Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

One of the most significant changes in the time I've been investing in property, and that's close to five decades now, is the availability of data. When I first started investing in the 1970s there weren't any blogs, podcasts, YouTube channels and the only way to get property data was to be part of the secret inner circle – which was then a men's club of Real Estate agents – because the lag in publicly available data was often over a year. The estate agents were custodians of the data, because back then the Valuer-General would only publicly release property once a year. Over the last decade, there's been an abundance of monthly data available to property investors and over the last year, most of the data houses have been providing weekly updates. But in our current fast-moving market sometimes even this is a little bit too slow. For property investors who need to make important financial decisions, the lagging available data can be an issue and the other significant challenge is understanding which data is important and which isn't and that's the topic of my chat today with financial adviser Stuart Wemyss. At the end of the show, you should have a much better understanding of what data you should be paying attention to and where to find it, and this should help better property investment decisions. Filtering Property Data It seems that currently every man, woman, and pet dog is upbeat about our property markets. Just look at the messages we are getting in the media. It seems that all the economists have now done an about-face and agree we're in for strong property markets for the next few years, with some being comfortable using the word house price boom. In fact, they seem to be out doing each other to see who can come up with the most upbeat price increase forecasts. Six percent gains? How about eight percent? No, it will be double-digit growth. What about sixteen percent over the next two years! But looking back over the last few years, we know that most economists have had a very poor track record, and we know much of the information we read is not useful. So, today in my chat with Stuart Wemyss, we get an understanding of what information is relevant and what is not. The media tend to only run stories that they consider newsworthy. Newsworthy often means that the information is time-sensitive e.g. what happened yesterday or what will happen tomorrow. This short-term information does not help if you intend to own a property for many decades. So what information is relevant? Very little from the media. A good and bad property costs the same to hold. You will pay the same amount of interest with respect to the mortgages. And the income and expenses will be relatively similar. The biggest difference between a good and bad property is capital growth. That is, what will the property be worth in 10, 20, or 30 years? In this regard, when selecting a property, there are three fundamentals you must consider: Land value Scarcity Past performance There's only a handful of important macros considerations Population growth Money supply Diversified employment opportunities Infrastructure Ignore the rest! Property investment is part art and part science, and that's where investors who only base their decisions on data get it so wrong. I know there are a number of people out there currently saying that they research every market around Australia sitting at the computers all day. Unfortunately, what they are missing is the perspective – they have the same speed right but not the bit right – not the on the ground knowledge - you can't get it by flying in & flying out and speaking to a few agents – perspective takes years to develop – it's something you can't buy. Some examples of when the data can lie to you Not enough data Not long enough time between transactions Too hard to ascertain its current value Our sales did not represent Fair market value You overpaid for the property when you purchased it Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Shownotes plus more here: What property data should I be paying attention to and what should I ignore? with Stuart Wemyss Some of our favourite quotes from the show: "I think we've got to remember that the media's job is not to educate you but to entertain you." –Michael Yardney "Part of an investor's job is to maximize their returns while minimizing their risk." – Michael Yardney "The few who do succeed are able to do so when the pain that does come to them – they can endure it because they prepared for 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.

Just like 2020 was the year of surprises many of us didn't foresee, I believe 2021 will offer its own surprises – but this time, on the upside. There is a perfect storm of economic outcomes and that's what I'm going to be chatting about with Pete Wargent in today's show as we have a look at the macroeconomic big picture that will affect our property markets, our economy, and our lives in general in the coming year. It's really only been a year since Coronavirus started to affect us. Just look where we were in the middle of last year and it's hard to believe where we are now. We've had spectacular success in containing the Coronavirus. The Morrison Government build the bridge he promised to get us across the other side and federal government and state government spending killed the recession, which was the deepest since the Great Depression. We now have record low-interest rates. A sooner-than-expected arrival of vaccines. And all the above has pumped up economic growth above expectations and helped the property markets and the stock market rebound, bringing both business and consumer confidence. We have an embarrassment of riches, with our economy surging ahead, so I hope my chat with Pete Wargent will give you some more clarity about what the future holds so you can make better investment and business decisions. Economic and property trends for 2021 with Pete Wargent 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. Australia's V-shaped economic recovery. Australia's economy has surprised on the upside. While technically we had a recession last year – two consecutive quarters of negative GDP growth, really the March quarter had very minor falls in GDP – there was really only one quarter, the June quarter, with a significant drop in economic activity. And boy has the economy rebounded since. Our economy is likely to keep performing well moving forward While the recovery to date has unfolded much more quickly than expected, it is important to remember that: it has been uneven and that despite recovering to pre-COVID levels by mid-2021, there remains a high degree of spare capacity in the economy. There is still some way to go and there are still risks ahead. $120 billion savings war chest is firing our economic recovery Saving is about to become unfashionable again. After rushing to build deposits during the COVID crisis, it seems we are now determined to burn through accumulated cash. What's more, the trend is going to accelerate. New forecasts suggest that by the end of this year we will be saving less than half what we are putting away just now, and that level will be around a quarter of what we were saving at the peak of the crisis. As panic swept the broader economy last year, the national savings rate soared to unprecedented levels, hitting 22 percent — or 22c for every dollar — at its peak. To put that number in historical perspective, it meant we saved $187bn in 2020, which works out at more than the total savings over the past 3½ years. More recently the savings rate figure has started to drop, though it is still sitting somewhere near 12 percent. The Commonwealth Bank ­estimates that households have put aside $120bn more than what is normally saved in the June, September, and December quarters last year — equivalent to 6 percent of gross domestic product as overseas travel and social activities were curtailed. The bank's analysts believe this money will be spent over the next few years, providing continued economic momentum as a good chunk of this money will find its way into consumer spending. And some of it will go to paying down debt and some will go into buying assets. We're already seeing this in retail spending and in our property markets. RBA and interest rates There has been a lot of chatter amongst media commentators that our booming property markets will force the RBA to intervene earlier than planned and raise interest rates. But in his recent statement, RBA Governor Philip Lowe once again put these predictions to rest explaining that the surging housing market will not cause the RBA to raise interest rates. He said it would not make any sense to do so. I know the media loves headlines about rising interest rates, but Philip Lowe once again reminded us that his aim is to bring inflation sustainably within a range of 2 to 3%, and to do this we need higher rates of wages growth and in his words: "The evidence strongly suggests that this will not occur quickly and that it will require a tight labour market to be sustained for some time." The Reserve Bank Governor emphasised this point, noting that the road to "normality" was long. Governor Lowe said that wage growth was a long way from 3 percent. And indeed inflation was a long way from sustainably being back in the 2-3 percent target band. Rising bond yields: The Governor sought to emph

As we move into a new property cycle, a whole new generation of people are going to become financially independent through property. So, today's show is going to be dedicated to helping you become one of those. I've got two segments for you today. The first segment is a chat with Brett Warrant about 10 questions you should ask yourself when you're going to buy an investment property – whether you're a beginner or an experienced investor. Then, in my next segment, I'm going to share five things that you can do today to become more successful tomorrow. 10 things to consider when buying an investment property With our housing markets entering a new cycle - a new phase of strong growth - there are more people interested in getting into property investment. Close to 50% of investors who buy a property sell up in the first five years and 92% never get past the first or second property. In fact there around 1.9 million Australian investors never get past the first or second property and less than 21,000 Australian investors only six or more properties So how do you succeed, how do you get into that small group of investors who build a substantial property portfolio? Currently, there are so many options out there. Everyone seems to have become a property expert with an opinion of how to create wealth through property. And, I don't know if you've noticed - many of their suggestions are conflicting. So whether you're a beginning property investor or an experienced investor, I'd like to help you take advantage of this new property cycle by discussing 10 questions that I believe all investors need to get their head around with Brett Warren, National Director of Metropole Properties, and my business partner who is based in Brisbane. What do I want to achieve? Is it money? Wealth? Financial freedom? Maybe all of the above! Remember the bricks and mortar are not really the end goal; rather they're just the vehicle you choose to get there. So firstly, identify your end goal and then formulate a plan to get you there in a time frame that works for you. Unfortunately, most investors don't have a plan and that's why they get lost along the way or get distracted by the latest investment fad or the next "hot spot." And if they do have a plan, I've found they rarely review it to make sure they're on track. Maybe you don't know what the future will hold – but you do know you need a substantial asset base. What is my preferred strategy? Once you know where you are going, you need to implement an investment strategy that helps you get there. Since you can't save your way to wealth, my goal is to build a substantial asset base through capital growth. Where should I buy? Location is critical to the long-term performance of your investment. I look for suburbs that have always outperformed the averages or one's going through gentrification. These are generally lifestyle suburbs in major capital cities close to the CBD, amenities, or the water. And the significance of the neighbourhood has only become more important. In urban planning circles, it's a concept known as the 20-minute neighbourhood. What type of property? This will depend upon your budget and while, in general, houses deliver stronger capital growth than apartments, this has a lot to do with the location of your property. I'd rather own a villa unit, townhouse, or apartment in a great neighborhood in an inner or middle ring suburb than a house out in the sticks Today more people are trading their backyards for courtyards and balconies to be situated in the right locations. 6 Stranded Strategic Approach – only buy a property: That would appeal to owner-occupiers. Not that I plan to sell the property, but because owner-occupiers will buy similar properties pushing up local real estate values. This will be particularly important in the future as the percentage of investors in the market is likely to diminish. Below intrinsic value – that's why I'd avoid new and off-the-plan properties which come at a premium price. With a high land to asset ratio – that doesn't necessarily mean a large block of land, but one where the land component makes up a significant part of the asset value. In an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area including gentrifying areas. With a twist – something unique, or special, different or scarce about the property, and finally; Where they can manufacture capital growth through refurbishment, renovations, or redevelopment rather than waiting for the market to do the heavy lifting as we're heading into a period of lower capital growth. Should I buy something old or new? More often than not, new or off-the-plan apartments are a "box" in a high-rise monolith. The problem here is that you pay a premium to the developer and miss out on the first decade or so of capital growth. At the same time, the majority of owners in the building are likely to be investors

There is no doubt that our property markets are in a broad-based boom, with almost all segments, other than the inner-city apartment market showing strong property price growth. And the media is having a field day whipping up a frenzy of emotions with headlines causing some buyers to worry that the housing market is running away from them. In fact, FOMO (fear of missing out) seems to be a common theme around Australia's property markets. But the general media and certain commentators on social media are worrying home buyers and investors by speculating that interest rates are about to rise or that unemployment will escalate to 8% when JobKeeper ends, or that everybody is moving to the country and city property values will be affected. So in today's show, I want to bust some property myths in two segments. You probably know that I host a regular weekly Property Insiders video on my YouTube channel where Dr. Andrew Wilson gives sensible, down to earth commentary about what's happening in the property market, and the audio recording of last week's video will be the main feature of today's show but first I'd like to bust some of the media myths about regional Australia's property markets, who's moving there and whether you should consider investing in regional Australia. The Regional Australia Myth I'd like to start by discussing the myth being promoted in the media that investing in regional Australia is a great idea. First, that's a silly comment – there are so many different regional markets, as you know I don't suggest investing in the Sydney property market or the Brisbane property market because even within capital cities there are many different markets divided by geography, price point, and type of dwelling. So, therefore, just suggesting investing in regional Australia makes little sense. Then there's the argument that some put in the media that this particular town in regional Australia has performed better than the Sydney property market. Again, that's a silly comparison, because the regional town may have 5, 10- 20,000 people in it and Sydney has 5 million people in it. A better comparison would be the long-term performance of a particular regional town against a high-performing capital city suburb. When it comes to investing, you shouldn't be considering how you want to live, you should be investing in numbers, stats, demographics, and evidence and that's what I'm going to share with you in a moment. What about migrants? We know that prior to the Covid pandemic and Australia shutting its borders, the population was growing faster than almost every other developed country and more than half our population growth of almost 400,000 people each year was coming from immigration. Property commentator Michael Matusik wrote a recent blog discussing the myths about regional population growth. Now there is no doubt that there is a small cohort of people who now want to live in regional towns within commuting distance of big capital cities because they have found they can work from home either part-time or full time, but Michael Matusik asks, "Is this what has been driving our regional property markets?" Matusik suggests that the real reason why the regions have seen an increase in net internal migration over the last 12 months is because people who would normally have moved from the regions to the capital cities are (for now) staying put. And the ABS statistics suggest that this is true. Net internal migration to the regions was 36,500 last year, which was up 14,000 or 62% on the year before. Now that sounds impressive, doesn't it? But you know how you can make numbers lie and twist them to make your point? You see… net migration is worked out by comparing those that move into an area against those that leave the same place during the same time frame. Firstly, that the overall level of arrivals to, and departures from, regional Australia has fallen over the last 12 months. This is because there are no overseas migrants arriving in Australia. This impacts both the capital cities and regional Australia. Secondly, the ABS statistics show that there has been little change in the number of people moving from the capital cities to the regions, whilst on the other hand, there has been a big increase in the number of regional residents who haven't moved. This trend increased during 2020 as certain Australian States implemented increasingly strict covid-related lockdowns and other restrictions. Around 70% of Australians live in our six main cities. I don't think this will change because of the pandemic. In short, the capital cities are where the jobs and the services that people want are located. The majority of high-paying jobs that are going to be created are going to remain in capital cities. Many regional residents have put their move to the capital cities on hold last year, and as a result, I believe we will see a big snapback to positive net migration to the capitals once the covid vaccines roll out and travel-

Have you considered getting involved in property renovations? If so, then today's show is just for you. Making a tidy profit renovating a property seems like an attractive proposition, doesn't it? And that's why more real estate investors are turning to renovations: you know, buy low, renovate cheaply, add substantial value. That's the aim of their game. Sounds simple enough. But it's not really that simple. Sure, anyone can renovate, but not everyone can renovate for a profit. If you've been reading my blogs and listening to my podcast, you know that my preferred investment strategy is to add value. It is to manufacture growth through renovation and development. So in today's show, I chat with Greg Hankinson, director of Metropole Constructions. Greg has completed thousands of renovations. We're going to give you some tips and share some traps to avoid if you're going to get involved in property renovations. And at the end of the show, I'm going to share my mindset moment with you. Renovations Insights and Mistakes The BRRRR strategy Buy, Renovate, Rent, Refinance, Repeat Flips flop You need to manufacture significant capital growth - upside to cover the costs and unless you do a structural renovation this is too hard to achieve – can't achieve with cosmetic renovation. Patients take time, cost more, require permits and the associated costs could easily add 50% to your renovation budget. With cosmetic renovations, you can't really get two dollars for every dollar you spend Why they flop - Transaction and holding costs, tax, unrealistic expectations, and flipping in a fickle market Which tasks to outsource Anyone can renovate, but that doesn't mean they can make a profit, so let's look at some tips to make your renovations more profitable. What needs licenses – the electrician, plumber, any building works over 5000 in Victoria and different in other states Hire a project manager; don't do the work yourself. Mistakes: Choosing the wrong location Do you need the right market location where there is a significant differential value if you renovate.? This is unlikely in cheaper blue-collar or regional areas. Become an expert in your location can't rely on Internet reports avoid Main roads Wrong Property Cosmetic renovations – must be 20+ years old and of significant value, a lick of paint is not enough Structural – probably 50+ years old – must have good bones Refurbish versus renovate What's the difference? The refurbishment has no direct equity creation no additional capital growth but it does increase the rental returns and possibly some depreciation benefits Refurbish and not renovate? When a good property needs refreshing, kitchen bathrooms are in good nick, all the basics are sound, when if you renovated it would be a risk of overcapitalizing Not getting the appropriate permissions Check the permissions required Council & building permits? Owners corporation? Avoid overcapitalizing It's very easy to find a property that needs a renovation, but not so easy to find one that will reap a profit. Work backward – establish a post-renovation market appraisal on the property, subtract the purchase price, associated costs, interest, and a healthy buffer and profit margin. What's left is your renovation budget. As a rule, keep the renovation budget to 10% of the market value of the property Not allowing a sufficient contingency amount Once a budget is established, allow a contingency based on your experience level and the extent of the renovation works. Allow a little more if structural works or there are planning/building approvals required and a little less if the works are purely cosmetic. Ballooning budget Unreliable tradesmen, deadlines slipping through your fingers like sand, and alterations to the plan can quickly add up to cause your renovation budget to blow. Planning for delays and allowing for contingencies is critical to a successful renovation. Unexpected and Invisible costs From finding asbestos to hitting hard stone when excavating, these are just some of the unexpected costs that can come out of the woodwork when your renovation begins. These additional costs burn into your wallet, but removing the issues do not add perceived value to the property. Tailor the renovation for the target market Becoming an expert in the area. Understand local demographics By knowing what the market expects, you can tailor the works to suit that market and therefore not spend on things that may not bring a return on your dollars. It's not how you want to live – think…The Block First impressions matter The wow factor – Natural light, fresh paint, new floor coverings, and window furnishings go a long way towards transforming a tired old property into something that will be sought after. Often it's the little things that can make or break a successful renovation. Neutral colors allow tenants to create their own identity with their belongings. Dominant colors and textures tend to close in the wall and make spaces feel small

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, today I'll be looking forward into the future as I chat with leading demographer Simon Kuesetenmacher about what he calls the Big Shift – some major demographic changes that you should be aware of if you're interested in the property or if you're in business But first, let me give you a couple of quick lessons from 2020 to help you take better advantage of our property markets. Timing the market is hard. Anyone who tried to time the top or the bottom of our property market over the decades I've been investing has usually missed out, so I would suggest spending your efforts finding the best asset you can rather than trying to time the market. Don't try and fight the RBA or our government.If you think about it, it's a government job to look after its constituents and protect them – not just by providing police and hospitals and the judicial system; but also protecting their jobs and the value of their biggest asset - their home. Economic depressions can be avoided. Our regulators have learned a lot over the last couple of decades and 2020 proved it - a rapid, large and well-targeted economic policy response can protect an economy from a significant shock and enable it to rebound quickly when the threat abates. Be careful who you listen to and turn down the noise. Last year investors were bombarded with information and opinions around what the coronavirus would mean to our economy and our property markets but much of this was just noise. Now that I have shared some of my lessons with you we are going to hear what Simon Kuestenmacher has to say, and even though we have discussed some of these concepts in previous podcasts, I'm sure you'll get a lot out of my chat with him as he introduces some new concepts we haven't discussed before that I think will help give you some clarity on what's ahead. And as always, I will share my mindset message with you at the end of our show. There's a big shift ahead for our property markets If you're like many Australians you're probably wondering what's going to happen to life beyond coronavirus. What's going to change in the way we live, work, and organize our cities? The simple answer is... quite a lot! And if you're a property investor, or a business owner you must understand how Australian cities are reshaping to stay ahead of the game. That's what I going to chat about today with Simon Kuestenmacher, one of Australia's leading demographers as I ask him for some insights into what his research suggests is ahead. 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. Just to put some context to our chat… It's easy to forget that one year ago we have a government dedicated to balancing the budget and bringing in a surplus. Our property markets were rebounding, and business owners would looking forward to a great year ahead. Then look what happened in 2020 - we experienced a pandemic, a lockdown and a recession, and then a rebound. Fortunately, we controlled the health issues better than almost every other country in the world, and it seems that our government has minimized the impact of the coronavirus cocoon induced recession. But the dynamics of our society have changed considerably. So, what next? Global context What's happening in the world economy? Australia's economy has recovered remarkably quickly International capital and international talent will still want to come to Australia Based on sheer economic data, investors might want to invest in Australia, New Zealand, S. Korea, and maybe Taiwan Local Context Lower population growth Some sectors of the economy are booming and others floundering Despite COVID & temporary low migration, the pie keeps growing in the 2020s. Demographics drive particularly high demand for family-sized homes. Low demand for small apartments before migration amps up again. COVID and working from home will reshape our cities. CBDs perform poorly for a few years; outer suburbs & regional towns benefit from millennial families seeking sizeable homes. Millennial values will transform suburbia. Expect more demand for active transport, hipster cafes, and family-friendly spaces. We will want future homes to be pandemic-proof The rise of the 20-minute Neighbourhood Pre-Corona Fried Egg – Post-Corona Scramble Egg Location is critical to the long term performance of your investment. It seems that in our new "Covid Normal" world, people love the thought that most of the things needed for a good life are within a 20-minute public transport trip, bike ride or walk from

Success is no accident. The most successful people in life – whether in business, family life, music, or on the sports field – may not always seem like they have much in common. How are The Beatles similar to Steve Jobs? Or Warren Buffett and Shane Warne? But when their traits, habits and work ethics are distilled down, these unlikely characters share many similarities. You see, aside from the random element of luck, much of what makes some people successful involves the cultivating of certain habits. Learning what these habits are and how to employ them in your own life is worthwhile. So in this month's Build a Business Not a Job podcast, I'm going to discuss 15 of the common success habits with Mark Creedon founder of Business Accelerator Mastermind. And if you're not in business or planning to go in one, if you're planning to be successful in your life, in your career, or as a property investor you'll definitely be listeners And then I'm going to have a chat with Mark about his new book – Have a Business not a Job and I'll get Mark to share 3 special tips or takeaways from his book you could start implementing straight away. Habits of Highly Successful People Capitalize on the time you've got. Time is your most valuable and scarcest resource. Successful people understand this and think in terms of minutes instead of days and weeks. They understand the true value of their time and manage their priorities accordingly. Understand what the most important task is that you have to do in your day. Lock that in and schedule time to work on that task first. Control your inbox. Schedule meetings as a last resort and make sure that you have a clear time frame. There's no sense in having a meeting just to have a meeting. Say "no" to more things. Business owners appreciate input from workers who know how to prioritize immediate goals. 80 percent of your results will come from 20% of your activities, so slow down and take stock of your activities and what actually is getting results. Consider batching your work. If you can do something quickly, get it out of the way. Do it, delegate it, or delete it. Know the rules of delegation. Set aside time to journal. It allows clarity of thought and the opportunity to take stock for a moment. Look after yourself, your body, your energy, and your focus. It's not a constant marathon, try taking the time in sprints instead. Takeaways from Mark's Book The book was designed for people who were just getting started in their business journey and to help them overcome some of the hurdles. Or for people who own a business that they have to work all the time (so it's still a job.) Some of the major things readers will take away from the book include: Understanding that time is the most precious commodity that they have, so they'll understand how to make better use of it. Understanding that the people around you are your most important asset. Tapping into what the true product is that you're selling. 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 Shownotes plus more here: The 12 habits of highly successful people you should also practice with Mark Creedon | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "Most people work on other people's most important task first." – Michael Yardney "Every time you put something on your list, you're actually saying "no" to something else." – Michael Yardney "Clients really seem to want a straight answer, take away my problems, help me by protecting me." –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.

Property values can't keep rising! It's all a Ponzi scheme and is going to come crashing down around us! The only reason our property markets have survived COVID-19 is because of bank and government support. That's some of the commentary you'll find in the media and over the Internet at present and on the other hand you'll find many experienced property commentators saying we're at the beginning of a new property cycle, one where property values will rise considerably. Who is right? Can property values keep rising, and can they rise as much as they have over the last three or four decades? That's the question Stuart Wemyss and I discuss today as we explain the various factors that created the significant property price growth over the last couple of decades. However, looking forward many of those growth drivers won't be the same. So what's ahead for property values? That's what we going to discuss so welcome to today's show. Will property values continue to rise? As we enter the beginning of a new property cycle some people are asking can property prices continue to rise at the same rate at which they have over the last three or four decades? In fact, some people asking can property values keep going up at all considering how expensive they are today? I know that's a question that has been asked of Stuart Wemyss, an independent financial adviser and author because he's written recently written a blog outlining his thoughts, so I look forward to hearing how he would answer these questions. Some of the topics Stuart and I discuss In Stuart's blog he had a graphic showing what happened to house prices over the last five decades from 1970 to 2020. Now I know I bought my first investment property in the early 1970s, paying $18,000 and I got $12 a week rent and I was excited. $18,000 was a lot of money in those days when the family car was a Holden Kingswood and cost $2000; so I guess one of the first things we have to do when looking at house prices is see how they performed after inflation. Property has always been expensive. It seemed like a lot of money in the 70s because it was a lot of money in the 70s. You need to take a longer-term view to understand how property prices have occurred. But no, property prices can't keep growing at the same level. Over the last 40 years, there has been population growth along with the rise of 2-income households. Some properties won't increase in value, but others will and some will perform better than others. It's important to look at real price growth, ignoring inflation. The bigger impact population growth has with investment-grade property is overall economic activity. Established money areas are liable to do better over the next 2 years or so. Borrowing capacity not likely to increase, interest rates not likely to decrease because they're already low. You want a property that will appeal to someone whose income is rising faster than the general population People from the work from home movement will want to live where things are, not out in areas where there's nothing around. Links and Resources: Stuart Wemyss' blog mentioned in this show – Property prices cannot keep rising at the same rate 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: Property prices can't keep rising at the same rate they used to; with Stuart Wemyss Some of our favorite quotes from the show: "It's real, after inflation, growth that's important." – Michael Yardney "There are more of us (Australians's), but we're also wealthier. We're earning more." – Michael Yardney "As always, demographics is going to be very important moving forward." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Have you ever wondered how certain people become so rich and successful? Well, if you've been listening to my podcast or reading my blogs and my books, you'd know that rich people don't become rich by luck or by accident. Becoming rich requires hard work, dedication, and a certain set of habits. We are what we repeatedly do. That means excellence isn't an act, it's a habit. My friend Tom Corley spent five years studying millionaires and gathering insights that become the basis of his blogs and books, including the book we co-authored: Rich Habits, Poor Habits. He found that people who became wealthy practiced certain habits, and that's what we're going to discuss today. Since there are so many habits, we're going to break this into a two-part series, and today we're going to start with the first group of habits that the rich do that differentiate them from the average person. Rich Habits Of course, not all rich people are successful, and not all successful people are rich; but remember I was much younger and more naïve then and wanted it all. So I tried 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 modelled 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. And over the years I've mentored more than 3,000 successful (and some not so successful) investors, business people, and entrepreneurs. In fact, a by-product of this is our top-selling book – Rich habits Poor Habits In it, Tom Corley and I explain… 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. We've found rich people share similar habits. While we explain this in some detail in our book, today I'd like to briefly share… The first of the 21 Success Habits of The Rich …. The average person thinks about spending their money, while the rich think about how to invest their money. The average person worries about running out of money while the rich think about how to use their money to make more money. Most people believe hard work makes you rich, while the rich know that leverage creates wealth. Successful people don't procrastinate. They don't spend their life waiting for the 'right time' or waiting until they know it all or have figured everything out. The average person believes having a job gives them security. The rich know there's no such thing as "job security." Most people want to be rich. The rich are committed to being rich. (They are very different things.) When things go wrong, the rich find a lesson, while others only see a problem. The average Australian sets their financial expectation low, so they're never disappointed. On the other hand, the rich set their financial expectations high so they're always excited. Successful people take calculated risks – financial, emotional, professional, psychological. But once they've built their wealth, they take fewer risks. The rich consciously and methodically create their own success, while others hope success will find them. The rich look for and find opportunities where others see obstacles. The average person believes life happens to them. They are a passenger, while the Rich believe that they create their own destiny. They are the pilot of their lives. Successful people align themselves with like-minded people. They understand the importance of being part of a team. They create win-win relationships. 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: Learn These Rich Habits of Successful People | Rich Habits, Poor Habits Podcast, Part 1 with Tom Corley Some of our favourite quotes from the show: "As you'll learn, it's not your fault if you're born poor. But it is your fault if you die poor." – Michael Yardney "It depends what your focus is as to what you see." – Michael Yardney "2020 taught us the importance of that. How many people who had multiple income streams – such as you, such as me – still had a really good year, while those who were dependent on one income stream, unfortunately, found that dried up." – 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 pa

Navigating the world of personal finance can be overwhelming, even for an adult who has quite a bit of experience in the working world. 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. And that's what I discuss in today's show with Australia's leading finance columnist Effie Zahos. 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. So don't let the financial world intimidate you. You may not have been taught much about finances, but I believe that 80% of personal finance is not financial education, but financial behaviour. If you can modify your behaviour with your finances, you can modify your financial future. And even if you don't have money problems, I think you'll enjoy my chat with Effie today as we discussed her new book and some lessons that we should be teaching our children and grandchildren. And of course, I will be sharing my regular mindset message with you. Ditch the Debt and Get Rich The Covid-19 pandemic impacted just about every Australian. Some people manage to cope well financially – others did even better financially turning lemons into lemonade, however, many Australians ran into financial difficulty with some only managing to stay afloat by raiding their super or putting a pause on their debt It was just another example of the rich getting richer and they did so by understanding the way money and finance works. Now you know one of the aims of my podcast and my blogs is to make more and more Australians financially fluent and help them get control of the finances. So, I was pleased to hear that leading Australian finance commentator and author Effie Zahos has just published a new book called Ditch the Debt and Get Rich. Effie Zahos is one of Australia's leading personal finance commentators, with more than two decades of experience helping Aussies make the most of their money. She's a regular money expert on Channel 9's Today Show and on radio around Australia and was editor of Money magazine and is now Editor-at-Large at Canstar. Some of the subjects that Effie and I discussed Effie's journey and why she believes it's so important to be the best financial version of yourself and learn the right things to teach your kids about finance. Why more Australians aren't wealthy and how they've become an instant gratification society. The importance of mindset in developing wealth. Money personalities – The animal traits that correspond to how you deal with money: Peacocks, Squirrels, Sloths, Owls, Ostriches The problem of buy now, pay later, and how to be more aware of the tricks retailers use to get us to spend. How to break the cycle of living payday to payday by no longer setting yourself up for failure. And how to put yourself on a bare-bones budget to catch up. Common money mistakes. Debt repayment strategies. How to think rich in order to become rich. How children learn financial literacy from their parents. Some of the lessons Effie has learned over many years writing and speaking about finance. It's not what you earn that counts it's what you spend. Compound interest can make you a millionaire. The great Albert Einstein once said: "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it". Learn to say no I am my best investment I will continue to make mistakes love your superannuation fund Set your savings on autopilot Have a plan and stick to it The people who will most benefit from Effie's new book: savvy investors, people who need a nudge, and people who want to be a better financial version of themselves Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Effie Zahos' new book – Ditch the Debt and Get Rich Shownotes plus more here: Ditch the Debt and get Rich with Effie Zahos Some of our favourite quotes from the show: "There's a whole science behind behavioural finance, and that's why I think reading your new book Ditch the Debt and Get Rich is important." – Michael Yardney "Some financial discipline early in life will allow people to have those enjoyments later on." – Michael Yardney "The gap between what you gain and how much you avoid offsetting the gain is the figure that matters the most." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

How do you evaluate the investment potential of a particular property? Well, that's what I'm going to share with you today as we I share 5 metrics that we use at Metropole when discussing the investment potential of properties that we're considering showing to our clients. But I'm also going to share 1 metric that you probably think is important, but we think is very misleading. In assessing a property's investment potential, we have a checklist of more than 100 metrics. I'm only going to share 5 with you today. But they're going to give you a good balance of the science and art of property investing. If you don't understand what that means, you'll understand a lot better after today's show. Then, as always, I'm going to share today's mindset message with you. Here are 5 numbers you can use to assess a property's investment potential and one you shouldn't When it comes to the numbers (scientific) component, I see many investors get swamped by the seemingly endless numbers that can potentially paralyse them into inaction. In reality, you don't need to know one million things; you just need to understand a few critical metrics. While this list is not exhaustive, here are a number of metrics the team at Metropole uses to assess the investment potential of a property. Past sales history We look at past capital growth to give us an indication of future growth potential. You probably know that one of the rules in Metropole's Six Stranded Strategic Approach is buying in an area that has a long history of strong capital growth and one that will continue to outperform the averages because of the demographics in the area. Once we've confirmed the quality of the location, we need to drill deeper into the property itself. And the best way to gauge its growth potential is to back-track its past performance by getting the history of at least two previous sales (if possible.) This is where a seasoned buyer's agent with intimate local market knowledge can be worth their weight in gold. Days on market Days on Market (DOM) is a measure of how long it takes to sell a typical property in a particular suburb, and more important than the actual number is the trend which provides context. Clearly, when demand is high and there are more buyers than properties available, the days on market will decrease. On the other hand, when the market is soft because of economic conditions, perhaps, or because of a flood of new properties becoming available, then time on market will increase, which will drive down prices. 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 would take for the current inventory (number of properties on the market) to be absorbed completely (purchased) based on the current rate of monthly sales, assuming there is no more new inventory being added to the market. A market is considered to be balanced if it has between 5 to 7 months' worth of inventory (properties for sale.) If hypothetically all the stock on market (inventory of properties) in less than 5 months that implies there is great market depth – lots of buyers waiting in line, with an inventory turnover of more than 8 months implies an oversupplied market with little depth of buyers. 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 only buy properties with owner-occupier appeal. Since owner-occupiers own 70% of Australian properties they "make the market" and add stability to property values in those suburbs where there is a predominance of established owner-occupiers who bought their homes many years ago and have significant equity in their properties. This is very different from the instability and volatility we see in house prices in areas dominated by investors - think the inner-city apartment market or the other suburbs where there is little scarcity and many first home buyers have over-committed themselves and have a little equity in their homes. Above average wages growth 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 - a change in the fortunes of the suburb as it is discovered by a higher income demographic, which slowly pushes out the lower-income residents. Be careful relying too heavily on the data There is no doubt that

No one expects 2021 to be the same type of rollercoaster ride as 2020. And while there's plenty of good news for our economy and our property markets, it's important to remember that considerable uncertainty remains and the extreme dislocation to many businesses over the past year will take time to resolve. Now the general optimism is well-founded. We seem to have this virus "thingy" under control, around 90% of the jobs lost during the pandemic have now been restored – and that's a tremendous achievement and our property markets are rebounding. Australia and the world also stand on the cusp of the biggest vaccination rollout in human history, which will only increase the rising levels of consumer and business confidence we're experiencing. Sure, the COVID rollercoaster may be slowing, but we still face a bumpy road to economic recovery and that's what I'm going to discuss in today's show with Pete Wargent as well as giving you five of my predictions for our property markets in 2021. Then I'll share my mindset message with you. 2021 Property Trends It seems that everybody has been making predictions for our housing markets for 2021 and they're all extremely positive. While on the one hand I love to hear this, on the other hand I'm always concerned when everybody thinks the market is going to perform in a particular way as we have seen how wrong consensus opinion has been over the last few years. So in today's show I share 5 property trends that I think will occur in 2021 and I'm looking forward to Pete Wargent's view on these, plus we'll discuss some economic trends that will influence our property markets. Property demand from home buyers is going to continue to be strong. One of the leading indicators I watch carefully is finance housing approvals, and these are at record levels suggesting that we will have strong demand from owner occupiers and investors in the first half of this year. Despite the "recession we made ourselves have", rising unemployment, and many small businesses facing challenges, interest in buying residential property has skyrocketed. This has come particularly from owner occupiers who have amassed household savings at levels not seen since the mid 1970s, and this is in part because they have not been able to spend their money on vacations or even local entertainment as they normally would. Now, with borrowing costs lower than they ever have been, the reassurance that interest rates won't rise for at least 3 years and increasing confidence that we've got this virus thing under control, it is likely that buyer demand will remain strong throughout the year. Investors will squeeze out first home buyers While currently there are many first-time buyers (FHB's) in the market, buoyed by the many incentives being offered to them, I can see demand from first homebuyers fading as property values rise from increasing competition as investors re-enter the market. You see…typically investors compete for similar properties to FHB's. Property Prices will continue to rise As always, there are multiple real estate markets around Australia, but in general property values should increase strongly throughout 2021. However certain segments of the market will still continue to suffer, in particular in the city apartment towers and accommodation around universities. It is unlikely the segments of the market will pick up for some time and the value of these apartments is likely to continue to fall as there just won't be buyers for secondary properties. At the same time some rental market will remain challenged. In particular the inner-city apartment markets which are reliant on students, tourists (AirBNB) and overseas arrivals. People will pay a premium to be in the right neighbourhood. If Coronavirus taught us anything, it was the importance of living in the right type of property in the right neighbourhood. In our new "Covid Normal" world, people will pay a premium for the ability to work, live and play within a 20-minute drive, bike ride or walk from home. Residents of these neighbourhoods have now come to appreciate the ability to be out and about on the street socialising, supporting local businesses, being involved with local schools, enjoying local parks. We will not fall off the fiscal cliff in March Some commentators are concerned that we will fall off the fiscal cliff when JobKeeper and the mortgage deferral system end in March. I can't see the government allowing this to happen after having put so much time effort and money into "building a bridge to get us across the other side" as Prime Minister Scott Morrison promised. In fact APRA (the Australian Prudential Regulatory Authority) released data showing Households and small businesses are now paying back more than 80 per cent of the almost $250billion in loans deferred at the height of the coronavirus pandemic. This is just another sign that the national economic recovery is on track and we won't fall off a fiscal cliff in March as some of those D

Would you like to know where the property hotspots are going to be as Australia enters some semblance of normality in 2021? Or maybe you'd like to know exactly where property values are going to end up at the end of this year. Now I know that's what a lot of the other podcasts are currently offering you, so I'm sorry if I'm going to disappoint you, but I'm not going to make any short-term predictions. You only have to look back 12 months to see how all those short-term forecasts worked out, or even further back to the beginning of 2019 and again see how incorrect those predictions were. On the other hand, it's much easier to tell you what the value of well-located investment-grade properties will be in 10 years' time. But that's not as sexy, is it? The problem is many investors take a short-term approach to real estate which is really a long-term investment. They try and make a quick profit such as buying cheaply, or looking for the next hotspot, which is a short-term approach, and then wonder what to do next; rather than taking the long-term approach of owning the best asset they can which will give them long-term compounding growth and in time produce substantial wealth. In today's show we are going to continue on the discussion I started last week with Stuart Wemyss and work through his 8 fundamental rules for property investment. These will serve you much better than learning where the next hotspot is going to be because as you know, this year's hotspot will become next year is a not-spot. When you understand these fundamentals and use them to formulate your investment decisions, you'll be ahead of the game and be in that small group of investors who builds a multi-million-dollar property portfolio, rather than in that large group of 1.9 million Australian investors who never gets past their first or second property. If you haven't heard last week's show, please listen to that after you've heard this episode – the order in which you listen won't matter - just go to The Michael Yardney Podcast on whichever player you use to listen to the podcast because the two shows are complimentary – there was just too much information to pack into one show. And while you are there, if you don't already subscribe, please subscribe to this show so you keep up to date as we enter an interesting year ahead. Once you've listened to these two episodes, I believe you'll be in a much better position to take advantage of the changing property market in 2021 as you understand Stuart Wemyss's eight rules of property investment. The Golden Rules That We Discuss This Week: Golden Rule 5: Set your asset allocation to reduce risk and maximize return Understand that you can't predict what's going to happen in the short term. Invest in a combination of assets that diversify outcomes. Be realistic about what long-term returns are going to be. Golden Rule 6: Invest in the share market using low-cost passive investments Two types of approaches: active fund management and passive management. Golden Rule 7: Only invest in 'investment-grade' property Three characteristics of an investment-grade property: Strong land/value component Have scarcity in terms of location and in terms of architectural style or building type Proven performance Golden Rule 8: Protect your investments from expected and unexpected risks Plan for the worst and hope for the best. Make sure that you have the right insurance, including income protection insurance. You need to put a will together. You need access to several year's worth of living expenses. A finance strategist can help you put the appropriate buffers in place. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart's Book – Investopoly Shownotes plus more here: 8 Golden Rules for building wealth in this new property cycle – Part 2, With Stuart Wemyss Some of our favourite quotes from the show: "Property's lumpy, so it's not easy to buy a property every six months or every six years." – Michael Yardney "Investing is meant to be boring, to give you the wherewithal to make the rest of your life fun." – Michael Yardney "The first rule summarizes it all, also. Invest for the long-term. Understand the long-term rules. Don't invest for the latest hotspot." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

As we enter a new year, many of us will be focusing on the strange year we've had and trying to extract the lessons we've learned. Rather than do the same, in today's episode of the Michael Yardney Podcast I'd like to remind you of some of the foundations of lifetime investment success with Stuart Wemyss. Now to be clear… this is very different to what you hear in the news, which basically focuses on short term investment trends. One of the core tenants of my approach is that true lifetime investment success is goal-focused and planning-driven. And the good news is by focusing on the long-term big picture trends it removes the burden of correctly guessing future short terms trends such as interest rates, inflation, hot spots, and the many other variables that the average analysts and many investors spend their days obsessing over. In a culture that will always be market-focused and performance-driven, my approach sees our clients at Metropole and also my personal investing acting on a financial plan, a customised strategic property plan that we build for our clients, rather than reacting to the vagaries of the investment markets. And that's why I'm looking forward to my chat with Stuart Williams today because I know he takes a very similar approach. Four Investment Principles At Metropole our approach is built on an evidence-based foundation of four investment principles. Master these, and lifetime investment success will be available to you. The four inner principles are: Faith in the future There are so many doomsayers out there, and I regularly get trolled by them, particularly on YouTube. But based on history, I confidently believe in the ability of a capitalistic society to prosper on the back of our collective ingenuity. Patience Contrary to the financially illiterate, the strategic investor refuses to react inappropriately to disappointing events. That's why they have a plan to follow, and they act on this plan rather than the short-term ups and downs of the investment markets. Discipline Similar to the principle of patience, discipline sees strategic investors continue to do the right things, even if the fruit of these decisions can't be seen in the short-term. Building a great team around you. Property investment is a process, not an event. In fact, property investment is a long-term process, and it takes up to 30 years to develop financial independence through residential real estate. And all successful investors I know can you to educate themselves, so they become financially literate, but they're very careful who is your bias they take, because they have learned most educators and so-called advisors have a vested interest They also surround themselves with professionals and mentors who they are prepared to pay for advice to ensure they maximise the investment returns, by having elastic advice in the areas of not only property but finance, tax, structuring legal matters and estate planning. These financially literate investors accept the guidance of their holistic wealth advisors and if they have sufficient disciple and allow time compounding and leverage to work its magic, their investment success is all but guaranteed. While simple, it's not easy. The 8 Golden Rules of Successful Investing - part 1 Golden Rule 1: focus on the long game Long term financial decisions promote exercising delayed gratification – patient investors are rewarded, impatient ones are not. The best question you can ask yourself is "what action can I take today that will result in me being a lot financially stronger in 10, 15 and 20 years?" Golden Rule 2: Know what you need and when you need it You need to set two important goals: how much income you need in retirement and when will you retire? Look at what you are spending today to extrapolate what you will need. Golden Rule 3: Spend less than you earn. Then invest the difference Commit to an annual surplus that you will contribute towards building your financial future then spend what's left over. If you are not a "saver" then redefine "saving" as "future spending" Golden Rule 4: Grow your asset base first. Then tilt towards income Select assets that provide most of their total return in growth and lower proportion of income How can capital growth help fund retirement? Sell assets, with enough time income will be substantial, invest in other income-style assets, sell one property and reinvest in bonds, etc. You need to develop a financial model in order to work out how much to invest, when and in which asset classes. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Buy Stuart's book Investopoly here – use the coupon code Yardney Shownotes plus more here: The 8 Golden Rules for mastering the game of building wealth – Part 1 with Stuart Wemyss Some of our favourite quotes from the show: "While it's easier and more trendy to be a p

What's ahead for our property markets this year? Is it time to be fearful or time to be greedy? We survived 2020, and 2021 is going to be another interesting year with a lot of positive things happening, but there's no doubt will have our share of challenging times, because even though we are over the recession there it will still be fallout from the recession to deal with, and clearly, we will keep getting reminders about coronavirus coming out of the blue. And every year there's an unexpected X Factor– I don't know what it will be otherwise it wouldn't be an X factor, but hopefully my discussion today will give you some clarity and direction forward to hitting property. However, there is one thing that I can assure you will happen this year. The typical property pessimists will be back again telling us our property market is going to crash. So today I share with you my thoughts or the short and long term prospects for our property markets. And in my mindset moment today I'm going to teach you one of the most useful lessons you can pass on to your children and grandchildren, and even if you don't have any or are not planning to have any, this lesson will be critical for you if you want to obtain financial freedom. What should you do in the current "interesting" property markets? I know many investors are confused with concerns remaining about the Coronavirus, high unemployment and the many mixed messages forecasting what's ahead for our economy and our property markets. I've noticed two types of emotion in those interested in property: Last year as it became clear our markets wouldn't crash like some property pessimists predicted, FOBE was the predominant sentiment - Fear Of Buying too Early - home buyers and investors trying to time the market wondering "what if prices do fall further?" Now FOMO (Fear Of Missing Out) is creeping back as house prices are rising around Australia. In fact, master investor Warren Buffet advised: "I'll tell you how to become rich.... Be fearful when others are greedy and be greedy when others are fearful." The two significant structural events that caused the massive rise in property values over the last three decades were: The Reserve Bank kept inflation within a narrow band meaning interest rates could fall at a time when time banks became deregulated and this allowed new non-bank lenders like Aussie John Symond to make cheap finance available for borrowers and over time interest rates kept falling and credit was easily available. At the same time wages grew and there were more two-income households. This allowed more Australian families to buy new homes or upgrade their existing homes as their families grew. These factors won't carry our markets forward in the future, in fact they played out a few years ago and haven't been relevant for much the last decade. We are currently in a low inflationary, low interest rate environment (not only in Australia but around the world) and there is really no room to lower interest rates. The effect of the extra spending power of low interest rates has washed its way through the system. We are now in a period of lower wages growth and more part-time jobs so it's unlikely that the average Australian family will have more cash in their pockets to spend on property There is still economic fallout from the recession we decided to have. Here's why I believe property values will increase in the short term. The big game changer that will bolster our property markets moving forward is the anticipated loosening of restrictions on banks' lending practices in March this year which will give the average home buyer and property investor significantly more borrowing capacity. More than that, there is a perfect storm of positive factors developing for our property markets – a confluence of multiple growth drivers which will propel our property markets into 2021 and 2022: Our economy is improving and moving forward further jobs creation, consumer confidence and business confidence (leading to spending and employment) will underpin our housing markets. Auction clearance rateshave been consistently strong in the last few months of 2020, not just in the two big auction capital of Melbourne and Sydney but around Australia. More buyers and sellers are in the market and transaction numbers have increased At the same time the banks are keen to write new business– another positive for our housing markets. Bank loan deferrals have been falling– there's no chance of an avalanche of forced mortgagee sales as many were worried about. The latest rate cut and the "guarantee" of rates remaining low for at least 3 years, will give home buyers and investors' confidence. Why our property values are guaranteed to increase in the long term While it's important to understand that while many factors like interest rates, supply and demand and market confidence, affect a country's property prices in the short term, in the long term prices are driven by two main factors: Populati

While many markets suffered from the economic impact of COVID-19, Brisbane's property values remained resilient last year, and now almost all property analysts are suggesting that Brisbane's housing markets will perform strongly in 2021. On today's show, I chat with Brett Warren, national director of Metropole Property Strategist based in Brisbane to understand what's really going on and why this time is different. In fact, digging deeper into the statistics of property growth over the last few years, some properties have far outperformed others and freestanding Brisbane houses with 5-7 km of the CBD or in good school catchment zones have grown in value strongly. Brisbane has really been a two-tier market and I know that many of the properties purchased for clients of Metropole's Brisbane office showed double-digit capital growth over the property last 12 months. While Melbourne and Sydney are highly regarded as Australia's two world-class capital cities, Brisbane is what many class as a "New World City", and on today's podcast we will explain what that means and why those investors who take advantage of the changing trends in Brisbane will benefit significantly over the next few years, so welcome to today show Some of the things we discussed Metropole has had an office in Brisbane for almost 2 decades and in that time I've seen the city morph into a new world city. Australia is very different from other countries with regards to the way we live. 86% of our 25 million population live in urban areas and 50% of these Australians live in either Sydney, Melbourne, or Brisbane. While overall, the Brisbane property market has underperformed Melbourne and Sydney over the last decade there are different segments of the market that performed very strongly and we dig into this as we have a chat. Australia has two global cities – Sydney and Melbourne - they are recognized around the world – Sydney for the Opera House, Melbourne for sport and art. Now Brisbane is being recognized as a "New World City." Brisbane punches above its weight - It's only the 172nd biggest city in the world, but it's the 80th most globally connected. It's in the top 30 percent of the world's fastest-growing cities, it's got world-class direct foreign investment, a competitive labour market, a highly lifestyle model and it's an international student city. A New World City must also have some "globally oriented" business clusters. In Brisbane's case, it's higher education, it's the digital economy and it's commodities and professional services of various kinds but it's also travel and tourism and conventions." Brisbane has been building its infrastructure and economy and is now attracting population growth. Also, Brisbane has less traffic congestion than Australia's 2 big global cities. What is the Brisbane property market? Let's be clear what we're talking about - many outsiders see Brisbane as stretching from the Sunshine Coast in the north to the New South Wales border in the south, 200 km long. In one sense they are right because the Gold Coast and Sunshine Coast are now closely interconnected with Brisbane and workers will commute from these locations on their jobs in Brisbane. In fact, that's one of the reasons why property values have not grown as strongly over the last few decades - because SE Queensland has had abundant supply of properties, however, we're not recommending investing just anywhere in this large parcel of real estate. We only focus on properties in prime locations within 5 to 7 km of the Brisbane CBD. Brisbane has underperformed Brisbane's capital growth has been from the top down. There has been strong capital growth in the sought after, more affluent, more established inner suburbs within 5 to 7 km of Brisbane, but there has been minimal capital growth in many of the outer suburbs where there is less affluence and plenty of supply, and in fact abundant new supply. For example, there are a number of commentators out there suggesting one should be investing in the Logan district or Ipswich, and while there has been substantial physical growth there – lots of new estates – there has been minimal if any capital growth. Brisbane's demographics are changing For a number of decades, Brisbane suffered a "brain drain" where skilled, educated young people finished university and moved to Sydney or Melbourne where the more highly paid knowledge jobs were. This is no longer the case, and a lot of millennials now are keen to stay in Brisbane as it is now a fun place to live. So, the big shift is that people no longer want to leave Brisbane, they want to come to Brisbane. This was clearly seen through the challenges Australia experienced in 2020. Millennials will shape the Brisbane housing markets. Demographics will always drive our property markets and because of their sheer size and stage in the life cycle, no generation will shape Australia more during the 2020s than millennials. They are now at the stage of their life where the e

With interest rates near zero, Australia's economy rebounding, and pumped with massive amounts of stimulus, and the coronavirus all but eradicated from our shores, our property markets are looking healthy and starting the year off on a strong footing. The stats show that after the nation went into lockdown last year, national property rates fell overall a cumulative 2.2 percent. And of course, this was led by Melbourne and Sydney that were most affected by the lockdowns. But of course, this was nothing like the predicted calamitous falls. Now on the back of continuing increase in confidence, strong growth low mortgage rates, and the emergence of a vaccine plan, many are projecting house price growth in 2021. In fact, many are projecting double digit growth this year. Are they right? That's what I discuss with Dr. Andrew Wilson, along with lessons from last year and housing market forecasts for 2021. Then, as always, I'll share my mindset message with you. Lessons learned from 2020: It was really the physical restraints to property transactions that impacted the market, rather than a change to our supply and demand. In other words, the property market fundamentals were and are strong Be really careful whose forecasts you listen to. Property investors who listened to catastrophic predictions missed out on good opportunities There isn't just one Australian property market. Markets are segmented by geographic locations as well as by factors like the type of dwelling and the price. Property investment is really a game of finance with some houses thrown in the middle What's occurring now: The unemployment rate is falling The economy is recovering well due to falling unemployment and even new jobs There's been a huge surge in housing loan approvals – 24.4% above pre-pandemic levels Consumer optimism is trending upward First-time home buyers are in the mix There is a lower number of listings in the market than usual The fiscal cliff is not a real cliff, more like a step However, the rental market still has some challenges Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Guest: Dr Andrew Wilson – MYHousingMarket.com.au Shownotes plus more here: Here's why we're going to have a ripper year in property + Housing Market Forecasts for 2021 with Dr. Andrew Wilson Some of our favourite quotes from the show: "You know what they say about opinions – there's like bellybuttons, everyone's got one, but they're not very useful." – Michael Yardney "The property market moves in a cycle and after every boom, there's a downturn or a slump phase, and then it actually starts to pick up again slowly, then eventually another boom occurs." – Michael Yardney "It may sound like a cliché, but maybe it's time to play more and work less." – 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

Would you like Life Time Wealth? Well…today we'll explain what that means and how you could achieve it as I replay a chat I had with my good friends Louise Bedford and Chris Tate from The Trading Game and we discuss the concept of true wealth. This is the last of the summer series of podcasts where I've been running three shows a week rather than two in January, but since this was the second most downloaded listen to podcast I've ever recorded I thought it important to let you listen to it again for the first time or again if you've been a subscriber for some years. The original recording of the show came about when Louise Bedford, Chris Tate and I were sitting around chatting about Wealth Retreat 3 or 4 years ago and we were discussing the concept of creating lifetime wealth, what true wealth really is, and some of the concepts we wanted to share with attendees at WR retreat. And the conversation was so good, it was a bit philosophical, that we actually pulled out a phone, I think it's Louisa's phone now and we just recorded an episode of the podcast for her podcast and mine, because we were talking about things we only tend to talk about between ourselves and we wanted to share with other people. For example I talked a bit about my first investment property, almost 50 years ago. We talked about how being truly wealthy is a lot more than just how much money you have or how many properties you have. We talked about the concept of creating lifetime wealth and leaving a legacy and we discussed how we are the mentors for our children and how if you want to leave a legacy you have to be important what do you pass on to your children, not moneywise – it's not what you leave your children but what do you live in your children. We talked a lot about the impostor syndrome, something that we speak for specialises in and we discussed about success, the miss match in some couples – something I come across very frequently were very different to our life partners with regards to how we think about money and success. There were so many fascinating concepts we talked about that I really believe you'll enjoy today show, but be warned, it's a little bit longer than normal and the sound quality wasn't as good as normal because, as I said we recorded it on the fly – we were just in the right zone talking about this content so I thought it was really important to grab the information to couple of years ago and it's just as relevant today, so welcome to this episode of the Michael Yardney podcast.* How to Obtain Lifetime Wealth Michael shares how he bought his first investment property over 40 years ago. He's made plenty of mistakes, but has still built a substantial property portfolio. He also gives back. To be truly wealthy you need much more than just money. You need money plus family, friends, health, spirituality, growth, and contribution. Chris shares his background. It is similar to Michael's but replace the word property with shares. How children absorb things without being taught directly. Legacy and leaving a ripple or something outside of you that carries on when you are gone. We learned about money, wealth, and riches from our parents and culture. What is your financial thermostat set for? You'll be surprised – it's set for what you have already got. Your thermostat won't change until you change and throw away the blame. The imposter syndrome or undeserved success. Not feeling worthy and self-sabotaging. Self-awareness deserving your success. How people believe the tool has something to do with their success, when it is actually the software that makes a success. How people who's views are mismatched may not be a match as a couple. The disconnect can produce tension and tear relationships apart. Couple's need to talk about their views about money. Partners need to be compatible on a whole host of issues. In the old day's people passed their trades on. Now property or shares can be passed to your kids, but it is not what you leave your kids it is what you leave in your kids. How we learn about money from our parents whether it is spoken or unspoken. Replacing non-productive beliefs with empowering beliefs. Teaching kids about training by loaning them money to trade and letting them keep half of the profits. How IQ and socioeconomic status can be linked. The importance of mentorship and getting together with other entrepreneurs. Find like minded people and the isolation disappears. How attending Wealth Retreat can help change your mindset and money habits. Links and resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Join us at Wealth Retreat in June 2021 The Trading Game Chris Tate Louise Bedford Shownotes plus more here: How to attain lifetime wealth, with Louise Bedford and Chris Tate – Summer Series Our favourite show quotes: "Wealth isn't about how much money you have, but what you're left with if you lost everything and had t

During his five years studying the rich and the poor Tom Corley identified 10 hard truths about the wealth gap that no politician or member of the mainstream media would dare reveal. And as I share them with you today, you'll probably get a few surprises. These aren't just our thoughts. In his 5year study, Tom asked 361 rich and poor people 144 questions each. That's 51,984 questions. From the data he gathered, he was able to identify 344 differences between the way the rich and the poor conducted their lives. Over one hundred million individuals have read something about my research, which has been cited, quoted, referenced, commended and criticized in 25 countries around the world. As a result, Tom has made a lot of friends and a lot of enemies. And he's about to make some more with this podcast. His research opened my eyes. One of the many benefits of having done this research is that he became privy to the inner workings of the lives of the rich and the poor. For five years he was that fly on the wall. And this fly has identified 10 hard truths about the wealth gap which we're going to discuss today in an episode which is part of what I call our summer series where apart from bringing you one new show each week we are replaying 2 previously published shows, and the foundational wealth lessons I'm going to share in today's show which was originally published a number of years ago will help you take advantage of the new property cycle that is appearing in front of our eyes in 2021 10 Hard Truths About the Wealth Gap Bad Parents – The poor have parents who simply do not do their job. Drugs, alcohol, gambling and a host of other parent character flaws pull the rug out from underneath their kids. Broken Families – The poor are raised in broken families. Divorce, incarceration, abandonment are common denominators among the poor that fracture the family unit. No Work Ethic – The poor are bad employees who have a bad work ethic. As a result, they find themselves regularly unemployed. Financial Negligence – The poor spend their money as quickly as it comes. They don't save. They don't invest. They are financially illiterate. Poverty Ideology – The poor believe they will be poor their entire lives. They see poverty as a fact of life. They are without hope and thus, without motivation to escape their poverty. Bad Health – The poor do not exercise regularly. They eat and drink too much junk food. They frequent fast-food restaurants. They take drugs and drink too much alcohol in order to numb their pain. They are overweight and out of shape. Uneducated – The poor do not embrace education. It's not part of their culture. They do not self-educate themselves. They do not read. They do not engage in self-improvement. Bad Habits – The poor have many bad habits and few good habits. Entitlement Ideology – The poor believe they are entitled to things others have to work very hard for. Victim Ideology – The poor believe others hold them back in life. They see themselves as victims. They look to the government to take the wealth of those who are producing and working hard in society and redistribute it to poor people. I now know that rich people, particularly the self-made rich, are the good people. They were raised by good parents, parents who cared and who mentored them to succeed. Poor people, conversely, were raised by bad parents. Some were raised in broken homes, some were raised with little to no work ethic, some were raised to be ignorant of finances, some were raised with a poverty mindset, some were raised to disregard their health, some were raised to shun education, some were raised with bad habits, some were raised to believe they should be given free stuff and some were raised to believe the world was aligned against them. We don't have a wealth gap in this country. We have a parent gap. If, as a society, we truly want to end poverty, we have to first acknowledge the cause of poverty. Parents. Parents cause poverty. Parents are to blame. As a great man once said, "the truth shall set you free." Links and Resources: Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits Shownotes plus more here: 10 hard truths about the Wealth Gap with Tom Corley – Summer Series Some of our favourite quotes from the show: "We know that children develop habits from things they see, things they experience, things they hear, and their mentors as a child are really their parents." – Michael Yardney "Bad mentoring from parents is more likely to – but not certainly – going to give you a disadvantage in life." – Michael Yardney "It's probably worthwhile reminding our listeners that we're all walking around with some good habits, some bad habits, some rich habits, some poor habits, some habits that are empowering us, and some habits and beliefs that are disempowering us." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people d

How wealthy are you? I guess that depends upon how you define wealth. In today's podcast, I chat with demographer and social commentator Mark McCrindle about wealth distribution in Australia. We talk about what's happened to the wealth gap between the rich and the average Australian, and we answer the question "are we better off financially than our parents were?" And of course, I'm also going to share my regular mindset message with you. So at the end of today's show, you'll have a better understanding of where you sit on the wealth ladder and what you can do about this. My conversation with Mark McCrindle: The rich keep getting richer, or so we keep hearing. But is that true? And last year, the coronavirus has seemed to affect certain demographics more than others. How has that affected the wealth distribution in Australia? With higher wealth and income levels than ever are we any better off? It's mixed. The cost of living is rising, costs of property and rentals are rising as well. So we expect income to rise because costs of living are rising. It's not as though we're rolling in money, but on average we're paying our bills. Two-thirds of Australian households carry debt, and a quarter of them have debt that's three times their household, so we're still carrying a lot of debt. But Australians have been moving forward with both income and wealth. How is wealth distributed amongst the different generations? It's mainly held by the older generations. It's largely in the household home. About one third is in financial assets such as shares and superannuation Are we better or worse off than our parents were? In so many ways, the younger generation is better off. It is getting more expenses to own a house. But the costs of things like travel, transport, and daily commodities are less expensive. Plus, the younger generations are investing more in their future earnings with education. Over time, they will start to catch up in terms of wealth. The younger generations will live longer and work longer, so they have a broader spread of wealth accumulation years. They also have the support of parents and higher earnings as they begin. What's happening to the gap between the rich and the poor? One of the best measures of that is the Gini coefficient. It highlights that inequality is getting less. How did COVID affect wealth? In many ways, it added to the equality of Australia. The government stepped in with Jobkeeper and Jobseeker and intervened to level the playing decks. Because of the uncertainty, many Australians also paid down debt and saved more. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Mark McCrindle's article on Australia's Income & Wealth Distribution Find out more about McCrindle Demographers Shownotes plus more here: What's happening to the wealth gap and are we better off financially than our parents were? With Mark McCrindle Some of our favourite quotes from the show: "My grandparents' generation were more workers and it was rare for them to go to university." –Michael Yardney "I think one of the things you've got to remember is that in Australia, our poor are still richer than the rich in many other countries." – Michael Yardney "Timidity is not a virtue, it's an illness." –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'm often asked what are the big lessons I've learned from investing in property for close to 50 years? Probably the most important lesson I think we can learn is that the market is driven not only by the fundamentals but also by the irrational and erratic behavior of an unstable crowd of other investors and homebuyers. So never get too carried away when the market is booming or too disenchanted when the market slumps, because letting your emotions drive your investments is a surefire path to disaster. Today, I'll chat with Brett Warren about some of the lessons I wish I'd known when I first started investing. If you can learn these lessons now, you can avoid paying some of the learning fees that I had to pay to the property market as I made mistakes. Now today's episode is part of what I call our summer series where apart from bringing you one new show each week we are replaying 2 previously published shows, and the foundational lessons I'm going to share in today's show which was originally published a number of years ago will help you take advantage of the new property cycle that is appearing in front of our eyes in 2021 Before we get into the main body of the podcast, I'd like to share two more lessons I've learnt over the years that I would've loved to have known when I first started investing. The first is that every year there is an X factor, and an expected factor that comes out of the blue to undo my best laid plans. Sometimes these are on the negative side and sometimes they're on the positive side like the unexpected election win in 2019 that led to strong property markets at the end of that year. The other big lesson that has taken me a number of decades to understand is that every 10 years or so the world breaks. Think about 2020 with the Coronavirus creating a world pandemic and recession. Then look back at 2008-9 with the Global Financial Crisis and before that was the Asian financial crisis. Can go back every 10 years or so and I found the world breaks. These lessons have taught me to be have a long-term focus and not make 30 year investment decisions on the last 30 minutes of news. They have also taught me to ignore the doomsayers and be very cautious of who's forecasts I pay attention to. The value of education It's easy to think you're smarter than you are when you don't know what you don't know. Goal setting Setting goals helps you focus because if you don't know where you're going, while any road may get you there, every road may also get you lost. Create a property team Most people think they know a bit about property. While property investing may be simple, it's not easy. You need to create a good team around you including mentors and advisors. If you're the smartest person in your team, you're probably in trouble. Think like a rich person Develop the mindset of rich people and build the rich habits that will help you achieve wealth Have an abundance mentality An analogy is to think of yourself as a cup. If your cup is small you can only accumulate a small amount of money, any extra will spill over and you will lose it. You simply cannot have more money than the size of your cup. Instead, develop an abundance mindset in which your cup is big and deserving of being filled with success. Delay gratification To become rich, you must learn to delay gratification as wealth is the transfer of money from the impatient to the patient. Overcome your fears Fear can prevent us from investing because we see it as too risky. Form a sound investment strategy, and get a property team around you to minimize the risks. Don't give in to fear Don't let failure hold you back We all make mistakes, but you can't allow them to hold you back. Learn from them and move forward. Understand the power of compounding and leverage The earlier you start investing and the longer you hold your properties, the more time your money has to grow. Property won't make you get rich quick. Having invested for nearly 50 years now, one of the many lessons I've learned is that property investment is not a "get rich quick" scheme. It's a get rich slow one! Ignore white noise It's not the media's job to educate you. It's their job to entertain you and get you to click on their links. Keep your eyes on your long-term goals and don't spend too much time worrying about short-term challenges in the market. Capital growth and cash flow are both important Residential real estate is a high-growth, relatively low yield investment vehicle and the key to wealth creation is to grow a substantial asset base of "investment grade" properties. However, while capital growth gets you out of the rat race, you need solid cash flow to keep you in the game. Location is non-negotiable Remember that 80 percent of your property's performance will be due to its location and about 20 percent because of the property itself– so never compromise on location. Develop financial discipline To become rich, you will need to learn to spend less than you earn, save t

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

We're into a new year, and there's lots of good news on the horizon. We're going to have a better year this year than in 2020. We can't have all of those challenges again this year, can we? There's lots of good news. The economy is picking up, we've beaten the recession, it looks like we've contained the virus, and there's an earlier-than-expected arrival of a vaccine. The path to normality has come along a lot faster than we expected. What happened to that fiscal cliff? It was merely a step down before we started to ascend again. But among all of the good news, there's some bad news. Some people have had health issues last year, others have had financial issues that are continuing on. To increase your chances of financial and property success in 2021, I'm going to have a chat with two experts who are going to share their wealth building tips with you, in addition to some tips for success in 2021. Highlights of my interview with Kate Forbes: Kate's advice included:- The only certainty we have is that everything will change. Every year there's an X factor – an unexpected event that affects our markets on the upside, or often the downside. You need to be able to roll with the punch and tweak things to adjust, even within your long-term investment strategy We can only hope for the best, but 2020 shows that we also have to plan for the worst Insurance offers a buffer and peace of mind Owning quality assets are also a form of insurance, that's why it's important to own the best assets you can afford The best strategy is acquiring the best property you can at the best price you can and sitting on it The strategy of reinvesting may not be appropriate for as many people at present. Don't try to time the market You'll need a more holistic approach to be successful in 2021 Highlights of my interview with Ken Raiss: The lesson this year is nothing new from prior years. People who don't get good advice make the same mistakes over and over again. Strategic investors structure their purchases to protect their assets and maximize their cash flows It's harder and more expensive to fix these ownership structuring mistakes after the fact In 2021, review your affairs to minimize risk All investors should have a holistic plan that maps out their journey The plan should maximize their wealth creation and protect it and pass it on to the next generation The plan needs to have the correct structure to meet these goals Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Kate Forbes – National Director Metropole Property Strategists Ken Raiss – Director Metropole Wealth Advisory Shownotes plus more here: Wealth building tips for 2021 from 2 property experts – with Kate Forbes and Ken Raiss Some of our favourite quotes from the show: "That's one of the reasons the percentage of first homebuyers is at record levels." – Michael Yardney "Taking on extra debt, taking on extra commitments doesn't actually help their cash flow." – Michael Yardney "Buying an investment isn't an event, it's actually a process and it starts long before you buy 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

Let me ask you a question - Have you made any mistakes in your investment career? If you're an investor, you almost certainly have made some mistakes. Nobody starts out as a great investor – property investment is a learned skill. Today, I'm going to share with you one of the biggest mistakes I made early on in my investment career indisputable proof that I began life as an investment suck up. Today's show is part of what I'm calling the 2021 Summer Series where we replay some of the best episodes of the past. Throughout January I'm sharing 3 shows a week with you rather than normal 2; and the reason I'm keen for you to listen to today show is because I hope you'll learn something from the big mistake I made. You see… I was taken in by a spruiker. In the almost 50 years that I've been an investor nobody has made mistakes in the investment journey than I have. In fact, I often say I'm a real success at failure. Yet I'm a very successful investor today, and that's largely because I've learned from my mistakes. So, as I said, I hope you learn from my mistake, made early on my investment journey where I lost 100% of my invested capital, and that was one of the many learning fees I paid to the market over the years. Subsequently, I made lots of mistakes and paid lots of learning fees along the way, and that's one of the reasons I share these regular podcasts with you to help you avoid making the same mistakes. Now the mistake that I'm going to share with you today was made in the early 1970s, but the lesson is just as relevant today because now that our property cycle is now entering a new stage there are plenty of sharks out there, plenty of property spruikers out there giving "advice" who have a vested interest rather than your interest at heart. And I hope you enjoy our chat as I expose a few things about my past. Then I'm then going to have a chat with Pete Wargent about 3 demographic trends you need to understand as a property investor. But remember, this is the replay of a show that was recorded a couple of years ago, yet the information is timeless, so it'll be interesting to see the comments we made about demographics before the coronavirus affected our markets in 2020. However, I believe the long-term trends Pete and I talk about are just as relevant today as they were back then. I also have a great mindset message for you. My Worst Investment Loss Exposed! I'm keen to tell you the story of how I lost 100% of my invested capital many years ago, way back in the 1970s, and the investment mistakes I made which 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. Most investors pay the market a huge learning fee in the way of mistakes. Studies show that around 50% of investors who buy an investment property sell up in the first 5 years. Clearly, they've done something wrong. And most investors who stay in the game don't make it past their first or second property, so clearly, they're not doing things right. So why not learn how to avoid their common mistakes? 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. Here are a few of the more obvious mistakes I made with this investment: I gave my money to a virtual stranger without doing enough due diligence I invested in something I didn't understand I bought a story rather than investment fundamentals. I was lured by the opportunity of making quick money In reality, I was speculating, not investing and risked money I couldn't afford to lose. I had no investment strategy – just a desire to get rich quick. I learned many lessons from this experience including: Not everything that glitters is gold Sometimes your best investments are the ones you don't make. Don't invest in anything you don't fully understand. I knew nothing about gold mining, so I was speculating rather than investing. I had no competitive advantage and there was no mathematical expectation for my investment strategy. One of the worst things that can happen to an investor is to get it right the first time. I thought I was smarter than I was when in reality my investment success so far was in large part to a rising property market – a boom that made me look smarter than I was. Don't become overconfident -the market will soon humble you. I didn't understand the incentives of the so-called "advisor" who really had a vested interest which created biases in the recommendations he gave me. My worst investment mistake was a cheap lesson This investment was the first of many learning fees I've paid to the market ove

While you're listening to this podcast, my wife and I are away on our vacation. Unfortunately due to Covid, it's not the extended overseas trip we usually take at this time of the year, but we are able to take a number of breaks each year because we've built a substantial property portfolio that gives us the lifestyle we enjoy. I'm not showing off. What I'm suggesting is you should also build a substantial asset base to give you choices in life. How are you going to do that? How are you going to be different from all those investors who don't get past their first or second property? The answer is to learn from those who have already succeeded – who've achieved what you want to achieve. That's what Pete Wargent and I are going to talk about in today's show. As part of our summer series, I'm replaying the show it was it first published about a year ago where Pete tells us what he learned from successful investors when he attended Wealth retreat. I'll also share something special in today's mindset moment. Wealth Retreat Pete Wargent is one of the regular presenters at Wealth Retreat. But he attends to learn as well as present. Today he's going to share some of the tips he learned at last year's Wealth Retreat. There's not one property market There are multiple property markets around Australia all at different stages of their own cycle. In a boom, everything sells. But when a downturn comes, you can see how much better well-appointed properties hold their value. That's why you need a tried and tested formula and an investment strategy that always works, not one that only works right now. If you want to grow your business, you need a business coach You never know which nuggets of advice are going to make all the difference. Even if you're already successful in your own right, you can still use advice from other successful people. It helps to have someone to hold you accountable. The power of networking The most successful people always have the most powerful networks, so anything that you can do to build a network of successful, like-minded, and powerful people can only help. But there's only so much time in your life to make connections, so an event like the Wealth Retreat is a perfect opportunity to meet with the right sort of people. Links and Resources: Michael Yardney Metropole Property Strategists Pete Wargent Join us at Wealth Retreat 2021 in June 2020 – read all about it here now and express your interest Some of our favourite quotes from the show: "It's isolating, it's hard on your own and you need a tribe around you. But you need the right people." –Michael Yardney "Why not, while you are an employee, set up your own business on the side." – Michael Yardney "Failure is never permanent. That sinking feeling that you've got, that will never last forever." – 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

Did you make New Year's resolutions for 2021? What were they? Were you planning to get more money? Become healthier? How many have you broken already? My resolution of eating more healthily didn't last long. But I know that a lot of people are planning to make 2021 a great year considering the challenges and how many opportunities were lost in 2020. So, in today's episode, I've got two segments to help you if you're interested in property investment. The main segment is a long, detailed discussion about gentrification. You see…If you understand how gentrification works and what to look for, you can consistently outperform the market with your investments because of the cycle of the suburb. Then in my mindset message, I'm going to ask you where you're going to be in ten years' time. Because wherever it is, you're surely going to be there. But are you deciding how you're going to get there and if you're doing the right things to get to the right spot? Gentrification and the cycle of the suburb Gentrification represents a powerful opportunity to increase both your property returns in the short term, and your overall real estate wealth in the long term. There is no such thing as one property market in Australia – instead, there are multiple property markets, each with their own specific drivers and fundamentals. While each state has its own property cycle, suburbs have their own cycles as well. These suburbs are "gentrifying" – which means that they are going through a period of improvement. In general, capital growth in these areas will outperform the averages. These areas go from and ugly ducklings to a beautiful swan and therefore the homes in these suburbs increase in capital value faster than the average. As a property investor, if you can identify an area at the earlier stages of gentrification and buy while prices are more affordable – you stand to benefit from ongoing capital growth. What caused this gentrification? One of the main factors behind this revitalisation was the exodus of manufacturing to the suburbs, driven in part by cheaper transport and better roads. At the same time, many migrant workers departed to the suburbs to live in detached houses with front and back yards. Interestingly at around the same time, our society started to experience higher education levels, which necessitated more people being closer to campuses. These were usually in or near the CBD, and so being close to the city became more desirable. The diversity of serviced-based jobs located in the CBD, together with the increasing number of women in the workforce and declining household sizes, all made the prospect of living in those smaller properties near the city more attractive to a larger cohort of potential buyers and renters. Gentrification is a change in the fortunes of a suburb as it is discovered by a higher income demographic, which slowly pushes out the lower-income residents. This usually occurs where working-class people, tenants and migrants move out as the land becomes too valuable and more affluent people move in renovating the old homes and improving the surrounding shops. These new, more affluent residents invest time and money improving their new neighbourhood, pushing up prices and rents. So how do you spot a suburb that is in the process of going through this metamorphosis? One unusual and unexpected property research strategy to help in this regard might be through look at the dogs walking around the neighbourhood. Yes, you read that correctly – I am suggesting that you look to the dog breeds for a sneaky clue! To make things clear: just because a suburb has cheap properties, that doesn't mean it's destined to become the next growth area. Some suburbs are inexpensive for a reason and won't improve because of various socio-economic factors. There might be too much industry in the area, a lot of social or public housing or possibly an ongoing crime, gang or drug problem. Or maybe they are outlying suburbs with poor infrastructure, facilities or public transport, and little prospect for change. On the other hand, the type of suburb to look for is one that is relatively cheap today but has the potential for future capital growth. Some of the major drivers of capital growth are: Proximity to the CBD or the water. Adjoining a more expensive neighbourhood so it can benefit from the ripple effect. Desirable amenities such as good public transport, a large shopping centre, or within the catchment of a highly prized public school. Older attractive houses with character features, that are ready to be renovated. Areas where governments are investing in local infrastructure or beautification programs. Some of the steps you can take to find a suburb that is improving are to go for a drive and a walk. You'll "know it when you see it" because you'll find evidence that people with money are moving in. They will be spending large amounts of money renovating or extending their homes. There will be white (the new black) SU

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

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

2020 didn't exactly turn out the way I or anyone expected at the beginning of the year. Just as the bushfires were receding, we started to learn about this virus in China that eventually made its way to our shores. The pandemic caused massive health issues in Australia and around the world. Many countries, including ours, have had two waves of Coronavirus. It kept many of us confined to our homes, it shut down major parts of our economy, and many major economies have seen falls of the GDP of 10% to 20%. Australia did pretty well, comparatively, but we also saw a surge in our unemployment, and we saw inflation plunge. But we got through it much faster than most expected, and while we're officially out of the recession, we're not out of the woods just yet. So today, I'd like to discuss some lessons from last year and see how they're going to affect our economy and property markets this year with leading commentator Pete Wargent. Some lessons from last year that will affect this year: The world economy is going to look very different moving forward. There's going to be a bumpy and slow recovery in Europe and the United States There will be a lot more trade tensions in the years ahead The pandemic increased tensions in China There are a lot of challenges still to go in the U.S. They will probably have a bumpy recovery In Australia, the Reserve Bank has stated they won't increase the cash rate for at least three years. The cash rate has a direct impact on mortgages, so this is important for property Established and first home buyers are back in the market Immigration has taken a hit, with mixed results Some Australians are returning home An oversupply of new apartments is less likely to be an issue Technology is being embraced faster and is making people more productive Debt is cheaper than it's ever been Changes to stamp duty will impact our property markets Strategic investors were protected from the ups and downs of 2020 by: Owning the best assets Having financial buffers in places Setting up the right ownership structures Having insurance Obtaining holistic advice We discuss why people want to hear negative forecasts You need recessions and downturns to test resilience Predictions for 2021: 8% to 12% price increases for Sydney and Melbourne The increase will affect houses more than units Brisbane will see 6% to 10% or more Perth might experience a rebound as well Links and Resources: Metropole's Strategic Property Plan – to help both beginning and experienced investors Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: Here's what the next 12 months have in store for our economy and property with Pete Wargent Some of our favourite quotes from the show: "I think one of the effects of COVID is that inflation around the world is going to remain weak." – Michael Yardney "There isn't the large construction pipeline with lots of new dwellings coming there, so I can't see an oversupply looming in our big cities." – Michael Yardney "I slept much better because I actually had set myself up by expecting the worst, and being prepared for the worst, I guess, but looking forward to the best." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

I was recently asked to put together a list of simple rules that distilled my property investment philosophy, so in today's episode, I'll give you 9 simple property investment rules to go by. In my mindset moment, I'll share 2 inspirational quotes that have helped me and that might be helpful for you as well. Then we'll discuss some of the differences that separate rich people and poor people. Hopefully, by the end of the episode, you'll be a little wiser when it comes to money, property, and success. 9 Property Investment Rules Become financially fluent – You need to understand how money, finance, the property market, and the economy work. Adopt a proven investment strategy – Real estate is a high-growth, low-yield investment, so it's best to invest for capital growth. Not every property is investment property – you want properties that are going to out-perform the averages in capital growth. Demographics drive markets – Demographics are more important than short-term ups and downs when it comes to shaping our markets.rules-1752406_1920 Real estate investing is a game of finance with some properties thrown in the middle – property is a long-term game, so you'll need financial buffers along the way. The economy and our property markets move in cycles – each boom sets up the next downturn, and each downturn sets the stage for the next boom Follow my 6 Stranded Strategic Approach and only buy a property – properties should: Appeal to owner occupiers Be priced below intrinsic value Have a high land to asset ratio Be located in an area that continually outperforms the averages Have a twist that adds value Come with the potential to manufacture capital growth Don't focus on bargains — Properties that no one else wants today will probably be the type of property that no one else will want in 5 years' time. Allow for an X-factor – unforeseen events can be positive or negative, but they're sure to happen. 10 major differences between rich and poor people If you've been listening to my podcast you'd realise that I believe wealth is a choice that we must all make. Wealth is a mindset Bill Gates once said, "It's not your fault if you were born poor, but it's your fault if you die poor." In Australia, there's no reason why you should live in poverty. Wealth is waiting for you, but you have to make up your mind if you want it in your life. For years I studied the rich then I became one of them, and for the last decade I've mentored over 2,000 people to become rich Here are 10 of the major differences I've realised that separate rich and poor people: 1a. Poor people are skeptical. I distinctly remember a nephew of mine saying, "Those plumbers are a rip-off! They'll charge for things they haven't done. He thought that everyone unjustly wanted his money and that everyone is out there to get him. Do you know someone like that? 1b. Rich people are trusting. Rich people have the tendency to trust those they meet (within reason) and give others the opportunity to be themselves. 2a. Poor people find fault. People who are poor are always looking for the problems instead of the solutions. They end up blaming their environment, circumstances, jobs, weather, government and will make an extensive list of excuses as to why they cannot be successful. 2b. Rich people find success. Rich people understand that everything happens for a reason. Rather than letting life happen to them, they take direct action and make big things happen. They put aside all the excuses and eradicate their blame lists because they have to do what must be done. 3a. Poor people make assumptions. When it comes to knowing the truth, poor people often make assumptions. If they want to reach out to a someone, they might say, "They probably don't have time to talk to me." Instead of checking the facts or asking questions, they never make a true attempt when it comes to getting what they want. 3b. Rich people ask questions. Many rich people ask the question, "What if?" For instance, "What if I wrote an email to that person and he or she answers?" If you begin to ask questions, you will save yourself a lot of hassle. The power is in the hands of those who ask the right questions. Then don't answer your questions, question your answers. 4a. Poor people say, 'they' and 'them.' Have you noticed how the people at the checkout at the supermarket say, "They never have enough cashiers. I don't know what's wrong with them." Obviously, these people don't take any ownership and responsibility for their job. They certainly separate themselves from the job that was paying her. 4b. Rich people say, 'we.' At one of my favourite restaurants, the server said, "We take great delight in cooking our steaks in real fire." Her sense of pride and ownership stimulated me, which allowed me to give her an honourable tip. Surely, you will be rich when you invest more into what you believe in. 5a. Poor people want the cheapest way. Have you noticed how poor people tend to look for the cheapest i

For many of us, 2020 has been a year to forget, but I don't think we're going to do that easily. I'm confident that we're going to remember 2020 for a long time. I don't know when you're going to listen to this podcast, but it's almost certainly time for me to wish you a happy, healthy, and prosperous 2021 – a much better year ahead. 2020 brought a lot of its challenges to us, but it's actually been a great year for me, my family, and my team, as well as for this podcast and blog. I look forward to continuing this education in 2021, but for today, I want to say thank you for being part of my community, and to share with you 20 lessons I learned in 2020. Michael Yardney's 2020 lessons Each year brings its own set of wins, challenges, and lessons to learn and 2020 was certainly no exception. It's been an extraordinary year. Nobody could have foreseen all that's happened, including the coronavirus, its economic fallout and the way our lives changed. But as we head into 2021, I can't help but reflect on what Australia as a country has accomplished and what I've achieved personally, what I've overcome, and the lessons I want to carry with me into the New Year. Here are my top 20. Expect the unexpected. Every year an unexpected X factor comes out of the blue to undo the best laid plans – sometimes on the upside (like the miracle election result in mid-2019) and sometimes on the downside like Covid19 in 2020. While an X factor seems to come every year, a major Black swan event as some call it, one that "breaks the world", tends to come every decade. Focus on the long term Strategic investors have a long-term focus and don't change their plans based on what's happening "now". In fact, they don't buy investments that are working now – they investment in the type of assets that have always worked. Clearly this was the thinking behind Warren Buffets quote "Be fearful went others are greedy and be greedy with others are fearful." It's the media's job to entertain you – not educate you. Remember… it's media's job to get eyeballs on the advertisers' content, rather than to educate you. Think about it… how many of those expert's forecasts this year came true? But look how many people worried and stressed about the potential outcomes that just didn't occur. Unfortunately, being overwhelmed with misinformation led many people to live in a state of fear and anxiety and caused some to make disastrous investment errors. Take economic forecasts with a grain of salt. If you're reading something frightening in the business section, or hearing it on TV, or learning about it from your neighbour, it's almost certainly too late to act—because the information is already reflected in market – in either the share price or property prices. Don't believe the Doomsayers There will always be somebody wanting to stall the aspirations of their fellow Australians who are looking to take their financial futures in their own hands and do something about it. Don't let them stop you achieving your financial dreams – the doomsayers are always wrong, at least in the long term. 6: No one really knows what's going to happen to the property markets. As a real estate investor, while it's important to have mentors make sure you're listening to somebody who has not only built their own substantial property portfolio, but someone who has kept their wealth through a number of cycles. There are just too many enthusiastic amateurs out their offering investment advice at present. 7. There is no such thing as the "Australian property market." There are multiple markets in Australia, and each state is at a particular stage of its own property cycle and within each state there are multiple submarkets depended upon price point, geography and type of property. Don't try and time the markets. 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. That's because market movements are far from an exact science. And if you think about it, the top and the bottom of the market are really only one or two days or weeks or months in the cycle. The crowd is usually wrong Market sentiment is a key driver of property cycles and one of the reasons why our markets overreact, overshooting the mark during booms and getting too depressed during slumps. Remember that each property boom sets us up for the next downturn, just as each downturn sets the scene for the next upswing. Property Investment is a game of finance with some houses thrown in the middle If you can only afford to own 2 or 3 properties, make sure they are all "investment grade" properties that are working hard for you. Invest for Capital Growth At Metropole, our 40-year analysis of investment returns shows that properties with higher rental yields generally deliver low overall returns for investors. Our analysis proved that over the medium to long term, properties with lower rent

You're in for a treat today because I'm going to chat with one of my very early mentors when I started my property investment journey. I bought my first investment property in 1971 without much money, having saved a little deposit and going halves with my parents and I definitely didn't understand the rules of the game. I just knew that wealthy people owned property and I wanted to be wealthy. At that time, I didn't have any books on property investing and clearly there were no podcasts. There weren't even investment tapes or CDs available in those days. One of the first books I read was by Robert G Allen, an American author who wrote the book Nothing Down. Obviously, the concept of buying properties with none of my own money – nothing down as the Americans would say, or no deposit – seemed a very attractive proposition. While it may well have work in the United States, those principles did not work here then or today, even though some people still suggest you can work your way around the system by investing in property with no money down. Let me make it clear: I don't advocate that strategy and never have. However, Robert Allen went on to write 10 books including five New York Times bestsellers and I kept buying them and learning from him. Especially his great book Creating Wealth which explained how to retire using his seven principles of wealth – this book, which we'll be discussing in my chat with this legend of real estate today, changed my way of thinking about money and property investing Robert's subsequent books and training courses also were part of my early investment learnings and still stay with me today, so I was excited to have the opportunity to interview Robert Allen recently. I'm sure you going to get a lot from our discussion. But here's a word of warning…. Robert does mention his concept of buying property with nothing down and that you can go and find distressed vendors and take over their mortgage and buy a property at a huge discount. I was going to cut that section out of the interview but decided to leave it in, not out of courtesy to Robert, but because while these principles may work in the United States where the economic situation is very different, they definitely won't work for property in Australia. However, I decided to leave that segment of the interview in so that you can hear how some people think and how others in the property market in Australia are incorrectly teaching these principles to naïve investors today. Let me be clear, our housing markets have moved on and the next property wave has commenced. There are very few mortgagee sales happening, and there are very few distressed property owners who would let you take over the mortgage as Robert suggests. As I said the situation maybe different overseas, but this particular aspect of his investment strategy just doesn't work in Australia should be very wary of those selling courses trying to teach you those techniques here. There are legal and stamp duty reasons why this doesn't work here. It's another example of how many overseas gurus just don't understand the local market here in Australia and why their teachings are not necessarily relevant here. The fact is, there is a shortage of investment grade properties in the market at the moment with more buyers than sellers. You won't get a bargain if you look for the right type of property – an investment grade property - that will grow at wealth producing rates of return. It is often said you make your money when you buy your property, but it's not because you buy a bargain, it's not because you buy a secondary distressed property cheaply as Robert will recommend, it because you buy the right of the property – one that will grow at above average rates of capital growth, a property that will be in continuous strong demand by owner occupiers and tenants who can afford to and will be prepared to pay you higher rents. Over the years I have had many mentors, and as I explained Robert Allen was one of my early mentors but like with everything in life I've chosen to select portions of his learning the applicable to Australia and discard others that are not. Of course, this is easy for me today with the perspective of close to 50 years of investing – I know what works and what doesn't, but I can understand why beginning investors get lured by the concept of nothing down – remember Real Estate investing is not a get rich quick scheme and wealth is the transfer of money from the impatient to the patient. Now that you've heard that disclaimer, there is so much great information in my interview with Robert Allen, so please let me know and welcome to today's episode of the Michael Yardney podcast. Some of the topics that Robert and I discuss Robert started doing research on how to buy property with little or no money down because he had little money when he started According to Robert, the reason Nothing Down became so popular was because people were so skeptical about it. Robert's

Today's podcast is a little different: it's all about me. This is an interview with me. I hope it will help give you some insights about what makes me tick, what I've learned, what I've done wrong. This interview is with Peter Fritz of the Office Anywhere Podcast. Peter is a client, a successful property investor, and an author who writes regularly on Property Update. Peter has had his ups and downs like all of us have. He went through a midlife crisis, recognized what's important in life, like his family and his children, and he now works in a different way. He's less stressed and closer to his family because now he no longer has a commute, he works at home. That's what his Office Anywhere blog is about, to live and work on purpose. I think some of that is going to come out as he chats with me. So I hope you'll gain some insights and learn some new things from this episode. Topics discussed in Peter Fritz's interview with me: Whether it's been difficult to swim against the tide of get-rich-quick mentalities How Michel got into real estate investing in the first place What can happen when you're overconfident and impatient The importance of investing in oneself The value of perspective The definition of wealth and success How the pandemic is feeding into the desire to build wealth independently The opportunities available because of the pandemic The work from home situation and how it's working for Michael Tools Michael and his team are using to manage their projects as they work from home Whether Michael's team will continue to work from home post-pandemic Michael's heroes, and why they're his heroes Why it's important to listen to people you don't agree with Darker periods in Michael's business journey Where Michael feels most inspired What matters most to Michael these days What legacy Michael would like to leave behind Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Peter Fritz's Office Anywhere Podcast Shownotes plus more here: Methods, Mindset and Masterstrokes of a 45 Year Investor Some of our favourite quotes from the show: "I would rather make more Australians wealthy and help improve our communal wealth and the beauty of our country rather than knock other people." – Michael Yardney "If everything's important, nothing's important." –Michael Yardney "I've also learned not just to read and speak to people who confirm my assumptions and my beliefs." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

One of the interesting benefits I experienced from the prolonged lockdowns during 2020 was that I've been working more efficiently. Prior to COVID-19, I worked from home one or two days a week and from the office the other days. But interestingly, working from home full time made me much more efficient with my use of time. So, how do you make the most use of your time? How do you make sure you're working most efficiently? That's the topic of discussion today in my monthly Build a Business, Not a Job podcast with Mark Creedon. But even if you're not in business, and even if you're not a professional, this podcast is going to be valuable, because for most of us, it seems there's never enough time in a day. However, we've all got the same 24 hours to accomplish a task, and some of us seem to be exceptionally good at it, while others seem to struggle meeting their deadlines. So, my question is, why are some people so much more efficient at using their time than others? And the answer lies in time management. Today, I'm going to share with you how successful people manage their time, so you can make the best use of yours. We all have the same amount of time but some of us squander it, waste it, don't use it efficiently, so my aim today is that at the end of this podcast that you'll be able to see how much time you have in the day and you'll find something in that will help you get more out of your day. #1 Time is your most valuable and scarcest resource You should realise how truly valuable time is. You can lose money and get it back again if you're sick you can often get your health back again but once the time has gone it is gone and is irretrievable. You'd be surprised how much you can achieve in one minute, and your health you could take some deep breath stretch and relax, in your relationships in one minute you can tell somebody that you love them. In business you can come up with a breakthrough idea in one minute. #2 Identify your most important task (MIT) and do it first. What is that project that's going to double the size of your business what is that task that he's going to get you that promotion at work, and then break it down – what domino can I tip over today that will lean on the next one and the next one? Schedule time to work on your MIT – preferably in the morning –– we are at our cognitive best for a two-hour window of time first thing in the morning. #3 Work from your calendar – not a to do list 41% of items that people have on there To Do list never get done it all. A To Do list is the graveyard of important but not urgent items. If you really want to get something done – pick a day, a time, a duration and put it in your calendar #4 There will always be more to dos I first started out five days a week wasn't enough, so I work seven days a week. When I first started out eight hours a day wasn't enough – so I worked 10 and at times 12 hours a day. #5 Always carry a notebook Maybe it's journaling, maybe it's capturing ideas words of wisdom etc Our minds are best used for processing different ideas, not for holding onto information #6 Control your inbox Shut off the notifications on your emails and go to inbox when you want to do it, not when somebody calls you. Process emails three times a day. #7 Schedule and attend meetings as a last resort You may not be in the position that you could say no to your boss, but it is likely you can say no to a lot of meetings or make them shorter meetings, stand-up meetings. If you're most productive in the morning say no to meetings in the morning. #8 Say no to everything that doesn't support your immediate goals. The problem is when you say yes to one thing you're actually saying no to another thing, or many things. #9 Follow the Powerful Pareto Principle 80% of your results will come from about 20% of your activities, so slow down and look at all the work you're doing and then work out the handful of tasks that give you the most results and focus on them #10 Focus on your unique strengths and passions Learn to delegate – remember the 80/20 rule #11 Batch your work Leading consultant Dan Sullivan says entrepreneurs should have focus days, buffer days and free days Free days are days when you don't work – you're resting and recharging. #12 If you can do a task in less than five minutes do it immediately The touch it once principal #13 Productivity is about energy and focus, not time Look after your body, sleep take more breaks We're designed to sprint and have a break 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 Shownotes plus more here: How successful people manage their time revealed – with Mark Creedon | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "We've all got the same 1440 minutes every day." – Michael Yardney "You don't get most of the things on your to-do list done. You never do." – Michael Yar

It's clear that we've worked our way through the COVID-induced recession and the resultant lull in our property markets has now turned the corner and the markets are on the move again. Property predictions are now coming thick and fast. One is that there's an elephant in the room that most aren't aware of. That prediction was made by property researcher John Lindeman, and I'm going to ask him what he means by that. But first, I'm going to give you the answer that I gave to a journalist who recently asked me "why are property values going up at the moment, when wages aren't going up and unemployment is still high?" This should provide you with some insights as to what's ahead for our property markets and help you make your own plans. And of course, I'm also going to share my regular mindset message. Why are property prices rising? This isn't the same as asking why house prices are resilient. Swelling disposable incomes at a time of falling interest rates and therefore lower property holding costs have left many borrowers much better off than they would have been a year ago. And we know that property is a game of finance and if credit is easy and holding costs are low, property values go up. Like the virus itself, the economic consequences of the virus have not hit everyone equally. The people hit hardest by the pandemic tend to be lower income workers more likely to be tenants than homeowners. This has hurt the rental market, especially the apartment market, but not the overall property market. Thanks to government intervention to support jobs, 90% of Australians are still employed. At the same time, many workers have recently seen their pay packets go up because of tax cuts. Australians have also wiped out a lot of credit card debt and stashed much more cash than usual as a buffer against Coronavirus. So, a significant group of Australians have secure income, secure employment, and are in a position to take advantage of low interest rates. The Elephant in the property market One respected researcher believes there's an elephant in the room that many people just haven't been paying attention to and that happens to be John Lindeman Now just to make things clear…John isn't the Elephant – John is widely respected as one of Australia's leading property market analysts. With well over a decade of experience researching the nature and dynamics of various types of assets at major data houses. In a recent blog he suggests that an elephant is about to make his presence felt in the property market and it's a potentially significant game changer. It won't be deterred by rising unemployment, housing finance restrictions, buyer confidence or economic downturns. It has the power to radically alter housing prices and rents, and it's about to be unleashed on our property markets. What is this elephant in the property market and where will it reveal itself? The elephant is the massive movement of people from one State or Territory to another that will result in large changes to our property markets. Before the pandemic there were twice as many people moving as there were new residents arriving or being born here, but there's much more to it – these relocators pack a double whammy. Not only does every moving household increase demand by needing a new home where they move to, they leave an empty one behind, increasing housing supply where they move from. Even when our State borders reopen, the potential effect of these relocations is still likely to go unnoticed. This is because many statisticians and economists quote and rely on net interstate migration numbers, not the total number arriving or leaving. Net interstate migration hides changes in housing needs and preferences Where will the winners and losers be? The most recent housing approval figures show that while approvals for detached dwellings has increased, there is actually very little in the pipeline for new apartments. Developers are often blamed for building unsightly, even unsafe high-density apartments and encouraging speculative investment, yet housing development has been the means by which our cities and towns have grown and been rejuvenated. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us John Lindeman – Lindeman Reports Shownotes plus more here: Why on earth are property prices rising + The elephant in the property market with John Lindeman Some of our favourite quotes from the show: "Now all credible economists agree that our property markets are going to enjoy a period of strong capital growth." – Michael Yardney "I couldn't go from being unknown in the real estate community to being the most respected expert straightaway." – Michael Yardney "What I'm trying to say is at the time, I set myself some audacious goals that were unrealistic for me." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discove

We've worked our way through the recession, the property markets are moving on, and more Australians are looking at getting into property. So today, I want to share three segments with you that will help make you more successful. First, I'm going to talk about 6 learning fees I don't want you to pay. These are costs that investors and homebuyers have paid to the market, or marketers, or spruikers, and if you can avoid paying them, there will be more money in your pocket. Next, I'm going to have a chat about some new urban trends with a leading demographer, Simon Kuestenmacher. We're going to talk about how the pandemic has forced all of us to reevaluate how we live, and what that means for you for your own lifestyle, but also as a property investor and a business owner. Then finally, in my mindset message, I'm going to talk to you about what I believe success is – and what it isn't 6 Learning Fees Here are 6 "learning fees" I've seen investors pay: 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 2 years 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 potentially into six figures when you take into account lost opportunity costs. The "no capital 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. A three-percentage point difference might not seem like a lot but over the years this could add up to a learning fee easily in the hundreds of thousands of dollars. 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 the property blogs would suggest. Perhaps you bought a property that needs a significant renovation in the order of 10 percent of its purchase price. But then everything ended up costing more than you expected, and the project ran over time, which increased your holding costs substantially. 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 (oh dear) 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 percent or so 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 actually is and offer well below an acceptable price. You then get angry that the vendors are being "greedy" and storm off, not prepared to negotiate at all. This learning fee here is about your own ignorance and not remaining objective and basing your negotiations on cold hard facts such as recent comparable sales. 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 selling agents who are highly trained negotiators who are taught how to get the top dollar for their clients – the seller. Some highlights from my conversation about urban trends with Simon Kuestenmacher Now that we live in a pandemic world with less travel, we're seeking more entertainment within walking distance. We have a large share of young people living in apartments, that spend time outside of the home because apartments aren't ideal for socializing and exercise That's going to shift in the next ten years as those young people grow older and move to houses. They'll be looking for neighborhoods that allow them the same amenities

The way we live in Australia has changed. We've traded backyards for balconies and courtyards and this has resulted in around one in five Australians living in apartments today. That's up from one in seven in the 1990s. According to the Australian Bureau of Statistics, of the ten million or so dwellings in Australia, around 10% of these are what they call attached dwelling apartments built in capital cities over the 17 years or so to December 2018. And the trend to medium and high-rise living is only going to increase. So, are apartments good investments? The answer is yes and no. Not all apartments are the same. Some make great investments, substantially increasing in value over the long term. But many, especially those in high-rises built over the last 15 years or so, will continue to underperform. Today, I'm going to dissect a recently produced report by Stuart Wemyss on the performance of investment grade apartments, and there are some very valuable lessons in there for property investors and even potential buyers. And of course, I also have my regular mindset message to share with you today. Highlights from my conversation with Stuart Why Stuart decided to research the performance of investment-grade apartments Typically, houses tend to have growth spurts that last 5-10 years In Melbourne, between 1997 and 2010 apartments grew at 10.7% Apartments can provide very attractive growth Between 2010 and 2020 the median growth rate has only been 2.7% -- just a touch above inflation Why have apartments underperformed? The supply has increased significantly With the demand keeping up with the supply, there's not been much room for overperformance The intrinsic value of apartments must have increased, but the increase is being masked by all of the new apartments coming online Local buyers are dominating the market, which means that developers need to build a higher-spec apartment This leads to higher costs for the next round of apartments Lifestyle is going to be a big factor in the neighborhoods people choose going forward This will push older-style apartments – the kind that used to be called flats – into a renaissance It's probably not fair to compare apartments to houses Houses are a better proposition if you're in the financial position to afford one However, quality is always crucial. A higher quality apartment in a desirable area might be preferable over a lower-quality house in a less desirable location Location does a lot of the heavy lifting when it comes to property value Apartments have underperformed, but they do have periods of cyclical growth Melbourne and Brisbane are set for the next stage of increased apartment values Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Get Stuart's special report - A performance review of investment grade apartments Shownotes plus more here: An unbiased performance review of investment-grade apartments with Stuart Wemyss Some of our favourite quotes from the show: "The cost of new apartments is going to be much, much higher in the next round of them." –Michael Yardney "It's hard to subdivide where everyone wants to live, in the middle ring suburbs." –Michael Yardney "Firstly, most of the things we worry about just don't happen, and secondly, even if they do happen, worrying doesn't really help, does 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

Life after coronavirus will never be the same as before. We're waiting for a new beginning, and the forecasts for 2021 are starting to appear one by one, and some of them are more optimistic than others. Today, I'd like to share two sessions with you that will help you make the best of 2021. First, I'm going to share three tips for 2021 if you're interested in getting into property investment, and then I'm going to have a chat with Dr. Nicola Powell, senior research analyst at the Domain Group. We're going to talk about the trends that Domain has noticed and what's ahead for property. At the end of today's podcast, you'll be well equipped to have a better understanding of where we are and what's ahead. I'm also going to share my regular mindset moment with you. 3 Tips for 2021 Property investment is a process, not an event. To be successful with property is more than just doing some research on the internet. Searching for a property is very different from researching the property markets. Successful investors have a long-term strategy to grow their wealth. They have the correct asset protection and finance structures in place, and they have a good team around them. Location will do 80% of the heavy lifting of your properties. Some locations in the last decade have outperformed others by 50% to 100%. How do you identify these locations? It has a lot to do with demographics. Look for gentrifying locations, lifestyle or destination locations, locations with a high walk score, lots of amenities, and locations where the tenants rent for lifestyle reasons and can afford to pay more. You can't pick the top or the bottom of the property market, so don't try. Rather than trying to time the market, you should buy the best asset you can and hold onto it for the long term. One extra tip – don't be scared of taking on debt in today's market, because debt is not a problem. Understand the three types of debt – bad debt, necessary debt, and good debt. Highlights from my chat with Dr. Nicola Powell Two property highlights of 2020 It took a pandemic to reimagine work lives The reaction of the housing markets when faced with social distancing rules and lockdowns Many workers will choose to continue working from home if they have the option The use of the term "home office" has increased since the beginning of the pandemic There are other differences in the searches for neighborhoods – specifically, more lifestyle words are being searched Interest in a second home may trend upward post-pandemic Dire predictions about the property market didn't come to fruition. Historically, property prices fare relatively well against negative economic shocks House prices don't necessarily fall during recessions Rental markets have seen more disruption than sales markets Likely a shorter holiday period in Melbourne Other capital cities have been performing near normal Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Property Investment tips for 2021. Is this changing property trend permanent with Dr. Nicola Powell Some of our favourite quotes from the show: "I believe our capital cities have passed the bottom, and when we look back next year, you're going to see that in mid-October this year, in general, our property markets have turned." – Michael Yardney "Your money's going to run out long before the opportunities will." – Michael Yardney "Who you are today is a result of all the decisions you've chosen to make and the decisions you've not chosen to make in the past." –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 invest your money to give yourself the highest likelihood of reaching your goals. But how do you know if your investment is actually helping you reach your goals? And what do you do if your investment properties are underperforming? That's what I'm going to discuss today with Brett Warren, and our conversation will be informative for both new and experienced investors. Then, in my mindset moment, I'm going to share some advice from Bill Gates. Are your properties achieving the results you were expecting? Will it get you where you want to get to? The first thing to understand is what your overall strategy is and how the property fits into that strategy. Then you need to know whether the property is performing as expected and whether it's outperforming the market. Ask yourself if you would buy the property again if it were on the market today. Are there improvements that you could make to the property to increase its value? How is the property going to perform going forward? Ask yourself why you chose this property – often because it was recommended by someone with a vested interest. Where are the locations that will outperform? Places where people have multiple streams of income and more wage growth Gentrification Infrastructure Livability and amenities – people will be prepared to pay a premium to live in places where they feel safe and comfortable, especially post-COVID-19 Good investment properties need multiple pillars. Just one of these factors isn't enough. 4 Reasons why properties under perform Timing – bought at the top of the cycle Price – paid too much for the property Location – if the location is under performing, the property will be as well Property – poor selection, something wrong with the property If the timing or price was wrong, but the property is right, it might just be a question of waiting. But if the property isn't going to improve in value, it's time to sell. Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Brett Warren - Metropole Property Strategists Shownotes plus more here: What you do with a dud property. How do you know if you should sell or hold, with Brett Warren Some of our favourite quotes from the show: "I think it's important to understand what motivated them, what their thoughts were when they chose that particular property. " –Michael Yardney "We frequently say it takes the average property investor 30 years to become financially independent, that's because in the first 10 years you make all those mistakes." – Michael Yardney "If you can only own 2 or 3 properties, you've got to own the best ones you can." – 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 looks like we worked our way through the recession, and slowly but surely, the coronavirus pandemic is coming under control. That means that the recession that we had was very different from previous recessions. But what does our recovery look like? That's what I'm going to talk about today with Pete Wargent. We'll discuss what's ahead for our economy, why the recession panned out as it did, and how that's going to set the scene for the next stage of Australia's economy. Then, in today's mindset message, I'm going to discuss the concept that yes, money can buy happiness… with some qualifications. How will this recovery differ from previous recoveries? Most economists predicted a recession due to the pandemic, but they differed on what it would look like. Today we're going to discuss why this recession, that we've now worked our way out of, and the coming recovery are different from previous downturns. We may no longer technically be in a recession, but it's not all over yet. We have a long way to go to get back to pre-COVID levels Prices have stopped falling, even in Melbourne The reserve bank has released further interest rate cuts, quantitative easing, cuts in fixed-rate mortgages There are still issues relating to mortgage deferrals The response from the government to this recession has been very different from the responses to previous recessions There are actually more dollars in the economy because people can't take vacations and spend money overseas Some of the changes in working – such as more working from home and online – are likely to stick A V-shaped recovery is probably too optimistic But Australia is still better placed than many other countries for a strong rebound next year Sydney and Melbourne will lead the way in double-digit housing price growth next year, with a strong performance in Brisbane as well However, some sections of the market will still lag, such as high-rise apartments in the CBD Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Pete Wargent -- Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: The recession is over, here's how the recovery and property will be different, with Pete Wargent Some of our favourite quotes from the show: "I think one of the government's jobs is to look after its citizens." – Michael Yardney "Interest rates are not going to go up for at least three years, and that gives people a level of security." –Michael Yardney "Generally speaking, having enough money for the basic necessities in life, as well as your wants and needs, usually means a happier life." – 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 signs that the modest coronavirus-induced housing correction has come to an end. Nobody's going to ring a bell telling us the market's bottomed, but I'm sure when we look back in 12 months' time, we're going to find that the value of some properties has increased significantly and our property markets turned the corner in October 2020. But as usual, some segments of our property markets will continue to languish. Now I'm not denying that we're still going to have some challenging times ahead. We are. But the recovery of our home values has been underwritten by a number of factors that we're going to discuss in today's podcast as I have a chat with Stuart Wemyss. Stuart's going to talk about what kinds of properties are going to lead the recovery in 2021 and why buying the right property next time around is more important than ever. And then, in my mindset moment, I'm going to share with you one of the most important lessons I learned from one of my mentors as we talk about the miracle of personal development. At the end of today's podcast, I hope you'll have a bit more clarity about what's going to happen to our property markets inn 2021 and what you need to do to position yourself correctly. What properties will lead the recovery in 2021? The major media has done a backflip on their predictions earlier this year of 10, 15, 20, and even 30% drops in property market values. One of the people who has forecast things over the past year and gotten it right most of the time is director of Prosolutions, Stuart Wemyss Highlights from our conversation: The market didn't take as much of a hit as many predicted that it would this is because: The government absorbed most of the cost The people who were hit hardest by the coronavirus pandemic were mostly younger and lower income There are two major sectors to be concerned about: Regions dominated by low-income earners Inner city apartment markets The loan pause data shows that 9 out of 10 of the greatest loan pause suburbs have been in southeast Queensland This might be because the area was heavily impacted by the reduction in tourism It's also possible that most of the loan pauses are out of convenience rather than necessity. Since prices are down on the lower end of the market, why not get in on that and get a bargain now? There are two types of tenants in rentals: lifestyle tenants and necessity tenants It's the properties occupied by tenants that rent by necessity that are on the lower end of the market These properties don't offer much capital growth in the medium to long-term The tenants may be living week-to-week, which makes it less likely these properties will be profitable Lending criteria will soon be lessened. This is a game changer for property markets Interest rates are low and probably going to stay low for several years to come This decreases the risk of taking on debt and makes it more affordable Lower interest rates will probably have a bigger impact on the top end of the market Choosing the right first property is important because good decisions compound and lead to future good decisions Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Some of our favourite quotes from the show: "Interest rates are likely to have a larger impact at the top end of the market, the luxury end of the market." – Michael Yardney "Instead of asking about your work, your job, "what am I getting?" instead you should be asking yourself "what am I becoming?"" – Michael Yardney "If somebody hands you a million dollars, you better hurry up and become a millionaire." – Michael Yardney Shownotes plus more here: This is the type of property that will lead the recovery in 2021 with Stuart Wemyss 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 you wondering what's ahead in property for 2021? Maybe you'd like to know what other Australian property investors plan to do? Well, that's exactly what we discuss in today's show as we unpack the results of this year's Property Investor Sentiment Survey. You'll hear what 1,500 Australians feel about our current real estate markets and what they plan to do. And you'll also hear what COVID did to their property plans and how if at all it changed their strategy And to discuss the results of this year's survey, I'm joined by Brett Warren. Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would-be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. And as usual I'll share a mindset message with you – because if you can change your thinking it could change your life. Highlights from the Sentiment Survey Has the coronavirus induced recession affected you? Are you considering moving to live in a different location because of COVID-19? Has the pandemic changed your strategy or approach to property investing? These are some of the Covid-19 related questions we recently asked 1,500 Australian property investors and would-be investors in our annual Property Investment Sentiment Survey, and some of the answers were enlightening. Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would-be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. So if you're wondering what's ahead in property for 2021 you'll enjoy today's podcast because you'll hear what 1,500 Australians feel about our current real estate markets and what they plan to do. And to discuss the results of this year's survey I'm joined by Brett Warren national Director of Metropole Property Strategists. These are some of the highlights of the survey that Brett and I discuss today: Survey respondents already owned an average of about 2 properties each Survey respondents who don't already own property are planning to get into the market in 6 months to 2 years About half would consider rentvesting – renting for themselves while owning an investment property. Most respondents are not considering moving because of COVID-19 Only 3% of respondents did not have an investment strategy 74% of respondents think that now is a good time to invest Only 6% said they're worried about the future of property investing Only 10% of respondents said they had applied for a mortgage repayment holiday for either their home or investment properties because of COVID-19. One-quarter of the respondents had received a request for a rental reduction or holiday because of COVID-19 from the tenants While 20% are pausing their investment plans until the situation became clearer, the majority of respondents are not going to change their plans and 14% are going to take advantage of the current climate to enter the market sooner. 50% of the respondents were planning to buy an investment property in the next 12 months 38% want to buy a property with value-add potential of renovation or development Close to half of respondents didn't see boom conditions. Most had a realistic view and saw good long-term conditions Ultimately, most respondents have a realistic and positive view of the year ahead. Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get the results of the 2020 Property Investor Sentiment survey here Shownotes plus more here: Here's what 1,500 investors think is going to happen to property in 2021 - Our Annual Property Investment Sentiment Survey Some of our favourite quotes from the show: "No one's born talented at making excuses." – Michael Yardney "As you go in this journey we call life, you're going to get the chance to back out and make excuses or not. You have a choice." – Michael Yardney "One thing you can't move, change, or improve is the location of your property." –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're probably listening to this podcast because you're interested in property investment, but if you're like most people, you're also interested in more success in various elements of your life, as well as more money. We're going to have two separate sections to today's show. In one I'll explain to you why wealth is about what you don't spend. In the second segment, I'll have a chat with Tom Corley who studied millionaires and poor people for five years, and one of his conclusions was that being rich comes down to only two things. Is it really as simple as that? Clearly, it's not that simple or more people would be millionaires. But Tom has a great message, and at the end of today's show, you'll know more about the rich habits you want to develop and the poor habits you should leave behind. Why Wealth is About What You Don't Spend Some people use exercising to justify food binges. They feel that they've done the exercise, so now they deserve a treat. The same kind of thing happens with money. Even though Australians earn more than they ever have before, financial gains made by higher wages are often lost due to higher spending. Financial well-being is in the gap between what you earn and what you spend. Savings relies on your ability to earn an extra dollar, acknowledge that it would feel great to spend it, but to save it anyway. In other words, delayed gratification. Earning more money is an important part of building wealth. But it's not enough by itself. Earning more won't help you build wealth if you spend every extra dollar you make. Learning to contently live with less has the same effect as growing your income. And it's often easier for you to control. Building wealth is a negative art. It has a lot to do with actions you don't take and things you avoid. Everything has a price. The price of building wealth isn't just the work of earning more money, it's also avoiding the urge to spend. Becoming Rich Boils Down to 2 Things The first thing you have to do to become rich is to accumulate wealth. This isn't easy and it will take time. The second thing you have to do is keep the wealth that you accumulate. How can you do these two things? With the right habits. One of the first thing you can do is start by setting some goals for yourself. Use visualization. Your brain thinks in pictures. When you visualize a goal that you want to achieve, you see a picture in your brain and starts looking for ways to get to that picture Once you've started to set goals, you have to start pursuing daily growth. Become a bit better every day than you were the day before. Don't compare yourself to other people, compare yourself to who you were before. How should you pursue daily growth? A common habit of rich people is reading. Rich people do specific, focused reading every day, usually for about 30 mins. Another way is to practice your skills outside of work. When it comes to keeping your wealth, delayed gratification is important. Spend less than you earn so that you can put your money to work for you. Stay optimistic and open-minded. Having a positive mental outlook leads to looking for solutions to problems and listening to other people's ideas. You need to have a strategy that you're following for saving and building wealth Wealthy people are also prepared to pay for coaches and mentors Links and Resources: Tom Corley - Rich Habits Michael Yardney - Metropole Get your own copy of our international bestseller Rich Habits Poor Habits Shownotes plus more here: Here are 2 proven ways to get rich | Rich Habits, Poor Habits Podcast with Tom Corley Some of our favourite quotes from the show: "Spending more when your income rises is as tempting as eating more after you exercise. It feels like you've earned it." – Michael Yardney "Don't compare your chapter one with somebody else's chapter twenty." – Michael Yardney "The ones who are optimistic, they do better in life." – 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 almost at the end of another year. And what a year it's been! 2020 started off with predictions of a fantastic year in property. Remember we were coming off the end of 2019 when property markets were very strong. Then the predictions changed to doom and gloom because of COVID. And it wasn't just the naysayers – economists were suggesting property doom as well. Now it's been said that the role of an economist is to explain to you tomorrow why what they predicted yesterday didn't come true today. This is a very apt description of the behavior of many economists and all of those other experts chasing headlines who were very noisy in the media with their attempts to exploit the pandemic for publicity. But those of you who saw the dark side, you were wrong. We've had great support from incentive programs from the government, and now it's become clear that our property markets have turned the corner and will perform very strongly over the next couple of years. However, life is still going to be very different going forward, and that's part of what will discuss on today's episode of the Michael Yardney Podcast. I'm going to share some lessons that you can learn from what happened to airline pilots (and it's probably not what you think.) Then I'm going to have a chat with Brett Warren about the suggested trend toward working from home. And finally, I'm going to share a mindset moment with you that may help you think differently about life and your situation. What the Bad News for Airline Pilots Means for You Qantas lost billions of dollars and has shed thousands of employees. Virgin went broke and similarly, its employees, including pilots, are facing layoffs or job losses. While a gate attendant might easily transition into a customer service position in another industry, what does a pilot to do? How do their special skills translate into a new industry? Of course, pilots aren't the only people with high-paying, prestigious jobs based on skills that are narrowly marketable should the industry they're in slow down. Chefs and entertainers are suffering. Even many surgeons were temporarily put out of business to preserve medical capacity for COVID victims. It can happen to anyone with very little warning. Do you have skills that are transferable? And if so, which industries are expanding? Is there even room for you? If you think about it, it's really no different than when an illness, accident, disability, or any severe life event takes you out of action. When you trade time for dollars … even for a high income…you are vulnerable. And even if you have insurance or some money saved for a rainy day – this might not absorb the entire impact. Of course, the key to security and resilience is to have a cash machine. By that I mean a portfolio of investments that provides you with enough income to live on … and more … whether you work or not. And the right time to start building that cash machine is right now. Actually, that's wrong! The best time to have started building your property portfolio, your cash machine, would have been 20 years ago. The second-best time is right now. Wherever you are now, it's smart to use what you have to create resilient wealth to shelter yourself from tough times … whether they're on the horizon or on your doorstep. The good news is …. properly structured property portfolios have a strong track record of resiliency through challenging times. The bad news is it takes money, knowledge, relationships, credit, and in particular, time to build a resilient portfolio. I don't know your personal circumstances; maybe all you can do at the moment is hunker down and get through the challenging times we are going through. But for many Australians now is the time to get all your ducks in a row and look after your future. Now is a good time to prepare to take action and set yourself up to take advantage of the next stage of the property cycle which will come sooner rather than later. Working from home revolution with Brett Warren We've heard a lot in the media about the working from home revolution that will change where and in what homes Australians want to live. Will this trend have an impact on property markets? Brett Warren did the research and found out some interesting things. For one thing, about a third of Australia's workforce works from home regardless. For another thing, only about 36% – 37% of Australia's jobs can actually be done from home. This means that even if the trend of increased working from home continues, it's going to remain a minority trend. There's only so much room for increased numbers of work from home workers in Australia's workforce. The other 63% of the workforce will continue to follow historical trends. So why fight the big trends? We already know where 63% of the workforce will want to be. Rather than chasing minority trends, property investors should focus on known and proven historical trends, supported by facts, research, and data and not the latest headlines. Li

How do you pick the turning point of the property market? And are we there yet? With so many mixed messages in the media today, I'm going to spend today's show explaining my thoughts about what's ahead for the property market so that at the end of the show you'll have a better idea of what's to come. I believe there's a window of opportunity before we have what I call a "perfect storm of influences" that will create strong capital growth in our property markets. And before you say "oh, Michael's an eternal optimist," stay with me because I want to share with you what locations are going to outperform moving forward and what type of properties will be popular post-pandemic. And of course, I also have a mindset message to share with you. Are we there yet? The messages in the media have changed in recent times. Today the common theme is that the property market will turn later this year or early next year, with many asking, "have we reached the market bottom yet?" But as they say – no one rings a bell when we reach the bottom, so how do you pick the turning point in the property market? If you're a home buyer or property investor and you have a secure job and your finance organized, now is an ideal time to purchase your next property countercyclically knowing your downside is minimized and your upside is maximized. However, here are some of the indicators the research team at Metropole watch carefully looking for a signal that the market could be turning. The economic fundamentals Our property market doesn't work in isolation, so we keep an eye on the macroeconomic factors such as the world economy and Australia's economy. We're probably out of the recession by now but won't know the official figures for some months yet. Finance Recognizing that our property markets are driven by the availability of credit we keep track of the ABS data on credit growth which is a leading indicator, turning positive before the markets do. Finance approvals are moving in the right direction, and the recent announcement of sweeping changes to remove overly restrictive lending rules will give more people access to easier credit. At the same time many Australians are saving more than they have for a long time and this, together will historically low interest rates, will encourage more Australians to buy their first home, upgrade their home or purchase an investment property. Market Sentiment Increasing consumer and business sentiment point to good times ahead. Supply and demand While Australia's population growth will stall in the short term due to lack of immigration, there is currently a lack of good quality property on the market. A-grade homes and investment-grade properties are selling quickly due to the normal flight to quality which happens after economic shocks. On the other hand, there is an oversupply of apartments in some locations, particularly in our CBD's, due to the lack of buyer interest from investors and tenant interest in the absence of overseas students and visitors. To keep an eye on the state of our property markets we track the following: Housing credit growth Google and Property Portal Search volumes Days on Market and Vendor Discounting Asking Prices Auction clearance rates We're setting ourselves up for a perfect storm in property There will be a perfect storm leading to a period of strong property price growth in the second half of 2021 and into 2022 due to the following: Federal Government spending, initiatives, and infrastructure projects State Government spending and infrastructure initiatives Historically low interest rates The security that interest rates will remain low for a number of years Easing of credit approval criteria A return of international demand for Australian property A return of immigration and students to Australia is also possible This means that there will be a window of opportunity between now and the second half of 2021 for savvy investors to really amplify their wealth position. There hasn't really been as good a time to buy counter-cyclically for well over a decade. But be careful – our property markets will remain fragmented and not all properties will make good investments. As always correct property selection will be critical. What is going to be the right type of property? We're going to have a two-tier market. Higher-end properties, more expensive properties in middle and inner rings of capital cities are going to increase more. The right type of property is going to be different than it was before the pandemic. Some will pay more for properties with pandemic appeal. Apartment living might fall out of favor. Standalone dwellings that easily allow for reducing contact will be in demand. Low-rise, low-density apartments, what we used to call flats, might be in demand. People will pay a premium for the ability to have social isolation. Buyers will also want to be able to separate work and living space. That may mean a separate home office or Zoom room. Neighborhoods will also

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

When I wrote the first edition of my book How To Grow A Multi-Million Dollar Property Portfolio - in your spare time, way back in 2006, it was outsold by another author who promised the secret to going from 0 to 230 properties in three and a half years. Subsequently, the same author wrote another book, 0 to 260 properties in seven years. Now who wouldn't want to be able to achieve that? But the question is, is that realistic? And the answer is - No. And the author didn't own that number of properties either. He was using a form of options financing that is now illegal (not that I'm suggesting he did anything illegal at the time.) Anyway, there are still people out there claiming that you can build significant property portfolios in a short amount of time. But my guest today, Daniel Gold, who's a finance broker, will explain why owning 50 properties is virtually impossible today. Now clearly, it's not how many properties you own that's important. More important is the size of your asset base and how hard your money's working for you. I'd rather own one shopping center than 50 properties in regional Australia. When we dug into the latest Australian tax office data that showed how many property investors were in Australia and how much they owned, the statistics were telling. Most property owners never get past their first or second property. Less than one percent of all property investors owned 6 or more properties. That's it. In today's conversation, I'll show why it's really hard to grow a portfolio of 50 properties. Then, after my conversation with Daniel Gold, I'll share a mindset message with you. Why is it harder to own 50 properties now? The credit environment is now completely different from what it was 10 years ago This is largely due to the National Consumer Credit Protection Act 2009 The NCCP changed the way banks assess rental income and expenses Most banks are discounting your rental income by 20-30% The bank assumes that interest-only commitment is a principle and interest commitment Banks buffer up the interest rate by as much as 2.5% more than the actual rate You need more cash flow to hold onto your properties than you did in the old days Right now, a cash-flow neutral or even cash-flow positive property will hinder new borrowing in some way Everyone has a borrowing or credit ceiling Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan. Click here and have a chat with us Daniel Gold, director Long Property Daniel Gold's article - Sorry – owning 50 properties is near impossible now Shownotes plus more here: Sorry, owning 50 properties is almost impossible now with Daniel Gold Some of our favourite quotes from the show: "I guess the reason behind this is, some people were lent a bit too much money, they got a bit ahead of themselves and got themselves into financial trouble." – Michael Yardney "You've got no choice at the moment; the banks are actually forcing us to become good money managers." – 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

Maybe you're rich. Maybe you're poor. Maybe you've experienced both at different points in your life. There is no doubt the divide between the rich and the poor is only becoming bigger. By the way…if you haven't figured it out yet, being wealthy isn't all about money. So what's the difference between the rich and the poor? That's the question that I was asked by Andy Hart when I was interviewed on his Maven Money Podcast. Today's episode is a recording of his interview with me where we discuss my book Rich Habits, Poor Habits that I wrote with Tom Corley. I'm sure you'll get a lot out of his probing questions of me as we talk about the difference between the rich and the poor mindset. Highlights from my conversation with Andy Hart My background in property investment How COVID-19 caused a recession in Australia How COVID-19 has affected being a landlord in Australia Landlords can put mortgage payments on hold for awhile Tenants can seek rental relief How poor money habits keep people in the rat race What differentiates the rich from the average person The rich have learned to spend less than they earn They understand the concept of delayed gratification The know the difference between assets and liabilities The five levels of wealth Level 0 – Financial instability: not even on the hierarchy, no reserves Level 1 – Financial stability: The most basic level of wealth. Some savings, insurance, can handle an unexpected challenge as long as it doesn't last too long Level 2 – Financial security: Accumulated enough passive income to cover the most basic expenses, can maintain a basic lifestyle if you stop working Level 3 – Financial freedom: Accumulated enough assets to create enough passive income to pay for the lifestyle you want, more than just the basics Level 4 – Financial abundance: Financially free, can give back to the community, can train their kids to get to the next level Financial abundance means not just having enough wealth for you, but having generational wealth as well Whether we're exiting the golden block of time for real estate wealth creation The wealth creation machine Why Rich Habits, Poor Habits is the book I'm most proud of Mistakes that crop up frequently in property investment How to handle a partner who isn't interested in growing wealth The difference between being rich and being wealthy Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Andy Hart – Maven Adviser Maven Money Podcast Shownotes plus more here: Here's why is the gap between the Rich and the average Australian widening – with Andy Hardt Some of our favourite quotes from the show: "In my mind, if you don't have the right mindset, and you suddenly come into money, you lose it." --Michael Yardney "The first thing is to invest in your financial education, because as we've said a couple of times, most people don't even know about this." -- Michael Yardney "You can't driver around in a Lamborghini with the engine of a Hyundai in it, so you've got to upgrade your wealth operating system." -- Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What's ahead for our property markets? It's hard to make predictions, especially about the future. It's even harder to predict the endpoint of a moving target. Yet there is a palpable change in property sentiment happening. Earlier this year, there were a number of dire predictions suggesting property values would plummet. But now, most of the pessimists have changed their minds and backtracked on their forecasts. Australia survived the coronavirus better than many countries, and despite a recession, rising unemployment, and Melbourne's severe prolonged lockdowns, the property markets have remained resilient. Recently, there have been 2 significant game changers that have altered my view on what's ahead for property markets in 2021 and 2022, and that's what you're going to hear about in today's episode, which is an audio recording of my Masterclass. We're also going to talk about which areas you should be investing in, and which areas you should avoid. The Perfect Storm for the Property Market I believe we're setting ourselves up for a perfect storm in the property market in 2021 and 2022. Back in March, I suggested that A grade properties wouldn't drop much in value during this pandemic – maybe 5%. I was correct. I suggested that B grade properties – not investment-grade properties – would drop around 5-10%, and that was pretty right also. And I suggested that C grade properties wouldn't be moving at all. And, right now, we're seeing a fallout in off-the-plan market and inner city apartment market. Only certain segments of the market suffered. I was able to get those predictions right because I've been through many cycles. Most of the credible economists who had dire predictions at the beginning of the pandemic have changed their stance and gotten more positive at this point. How come? Why is the coronavirus-induced housing correction coming to an end? There are several reasons. House prices rise quickly but slide slowly. Property prices rise quickly in a boom, but when buyer demand falls, potential sellers hold on instead of dropping the price and devaluing their property. There were very few forced sales during the pandemic because the government and banks threw lifelines to owners. Renters have been harder hit than homeowners. And finally, we're not all in the same boat. Unemployment is high, but not everyone is struggling. While I was always positive that our property markets were going to pick up, recently two major factors have underpinned the property market. These two factors will lead to the perfect storm that will have property markets performing very strongly in 2021 and 2022. The first was the announcement of sweeping changes to remove overly restrictive lending rules. This will give more people access to more credit, enabling them to get into the market. The other big gamechanger is the budget. It's calibrated to create jobs and promote consumer confidence, which will encourage buying and investing. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan. Click here and have a chat with us Watch the Masterclass – get all the details here Shownotes plus more here: The latest research has changed my view on what's ahead for property Some of our favourite quotes from the show: "It's becoming increasingly clear that this modest coronavirus induced housing correction is coming to an end." – Michael Yardney "Easier availability of credit is going to flow in through the system and push up property values." –Michael Yardney "Hot spots tend to be short-term areas of growth. You've got to dig deeper and look for areas of gentrification that give long-term capital growth." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Inspirational quotes trigger something within us when we hear them and read them. They activate our emotions and sometimes when they resonate with us, they increase our pulse and get our creative or critical thinking juices flowing That's one of the reasons why I often share quotes from already very successful entrepreneurs with Mark Creedon, founder of Business Accelerator Mastermind in our monthly Build a Business Not a Job podcast. Today will be discussing some quotes from Richard Branson. Even if you're not a Richard Branson fan, and even if you're not in business or professional practice, today's show will be for you because I believe there are some great benefits you can reap by listening to inspirational quotes. Maybe when you hear Mark and I dissect some of Richard Branson's quotes you'll get a different or better angle on a particular subject. Maybe you'll get an insight into the thoughts and teachings of somebody a little wiser Maybe won't learn something new but the repletion of words will remind you of something you already know and hopefully it will trigger something within you to get you back on track or further down the track. Even if you're not a fan of quotes I hope you enjoy today's show because if you want to become more successful in life whether it's in business, entrepreneurship, investing or just simply in your relationships. 15 intelligent Richard Branson quotes Richard Branson needs no introduction; he is the daredevil entrepreneur who is best known as the founder of Virgin Group. If you're looking for inspiration, it's interesting to know that in school, Branson struggled with dyslexia and couldn't really adapt, so at 16 he decided to drop-out of school and start a youth culture magazine called "Student". The magazine was the starting point for a humble music store called Virgin Records. Today Branson has a net worth of over $4.9 Billion and having more than 400 companies, he is one of the most highly respected CEOs in the world. "Screw it let's do it." Instead of waiting for the perfect moment, just get started and get it done. "There is no greater thing you can do with your life and your work and follow your passions in a way that serves the world and you." If you're not passionate about your work, maybe it's time to think about making a change. "When you're first thinking through an idea, it's important not to get bogged down in complexity. Thinking simply and clearly, it is hard to do." If you wait until every possible detail is covered, you'll never get around to doing it. "If you don't succeed at first, there is no need for the F word (failure). Pick yourself up and try, try again." Failure is part of the process. Learn from it and move on. "You don't learn to walk by following rules. You learn by doing, and by falling over." "Luck is what happens when preparation meets opportunity." If you're not prepared and you don't have the right mindset, luck will pass you by. "Don't become a slave to technology – manage your phone, don't let it manage you." It's fine to use and enjoy technology, just don't let it take over. "Chance favours the prepared mind. The more you practice, the luckier you become." The more time you spend focusing on what you want to achieve and practicing the skills you need, the more opportunities will find you. "Life is a hell of a lot more fun if you say yes rather than no." Don't let negativity or negative people limit you. "A business has to be involving, it has to be fun, and it has to exercise your creative instincts." You'll attract more clients, customers, and opportunities if you're enjoying yourself. "I have always believed that the way you treat your employees is the way they will treat your customers, and that people flourish when they are praised." "Hard won things are more valuable than those that come to easily." You don't tend to value things that come too easily "How slim the line is between genius and insanity and between determination and stubbornness." In order to be successful, you have to be determined, but you also need to know when to quit. "I will continue questioning, questioning, questioning. I will never completely get to the truth, but I want my life to be one long strive to get there." Hold on to your curiosity. It will make you more innovative and creative "Capitalism – which in its purest form is entrepreneurism even among the poorest of the poor – does work; but those who make money from it should put it back into society, not just sit on it as if they are hatching eggs." Look for ways to help other achieve success too. 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 Shownotes plus more here: Learn some lessons from these 15 intelligent Richard Branson quotes with Mark Creedon Some of our favourite quotes from the show: "Analytical people definitely have their role and can become very successful businesspeop