Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

Taking control of your personal finances, becoming wealthy or successful in property investing, is simple, but it's not easy. That's not a play on words. It's simple if you know how, but it's not easy because a lot of investors make mistakes. They're fussed about the timing and the price they're going to pay for their property, but those factors may not matter as much as you think. That's the topic of today's chat with Stuart Wemyss, who's going to explain that it's what you buy that matters, not when or how much you pay. We're also going to talk about the characteristics of investment-grade property and the changing world of finance. Then, in my mindset moment, I'm going to talk to you a little about an important subject – failure. Highlights from my chat with Stuart Ego plays a big part in what and when we buy: everyone wants to look smart But we need to look more at the factors that the evidence says are important And less at the factors that are just based on emotion or gut feeling An advisor should be able to verify or substantiate their methodology Stuart looked at the outcomes of both buying below intrinsic value and buying above intrinsic value High performing investment-grade properties were less sensitive to how much you paid for the property Investing is a long game and quality is everything 3 attributes that Stuart believes properties need to be investment-grade Strong land value component Scarcity Past growth of the property and similar nearby properties Common traits of successful investors Consideration of risk Focus on quality 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 article referred to in the Podcast - Property market expectations & the impact of Coronavirus Stuart's Book – Rules of the Lending Game Shownotes plus more here: It's What You Buy, Not When or How Much You Pay, That Matters with Stuart Wemyss Some of our favourite quotes from the show: "We both agree that cash is important to keep you in the game, but it's capital growth that's going to get you out of the game." – Michael Yardney "If you're getting free advice, then in fact, you're the product." – Michael Yardney "The best way is to reflect on your failures and focus on the lessons that you've learned and the person that you're going to become, rather than spending your time trying to avoid failure." – 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

Being a property investor is simple, isn't it? Just buy a property, then sit back, collect the rents, and fund your retirement. If only it was as easy as that. Granted, investing in property is a simple concept, but the execution is a different story. I've often said property investment is simple, but not easy. The rules are simple if you know them, but the execution is more complicated. And that's what we're going to talk about in today's episode. Initially, I'm going to give you six tips to help you get on top of the property ladder. Then I'll talk with Brett Warren about tips that he would have liked to know when he was first investing. Then, in my last segment, I'll share some money tips. 6 strategies to get to the top of the property ladder Invest in your knowledge before you start investing in bricks and mortar Learn from others who've not only achieved what you want to achieve, but who've maintained their wealth over a long period of time. Surround yourself with like-minded people and get a mentor who will not only inspire and challenge you, but can also give you some perspective. Marry your investment plans with your investment capital Remember that all booms come to an end and, like in the past, this new property cycle will peak. So, while enjoying the current phase, make sure you're financially prepared for the market as it changes. Use your portfolio to reduce your risk Strategic investors look forward to the best of times but protect their portfolios for the tough times that will inevitably come. Rather than gearing to the max, they take a more prudent approach by building an emergency buffer. They also own the type of property that will be in continuous strong demand by owner-occupiers. Do the due diligence before you do the deal Sophisticated investors have an investment plan that they adhere to and carefully evaluate any potential investment opportunity in light of their long-term goals. They know that this makes their investment decisions less emotional and their results are more consistent and predictable. Keep your sights set on your goals While most investors buy a property and hold it for the long term, strategic investors regularly review their investment portfolio's performance in light of their long-term goals. Questions to ask when reviewing your portfolio's performance: Is this property performing to my expectations? Is this property likely to outperform the market? If this property were for sale today would I buy it again? Does this property still fit in with my overall plan? Treat your property like a business and evaluate your assets dispassionately and take appropriate action. Remember that in real estate, less is often more Concentrate on getting the best deals for your investment goals, not the most deals. When it comes down to it, capital growth is key in building wealth through real estate and properties that outperform the long-term averages always come at a price. Lessons and Success Tips with Brett Warren Location does 80% of the heavy lifting Successful investors look for locations that have a proven track record of strong capital growth which will outperform over the longer term because of their demographics. Choose capital growth over cash flow. Most of your assets when you retire will be your tax free capital growth – the increase in value of your home and your investment properties – not money you have saved or rent that you've collected or superannuation you've put away. Success comes from a series of small things. Take every opportunity you can to better yourself or your circumstances, change your habits to be more productive and work hard towards a long term goal that you are committed too. Successful people have multiple streams of income. You cannot save your way to wealth and success. But by investing the income you save in high growth assets, diversifying your portfolio and adding multiple streams of income from property, shares and business you can fast track your wealth and are not solely reliant of your salary. 7 Money Tips If you are born poor it's not your fault, but if you die poor it's your mistake You have to take responsibility for your financial future. You have to become financially literate. Becoming wealthy is a long journey and it's not easy. Don't follow the herd Successful investors know that to get to the top of the property ladder, they need to overcome the fears that hold most people back from ever stepping foot on the first rung, or of not waiting for the perfect time or the perfect investment. And they also understand the importance of, wait for it, going against the crowd! You should know how many months you have left in your wealth window Your "wealth window" is the time from now until when you stop receiving an earned income. How much are you going to earn in that time? Your financial future will depend on the balance between enjoying your money now and planning for then. Practice delayed gratification Successful people possess higher p

What makes an investment-grade property? What makes it different from all of the other properties? What's the right strategy for this stage of the property cycle? What's the endgame that property investors should be considering at the moment, considering how coronavirus has disrupted our property cycle? That's what we're going to talk about today. I'm going to share with you my new endgame because my living off equity strategy that has stood the test of time for many years is not going to work for most investors in the current market. At the end of this episode, you'll be a more informed investor, and you'll have a strategy to work toward to help build your own financial independence. What makes a good investment-grade property? Not all properties make good investments. In my mind, only about 4% of properties on the market make good investments. What makes a property a good investment? What makes a good investment generally? Strong, stable rates of capital appreciation Steady cash flow Liquidity The element of easy management A good hedge against inflation Tax benefits An investment doesn't have to offer all of those or all in equal proportions, but those are characteristics of a good investment. How do you make money out of property? Rental income Capital growth Accelerated or forced growth Tax benefits 5 Stages of Your Investment Journey Stage 1: Education – learning what property investment is all about Stage 2: Saving – spend less than you earn and trap the excess cash flow in a savings account to build up a deposit so you can invest Stage 3: Asset accumulation – it will take two or three property cycles to build up enough of an asset base of income-producing properties to move to the next stage Stage 4: Lower your loan-to-value ratio Stage 5: Live off the cash flow of your property portfolio 6-Stranded Strategic Approach to Buying Property Buy a property that has appeal to owner-occupiers -- Not because you plan to sell the property, but because owner-occupiers will buy similar properties and that pushes up local real estate values. Buy property below its intrinsic value – avoid new and off the plan properties, which come at a premium price. Look for a high land to asset ratio – that doesn't have to mean a big block of land, but one where the land component makes up a significant part of the asset value. Buy property in an area that has a long history of strong capital growth and that will continue to outperform the averages. Look for a property with a twist – something unique, or special, or different about the property. Buy a property where you can manufacture capital growth through refurbishment, renovations, or redevelopment. 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: The most effective property strategy for now and an update on my living off equity strategy Some of our favourite quotes from the show: "Too many investors don't recognize, though, that property investment is a game of finance with some houses thrown in the middle." – Michael Yardney "Bottom line is, cash flow keeps you in the game, but it's really capital growth that gets you out of the rat race." – Michael Yardney "The rich don't like to commute." – 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 important is assessing demographics in building your property portfolio or planning your business or personal ventures? If you don't pay attention you could be missing the key to building long-term wealth in a way that minimizes your risks. In today's episode of Michael Yardney podcast, I chat with Simon Kuestenmacher, and we're going to talk about 7 macro / big picture demographic trends. So, at the end of the episode, you'll have a better big picture macro view of what the demographic trends in Australia are. Highlights from my conversation with Simon: Over half of Australia's wealth is in housing, so the housing market underpins Australia's wealth The property market itself isn't in trouble However, the Australian middle class has been hollowed out, and the big challenge is getting low-paid workers on the path to homeownership We may move into the right direction because of corona-inspired infrastructure programs that create middle-skill jobs Australia is the most intensely concentrated population on the planet This is because of the kinds of jobs that Australia creates A large percentage of Australians are born overseas The influx of international students to Australia has created a student boom One of six international students will become permanent residents Australia is more generationally diverse than ever before Australia may be the location of choice for companies who want to set up Asia-Pacific centers The need to build higher-quality buildings that last longer Changes in where people want to live and the kinds of accommodation they need Mixed development in the inner cities The makeup of the workforce Baby boomers are staying in the workforce longer Close to half of the workforce is Gen Y, so it's important to understand them Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group Simon's YouTube Channel In these challenging time why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Join us at Wealth Retreat 2020 – click here and register your interest Shownotes plus more here: 7 Australian demographic trends investors and business people must understand Some of our favourite quotes from the show: "I think one of the great things about our cities over the last couple of decades is the vibrancy of being in the inner city." –Michael Yardney "There's no doubt that the bulk of these generations do think very very similarly, and to be a good employer or to sell to them, to be a good businessperson, you've really got to understand what drives, what motivates them." –Michael Yardney "Letting go of attachments makes your life richer, as you create space for new experiences to come." –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 adults we often forget that at one point in our life we saw the world and the people around us in a much different light— we saw the world through a child's eyes. As we grow up and mature, we allow life and rules to restrict some of the greatest instincts we had as children. Instead of never taking no for an answer, waiting for permission, or even embracing our wildest dreams, we fall into a strict regimen we believe will keep us safe and drive us to success. However sometimes it's important to remember that to truly be effective and productive leaders, our old "childish antics" can actually do us some good. In fact, it turns out the children can teach us a lot about being successful in business and in life. In today's episode, Mark Creedon and I discuss ten things we each learned from our grandchildren that can help us in business. Here are ten things Mark learned from a chat with one of his grandchildren, which I think can help us all in business, success and life in general: The importance of budgeting Iziah told me if he had $100 he would save half and spend half. He wanted to save half for the future and to have some money put away but he also wanted to enjoy his newfound 'wealth' a little. Follow your passion I asked him what he wanted to do when he grew up. "Be a vet" he replied. Because he wanted to help animals, he loves animals and he knows that what vets do. Understanding why you do what you do is a fundamental concept we all should get our head around. It is important to play I asked him what grown-ups should do other than work. "Play" was his response. Recent research from Psychiatrists from John Hopkins University have compared play to oxygen. Taking time to play feeds dopamine into a whole bunch of areas of the brain. Ask "Why" a lot Sometimes as adults we stop asking questions. Once we stop asking questions, stop enquiring we can fall into resignation. The end result of that is that we can miss opportunities because we didn't scratch the surface and look at why something is happening or why it might. Of course, the other issue about us stopping asking questions is we may also miss the opportunity to, learn from mistakes and so we may very well keep making them. Family is more important than money The point is that there has to be a bigger goal than just money. Money is a great tool and life can be pretty tough without it, but we have to know why we want that money. Family is more than just your household When I asked Iziah who his family was it was much more than just his Mum, Dad, and brother. he cited his aunts and uncles, grandparents, cousins. The point is to consider who your family is, keep it as wide as possible and make sure you are looking after and keeping connected with all of your 'family'. Don't keep secrets Families don't keep secrets from each other, Iziah told me. There is a great lesson here. By being brutally honest with our business family, we are more likely to have them join us wholeheartedly on the journey. Schedule time for fun We mentioned before about the importance of play but life can get in the way. Iziah has an arrangement with his Mum and dad that schedules time in the day for uninterrupted play. That way he knows it will happen and Mum and Dad know nothing will get in the way. It is like anything in life, business. If all we do is put it on a 'to do' list there is a good chance it will get missed or overtaken by other priorities. Schedule it in your calendar and treat it the same as any important appointment. Always Learn My grandson goes to school, he reads, he loves learning. That is something we should never stop doing. Get back up and believe in yourself I asked Iziah what happens when he falls off his bike. "I get up, get Mum and Dad to give me a hug and get back on the bike," he told me. We all know that what counts is not how many times we fall but how many times we get back up. the other thing he shared was how he deals with climbing high on the monkey bars without fearing a fall. "Think positively and believe in myself " was the answer. Couldn't we all use that little gem? Michael shares lessons from his grandchildren Kids have no fear In business, so many of us are stuck in the wrong job just because we are so afraid of the unknown. You don't need to know it all before you take a step towards what you want to do. Of course, kids need to be developmentally ready for certain tasks, but if they are interested in, and want something, they will go for it. And, so should we – whether it's big changes, or small, fear of failure should not stop us from new experiences. Kids are driven by curiosity We learn by being curious. Kids, especially, are so curious it drives them to learn and discover all new things every day. In our professional and personal lives, it's common that we settle in our ways, doing the same thing in the same way just because we've grown comfortable, losing our sense of curiosity. Curiosity is what drives new experiences and takes us to

Much of the Australian economy is being kept on temporary life support either by federal government schemes or through bank relief. These assistance measures are slated to end after 6 months, but clearly the coronavirus crisis won't be over by then, and unemployment probably won't return to normal levels for a few years. People are wondering what's going to happen to house prices, unemployment, and our economy once these protections are taken away, and there are lots of forecasts coming up. That's one of the things I want to talk to John Lindeman about today. Many of the upcoming predictions are bound to be wrong, so we're going to have a chat about what you should be looking for when you're looking at forecasts, and he's also going to share a great analogy with you about a plane flight and our property markets to help you understand where we are in the market at the moment, and how to pick the turning points. And then, in my mindset moment, I'm going to show you 11 ways to fail. You may not want to fail but knowing how to fail can actually help you to succeed in life. Highlights from my chat with John Lindeman How predictions often combine different types of property together Predictions tend to lump different types of housing together, like apartments and houses They also combine large geographic areas, when in actuality, coastal areas, outer suburbs, and inner rings of cities may perform very differently. Predictions that lump too many different factors, geographic areas, or types of housing together are largely useless The difference between expectations and predictions Expectations are based on knowledge of what has happened in the past and extrapolating from that what will likely happen in the future Predictions are more specifically aimed and therefore less likely to be accurate How to time the turnaround Signs that things are starting to look up. 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 ReportsJoin us at Wealth Retreat 2020 in November Shownotes plus more: Property forecasts - which are useful and which to ignore, with John Lindeman Some of our favourite quotes from the show: "I see a big difference between an expectation and a forecast." – Michael Yardney "Those who are happy and successful don't necessarily have a more blessed or lucky life than the other mob." – Michael Yardney "Cynicism requires a lot less work than belief in something." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you're like the most listeners to the Michael Yardney podcast you are here to learn about success, money and property investment. Well you're in for a treat today because I'm going to be chatting with Mark Victor Hanson who has inspired over 1 billion people through his books that have been translated into 54 languages. I know he inspired me when I first read his chicken soup for the soul series of books, but then I went on to read his books related to entrepreneurship and property and they came at the right time in my life when I needed them. I know currently a lot of people are feeling challenged by what's going on in the world around them, so I hope Mark words of inspiration will come at the right time of your life, just like they came at the right time in my life. He got a powerful message to share with you and it's more than his normal message about the principles of perseverance, excellence and believe in oneself. It's a message for everybody in these challenging times so I'm proud to have a chat with one of the worlds most respected thought leaders who is known globally is the ambassador of possibility. Mark Victor Hansen is probably best known as "that Chicken Soup for the Soul guy" and has sold over 500 million Chicken Soup for the Soul books worldwide. But there's a lot more to Mark than that. For more than 44 years, he has focused on helping people and organizations reshape their personal vision of what's possible. He's been featured by Oprah, CNN, and The Today Show… just to name a few. We discuss: How Mark is handling Covid-19 Don't wait until everything is right. It will never be perfect. There will always be challenges obstacles and less than perfect conditions so get started now. Life isn't meant to be easy - make the most of life's challenges. If you can't change the situation you can change your response. The importance of adaption Charles Darwin, famously taught the principle of Survival of the Fittest which said: "It's not the strongest of the species that survives, nor the most intelligent that survives. It's the one that most adaptable to change. Today the world is changing at a most amazing pace, so it's important to keep up and adapt. Your destiny Mark believes each of us has a destiny and it's our job to find it. He explains how we go about doing that. We should ask for more Mark teaches us to ask for more, explaining that the world responds to those who ask. Most people in this world, however, find themselves in settled lives, never really achieving or receiving what they hold in their dreams . . . because they just never ask. You get whatever you expect to get. The only question is, what do you want? Do you know clearly what you want you wake up every morning excited about life? 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 Mark Victor Hansen at a free livestream in Australia on Sunday 26th July at 10.00 - mesiti.com/chickensoup Some of our favourite quotes from the show: "If you do things the same way you always done, you'll get the same outcome. In order to change your outcomes, you've got to do things differently." – Mark Victor Hansen "If you keep believing what you have been believing, then you'll keep achieving what you've been achieving." - Mark Victor Hansen "The size of your thinking determines the size of your results. Life is about thinking big to play big and achieve big. The future has extraordinary opportunities that are scaling beyond anything ever previously imagined and each of us gets to participate actively as you control your mind power." - Mark Victor Hansen PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it's your way of passing the message forward to others and saying thank you to me. Here's how

The coronavirus pandemic has created one of the worst recessions the world has seen since the 1930's Great Depression – but it was also shaping up to be one of the shortest. Australia's economy was already showing signs of bouncing back, following a "very deep contraction" but then the threat of a second wave of coronavirus hit us. What would a serious second wave of coronavirus due to our economy and our property markets? That's what I want to discuss with you today. While I'm optimistic about the future, I realize that unemployment and underemployment rates are set to take years to return to pre-coronavirus levels. Our economy will grow more slowly this year and next, but a significant second wave of coronavirus will do some damage to our consumer confidence and slow everything down again, so I'll explain my thoughts about this in more detail today. Then I'd like to share an important message from one of my mentors, Jim Rohn, that will help you give you some inspiration to work through these challenging times. What would a second wave of Coronavirus do to our property markets? Our property markets have been remarkably resilient so far, but how would a significant second wave of coronavirus affect our housing markets? Well…If we look back there are a few lessons we can learn to help us better understand what's ahead. In spite of the Coronavirus induced economic downturn Australian property values didn't crash as the doomsayers predicted and our economy rebounded more quickly than many expected. At the same time, rental relief packages have kept tenants in their homes, and mortgage support has meant that there have been very few forced sales. However, home buyers and sellers went on strike choosing to postpone their next move until more certainty returned to the market and this contributed to a 32.4% drop in property sales volumes over April. Then as social distancing measures eased and consumer confidence returned, property transaction numbers experienced a strong recovery in May and June. Initially, it looked like we were going to experience a deep, but short, economic recession and that our property markets would weather the storm defying the 10%-20% fall in values some had predicted. But if Australia is hit by a significant "second wave" of coronavirus cases it would postpone the economic recovery that many economists expected in the second half of 2020. So what's ahead? Of course, no one really knows what's going to happen to property values, so it's important to analyze and anticipate possibilities and probabilities. A significant second wave of Coronavirus and a continuing barrage of negative news in the media about our health, unemployment, and businesses going bust is likely to dampen consumer confidence further and have a negative impact on our property markets. But if a second wave of infection overtakes us, we can expect further government support. The government and the Reserve Bank have clearly stated that they will do anything and everything they can to support our economy and minimize the impact of the coronavirus on our businesses and our economy. What about property values? If a second wave of coronavirus causes further lockdowns or more social distancing restrictions, our property markets will slow down as they did in March and April. Both buyers and sellers will go on strike until the picture becomes clearer. But like earlier this year, property values won't plummet, because it's unlikely that there will be a flood of properties for sale. At the moment I'm seeing three levels of buyer property sentiment out there. The Negative Nellies who are worried that property prices are going to crash and all they can think of is doom and gloom. Those who are bunkering down, battening the hatches, and just waiting for news that this is all over. Those with a positive outlook who have a secure job and a long-term focus who is seeing great buying opportunities in the market when there is less competition and interest rates are the lowest of ever been in history. The worst affected residential markets will be:= Apartments in high-rise towers – in fact, this is these properties are likely to be out of favor for quite some time. Off the plan apartments and poor-quality investments stock (as opposed to investment-grade) apartments, particularly those close to universities. Outer suburban new housing estates house and land packages, where young families are likely to have overextended themselves financially and with many people will be out of work for a while Properties in the blue-collar areas. On the positive side, households and property investors whose incomes remain stable and secure will be able to take advantage of historically low interest rates. What's going to happen to our economy? Yes, the health crisis has led to an economic shutdown, and some were concerned that this had the potential to create a major financial meltdown, but clearly that hasn't happened. Unfortunately, there is no roadmap to

What drives property price growth? Especially in this era of lower interest rates, lower inflation and lower capital growth in general? If you want to one day live off the fruits of your property portfolio, you'll need to own the sort of properties that grow at wealth producing rates of return that outperform the averages. Today we're going to have two different views on the subject. First, Brett Warren is going to give his thoughts and views on the subject. Then, I'm going to have a chat with Pete Wargent, who says there are only three factors that drive property price growth. These two guests are probably going to end up in much the same place, but after listening to both you'll be much more informed about how to choose an investment-grade property. Demographics is the key with Brett Warren Demographics is a critical factor in both property prices and the economy. Understanding the demographics can make the difference when it comes to choosing the right property. Some of the most important factors to look for include: Owner-occupier appeal A homeowner is unlikely to panic and sell their home at the first sign of a crisis, but an investor might. An area with a higher percentage of homeowners than investors is likely to be more stable than an investor-heavy area. Income level Areas that are good for investing tend to attract residents who aren't living paycheck to paycheck. Instead, the owner-occupiers tend to have multiple income streams. Dual incomes, bonuses and commissions, side business, and income from property or shares, for example Occupation type Look for areas where people are employed in professional services such as IT, financial, and health services We have to take a step back and assess the fundamentals because the fundamentals don't change from week to week or month to month. If you can get those right, you can make the best investment decisions. Don't forget the 6-stranded approach. Look for: High owner-occupier percentage Not off the plan Land-to-asset ratio What happened during a downturn Something with a twist The ability to add value 3 Factors that drive Property Price Growth with Pete Wargent Supply – The rate of new construction and the number of properties listed for sale Interest Rates – The cost of borrowing 3. Population Growth – Includes factors like immigration, natural population growth, and interstate migration. Links and Resources: Brett Warren - Metropole Property Strategists 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 Join us at Wealth Retreat in November 2020 – find out more here Shownotes plus more here: Are there really only 3 factors that drive property price growth? With Brett Warren and Pete Wargent Some of our favourite quotes from the show: "We're looking for areas where people can afford to, because they've got higher incomes, and they're prepared to pay to live in those areas, because of the aspirational element of those suburbs." – Michael Yardney "There was a period of oversupply before, but now it's the other way around. There's actually the lowest level of listings available with new or established properties than there has been for a long time." – Michael Yardney "The government hasn't spent all that money and all that effort to get us across, and then let us fall over a cliff." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We're halfway through the year, and let's hope the second half of 2020 is going to be better than the first half. That's what we're going to chat about in this episode of the Michael Yardney podcast, while I give you some ideas about what's ahead. I also chat with Pete Wargent about what's really happening with the financial system, our housing markets, and concern about housing stress. Hopefully, today's episode will bring some extra clarity and certainty in today's uncertain times. Now that we're halfway there I've never seen a trilogy like this with: A global pandemic, Australia slipping into recession and Increasing geopolitical and local social unrest. This means there's a lot to think about … both at the macro-level affecting our country and its place in the world economy and at the micro-level with your investment or business strategy. It's like those jugglers at the circus, with so many plates spinning in the air at the one time. Which ones are going to keep spinning, and which ones are going to come crashing down? This means it's important to keep an eye on all those spinning plates and watch out for warning signs. Ignoring the warning signs of plates about to topple almost always ends badly. Yet even rational adults at times revert to burying their heads in the sand trying to hide from the scary realities of what's going on. Of course, you can ignore reality, but you can't ignore the consequences of ignoring reality. Then there are the pessimists who only seem to see the downside. And at present, they're out in force. These Negative Nellie's can only see the worst happening with a major world recession. On the other hand, there are the optimists who only see the upside … and some may get blindsided by dangers which are obvious in hindsight. Yet over the years, I've realized that the secret to success is the ability to pursue the upside while keeping the downside in view so it can be managed. Sure, there are lots of downsides if you look for them. Which of those plates will keep spinning and which will topple? If they topple will they break? If so, what does that look like? Do you have a plan? But if you love the freedom to pursue opportunity, own property portfolio, build wealth, and retain and enjoy the fruits of your efforts, it's hard work you'll need to do. So what's ahead? Australia's economic outlook depends on the success or otherwise achieved by the government health authorities and communities in suppressing the spread of the virus. If the virus is contained and the active caseload remains manageable, then more parts of the economy will reopen, and a degree of normality can return to society and the economy. You see…there is no roadmap to follow so governments will need to quickly respond to changes in circumstances. But most of the bright folks I've been following and talking with agree that Australia is in a better position than any other country in the world to work its way through the challenges ahead. It looks like we will have a stepwise recovery as our economy opens up in stages. Sure, some of our support mechanisms will be taken away at the end of September, with JobKeeper and mortgage holidays ending; but I can't see the government pulling the rug out from under us. They have spent too much time, money, energy, and publicity telling us how they are going to support us, so it's likely the support will remain but in a more targeted fashion. Our governments have a vested interest in keeping our real estate markets liquid and buoyant, recognizing that consumer confidence is critical for our economic recovery. They know that the quickest ways to see consumer confidence plummeting is for people to see the value of their homes dropping. At the same time, our banks have a vested interest in supporting our property markets. Highlights from my chat with Pete Wargent: The good news is that things look a lot better in July than they did in mid-April When there's a known risk, the more people talk about it, the more the impact is dampened The government does have the opportunity to smooth things over in September It's going to be a step-wise increase, not a V-shaped recovery The demographics of the people most affected by the economic difficulties suggests that mortgage repayment won't be as big a problem as initially thought People need to think carefully about the incentives to buy high-rise apartments or house and land packages Australia is predicted to do better than any other developed country's economy going into 2021 This means that once Australia can open again, the demand for Australian visas and work in the Australian economy is likely to be as good as it's ever been 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 ReturnsJoin us at Wealth Retreat in November 2020 – find out more here Shownotes plus more here: We're halfway there and the real truth about M

There's no lack of property-specific data information out there. It is often available with just the click of a mouse. However, with this increased availability of data, there are new challenges. How do you make sense out of all this data? Whose numbers can you trust? In today's episode of the Michael Yardney podcast, I chat with Kate Forbes about her specialty, how to interpret data. How important are median prices? In the simplest sense, the median house price is the middle point of all sales ranked from high to low. For example, if there is an influx of first home buyers in a location who are buying at the lower end of the price scale, then the median price will drop. On the other hand, the median will go up if a lot of people in the area are renovating and upgrading their properties. Median prices tell you what's happened recently, but it doesn't give you much information about individual properties. What factors in supply and demand should you look at? It's important to understand a number of factors with the number of properties for sale. A number of new properties is indicative of vendor confidence. How long houses have been on the market matters as well. If there are a lot of properties for sale, but they've all been there for a long time, that's not a good sign. Days on market I've found the trend of days on market can tell you whether we're in a buyer's or seller's market. If it's taking longer for properties to sell, it's usually a sign of softer market conditions and vice versa. Vendor discounting When there are fewer buyers out looking for property than there are properties for sale, vendors usually need to discount their asking prices to secure a buyer. But when there's plenty of buyer interest vendors have less need to discount their asking prices. Market Depth The more people that you have looking for one particular thing, the greater the market depth there. Rental Yield If a rental yield starts rising that's a sign that there is strong demand from tenants to live in those locations. However, as more investors go to the location and property prices rise, rental yields begin to drop. 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 Organise a time to speak with Kate Forbes- National Director Metropole by clicking here Shownotes plus more here: Number Crunching: How to Understand Property Data, with Kate Forbes Some of our favourite quotes from the show: "We like market depth from owner-occupiers, not investors." –Michael Yardney "At any level of your financial journey, money management is important." –Michael Yardney "Being aware of your spending is one of the most powerful tools that you've got for being aware of yourself." –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. 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 the difference, and eventually invest it. The problem is that too many people throw away their money buying things they don't need with money they don't have to impress people they don't like. Gratitude is important But I've learned over the years that true wealth has nothing to do with how many properties, or how much money, you have. Give back to the community and charity Apart from being grateful for what you have, you also need to give back to the community and charity. I believe it's our responsibility to help others who are less financially fortunate. Links and Resources: Michael Yardney Brett Warren - Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in November 2020 – find out more here Shownotes plus more here: 16 Things I wish I knew when I first started investing Some of our favourite quotes from the show: "Today, there's no shortage of information. I guess what there is a shortage of though, is perspective." –Michael Yardney "If you believe you deserve to be rich, if you believe you deserve to be successful, you will achieve that." –Michael Yardney "It takes probably 30 years to develop a significantly big asset base to start to live off of 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

Robert Kiyosaki has taught millions and millions of people some important financial concepts. I learned a lot from him in my early years, and I've quoted him on many occasions. But I also believe that the way he thinks about real estate – which may work for him in the US – is not relevant in Australia. And there are a number of his other concepts that I don't believe are correct. He does have some great basic rules of investing that I'm going to share with you on today's podcast. I'm also going to share what I disagree with about his concepts. Then you'll have the information you need to make your own decisions. Some of Robert's basic rules: Rule number 1: You should adjust your money mindset. Rule number 2: Know what kind of income you're working for. Earned income, portfolio income, or passive income? Rule number 3: Convert ordinary income to passive income. Spend less than you earn, save it, invest it into an asset class that will give you investment income. This involves delayed gratification. Rule number 4. The investor is the asset or the liability. Invest in your financial education first. Like that one. Rule number 5: Learn to evaluate risk and reward. Rule number 6: Understand the cash flow quadrant. Where I disagree with Robert: Where I disagree with Robert is that he defines an asset is something that brings in cash flow, while I view capital growth as another form of income. I believe you have to build a substantial asset base first, then convert that asset base to cash flow. The end game usually involves a number of different types of assets. We don't know what's going to happen 10 years in the future, but we do know that if you have assets, you will have choices. Robert has done a great job of making sure people understand the importance of how money works. But I'm concerned that he has scared off many investors and led others astray with his prophecies of Armageddon. He's become a pessimist. I find no real substance behind his beliefs that the market is going to crash. Further, I feel that Australians are misled by investment advice that may work in America, but not in Australia. Real estate investments are not cash flow investments in Australia. In my mind, investment decisions should be based on the potential for capital growth. Cash flow is important, but it's not the end game. Robert suggests that your home is not an asset. I disagree with that. Robert is an ardent real estate investor. He owns 3 homes and 8000 rental properties. So clearly, he knows a lot about property – in the United States where the rules and tax regimes are very different. Robert says that your home is not an asset, it's a liability, because it doesn't bring money in and you must spend money on it. But that's not my definition of an asset and it's not the standard definition of an asset either. I believe this assumption is flawed. 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 2020 Some of our favourite quotes from the show: "The first step is to use leveraging gearing to buy high-growth assets." – Michael Yardney "If you're focusing on cash flow as a goal, you're not doing it right." – Michael Yardney "If a problem isn't going to matter in ten months, don't even spend ten minutes worrying about it." –Michael Yardney Shownotes plus more here: Here's where Robert Kiyosaki is wrong about property 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 often talk about the things that we learn in business, the lessons that we get, and the people we get the lessons from. That got me thinking just the other day about how I also think there are some lessons that we can learn not from people, but in fact, from animals. So today I chat with Mark Creedon, founder of Business Accelerator Mastermind, about 10 life lessons we can learn from dogs. Here are some of the things we discuss. Dogs live in the moment. They don't worry about the past. They don't think about the future. Dogs find ways to overcome fear. Truth is there's often a lot of fear around being in business, especially in the current challenging climate. But interestingly dogs learn ways to overcome their fears. Dogs don't hold grudges. I didn't take him for our normal morning routine a walk this morning, yet he hasn't held a grudge against me. It's not as if he's turned his back on me and ignored me. Dogs don't hold grudges. Dogs play every day. When was the last time you played? To me, play is two things. It's about physical movement and getting out, whether it's throwing the ball with your dog, or playing with the kids, or playing in the park, or flying a kite, or running on the beach, or going for a swim, whatever it might be. But it's not just about physical movement, it's also about psychological well-being or mental health, and the release of dopamines, and all the neuropsychology that goes around that. Dogs jump for joy when they're happy. When was the last time you just showed unabashed joy? Dogs just jump for joy. You can go out for five minutes and come back, and they're all over you. Dogs accept who they are. Dogs don't want to be another dog. They don't want to be a different breed. They don't wish they were somewhere else. They just accept who they are. Dogs enjoy the journey When we're talking about setting goals with clients, we often talk about the importance of both destination and journey goals. In fact, it's important to enjoy the journey otherwise you won't enjoy the destination. Dogs are loyal and dependable. Dogs are pack animals. My best mate is a dog trainer who often talks about the link back to wolves and packs. Dogs understand who their pack is. Dogs drink lots of water. Dogs know what their body needs, and so they drink lots of water. So should you! Dogs love unconditionally. I'm not talking about romantic love, or holding hands and singing Kumbaya. I'm just talking about love in terms of affection, support, loyalty, attention, appreciation, gratitude; things dogs do unconditionally. So there it is….. Ten things that dogs can teach us that you can apply not only in business but in life in general. 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: Ten things dogs can teach us about business… and life | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "Look for something that's holding you back – let's put it differently. Something that you're still holding onto that you should have let go." –Michael Yardney "Here's another challenge for you, the people listening to this podcast: think about something that makes you happy. Now, why aren't you doing that more often?" –Michael Yardney "Long-term goals are important, but if they're too far out, you're not going to achieve it so you need those intermediate goals. –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 living in challenging and interesting times – a coronavirus pandemic, a recession, social unrest, financial instability – so today, I'm going to offer you something very different as I speak to two of the world's best motivational and inspirational speakers, Les Brown, and Dr. Willie Jolley,both from the United States. We're not even going to talk about property today. When you come to my podcast, you're usually interested in success and improving yourself. Property is really just a vehicle to get more financial success, but today we're going to talk about a more important vehicle: you. Your mind, your brain. We'll talk about how to rebound back even stronger after the challenges we've been through. One of my guests is an inspirational speaker and one is a motivational speaker. What's the difference? Listen in, and you'll find out. Les Brown's Top 10 Rules for Success For over 50 years, Les Brown has transformed lives internationally as a fast-talking radio DJ, as a community activist, a State Legislator, and a motivational guru. His global following call him The World's #1 Motivational Speaker. Here's his advice:- Believe in Yourself Believing in yourself when no one else does is one of the strongest characteristics a human can hold. Don't Stop Running Towards Your Dream This is Les Brown's most important advice: never give up. You will have to make sacrifices to achieve your dreams, and you will doubt yourself, but don't stop. That's all. Don't stop. Take Full Responsibility for Your Life Early on, Les recognized that he had to accept where he was at. He couldn't just be angry, he had to accept reality and move forward to improve it. Stand Up to Yourself The inner negative conversation is the most insidious and dangerous enemy we face when we seek success. Conquer yourself and you can conquer anything. Go All Out Going all out means doing whatever it takes to make things happen in your life. Whatever it takes to make your business succeed, whatever it takes to get that dream job or raise. Do whatever it takes! Stay Busy When Brown was fired from his long-time job at the radio station, he didn't quit or take a break. Instead, he stayed busy by running for election in the Ohio House of Representatives — and he won. Stay busy and keep planting seeds. Keep putting yourself out there, and something will happen. Give More Than You Are Paid For Success comes through hard work, and that is why it is critical to give more than you are expected to give. Don't half-ass your life. You will be rewarded for hard work. Someone's Opinion is Not Your Reality You will face defeats in your life. You will face those who doubt you, despise you even. But other people's negative opinions about you do not determine your reality. You determine your reality. You're Different If you truly want success in your field, you must believe and embrace the fact that you are different. Don't you think that you perform better when you believe that you are the best? Go Above and Beyond; Amaze your Customers Les Brown teaches the point that it is necessary in this customer-driven economy to not just serve your customers but to actually amaze them. To go so far beyond what they expect that they are blown away. Conversation with Dr. Willey Jolley Dr. Willie Jolley has been called "the most powerful speaker, singer, and author combination in the world today!" Dr. Jolley was named "One of the Outstanding Five Speakers in the World" by the Toastmasters International. Only 50 speakers worldwide have been given that honour - including Colin Powell, Nelson Mandela, and Margaret Thatcher! Some of the Topics I Discuss With Dr. Jolley The importance of adapting during a crisis How to get past the negativity in media The impact of good news The importance of choosing your network wisely Finding opportunity in adversity Lifting and shifting your mindset Investing in yourself Changing your responses when you can't change what's happening The difference between a motivational speaker and an inspirational speaker Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in November 2020 – find out more here Les Brown's book: You've Got to be HUNGRY: The GREATNESS Within to Win Dr. Willie Jolley's Free Gift To register for the FREE for the Get Motivated Get Wealthy Online conference on Sunday 28th June 2020, featuring Les Brown and Willie Jolley visit www.getmotivatedgetwealthy.com.au Shownotes plus more here: Inspiration and Motivation from 2 of the world's top masters: Les Brown and Dr. Willie Jolley Some of our favourite quotes from the show: "I guess that's where it all starts, isn't it – in self-belief, not what other people think of you." –Michael Yardney "It's not just that you read, but it's also what you put in your mind." –Michael Yardney "Every adversity creates opportunities, carries opportunities, the challenge is to find that seed of opportunity." –M

Today's podcast is based on your questions: questions listeners have asked and the questions that our clients are asking us at Metropole. There's still so much uncertainty about a recession and uncertainty about what's going to happen to property values, so today I'm going to give my thoughts and leave you with more certainty and better direction. We've been hit by a health crisis that's led us into the most serious global recession in almost a century. But there is some good news. Recent events have left many of us feeling uncertain, but they're also responsible for some of the best opportunities in our lifetime. It may be your opportunity to realize financial independence. What's going to happen going forward? Recessions are always periods of significant opportunity because they are a time of transfer of wealth The technical definition of a recession is two-quarters of negative GDP and while we're not there yet, we're in recessionary times. By the time we find out we're officially in a recession, it will all be over I see a staggered, satircase recovery rather than a V-shaped recovery In the meantime, many will probably stash their cash waiting for the news that we're through the worst of things We entered this recession with a positive balance of trade, an almost-balanced budget, and a solid banking system in Australia We're not seeing many mortgage defaults because in general, debt is in the hands of those who can afford it There will be higher unemployment for a while, but it's likely it won't be as bad as initially predicted Reduced wages will lead to less spending power for a time The real estate markets have slowed down. There are fewer transactions and fewer houses on the market. The property market is starting to pick up, and there's a flight to quality but there are \ great opportunities for investors prepared to take a long-term view Over the next few years, interest rates will remain at historic lows There will be a short-term window for those who want to get into property, as many are still sitting on the sidelines The Reserve Bank can't lower interest rates any further, so governments will have to stimulate the economy with fiscal policy Unemployment will likely be high for a couple of years While some industry sectors will suffer, others will do OK Tourism, education, retail, and maybe the financial sector will suffer Government, manufacturing, technology, defense, agriculture, infrastructure, and healthcare will all do well Some Recommendations: Don't overreact. Be careful not to get sucked in by the news and by the hype. Instead, think long-term. Don't try to time the market, and don't try to get a bargain. Just buy the best property you can in the best location you can in your budget Before you get into property, make sure you have a solid foundation. Have financial buffers in place and talk to some experts about the right ownership structures to maximize your upside and minimize your risk 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 2020 Shownotes plus more here: Coronavirus, Recession, and Property: Who's right – the pessimists or the optimists? Some of our favourite quotes from the show: "I see a staggered recovery as we move out of lockdown in stages." – Michael Yardney "Recessions are largely driven by how the population as a whole is feeling about the economy, more than what the economy itself is doing." – Michael Yardney "We know from previous downturns that before unemployment goes down, the property market starts to pick up. Rising property values always lead us out of recession." – 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've been hit by a health crisis that has led us into the most serious global recession in almost a century. Despite living in one of the richest countries in the world, many Australians are currently struggling financially, and if history repeats itself, the gap between the wealthy and the average Australian will only get wider. But there's still good news. Though recent events have left many feeling uncertain, the same events will also be responsible for some of the best opportunities of our lifetimes. It may give you the opportunity to realize your own financial independence. We're moving into a time of change. Most people don't like change; we'd prefer a more predictable environment. But if you can get past that, you'll be able to take advantage of the opportunities that are going to arise, and that's what I'm going to talk about today. How the Rich think differently There is a classic book by Napoleon Hill that I recommend you read called Think and Grow Rich. While it was written almost 100 years ago, you will find it on the bookshelf of almost every successful investor. Now there is a good reason why the book is called Think and Grow Rich and not Get a Job and Work Hard and Grow Rich. It's because the rich think differently to most people and those who work hard at a job don't end up rich. So let's look at the difference between wealth-generating thoughts and impoverished ones. The Rich think Big Picture, while the Poor get lost in Detail. I frequently see the rich do well by recognizing opportunities, while the poor get bogged down and distracted by all of the finer points. This often means that all they end up seeing in a given situation are obstacles or problems. The Poor trade their time for money, while the Rich work their money. The only way the average Australian knows how to get more money is by working harder; by trading hours for dollars - they either work more hours or get a second job. The rich invest in assets like property that increases in value and brings in money whether the owner works or not. The Poor think Cash Flow, the Rich think Assets. The poor build their cash flow while the rich build their asset base (like their investment property portfolio). The poor spend their cash flow (the money they earn after paying tax), while the rich spend their capital or money generated by their assets. The Poor save their Money. The poor save their money thinking it is a way to become wealthy. On the other hand, the rich are comfortable borrowing and using leverage to buy appreciating assets. The Poor decrease their Debt while the Rich increase their Debt. The average Australian is scared of debt. The rich realize that they become even more wealthy by owning assets that increase in value, such as well-located investment properties. The Poor try to pay off their Home. Your home is an appreciating asset and the only way most of us can ever buy a home is by taking out a mortgage, so even though your home loan is not tax-deductible, it is not bad debt - it is "necessary debt." The rich recognize this and don't strive to pay off their home loans. The Poor like to Trade. The poor try to make money through trading - through buying and selling. Whereas the rich understand that they make more money by holding onto their assets and never (or rarely) selling. They realize that they can refinance against the appreciating value of their properties. The Poor think Scarcity while the Rich think Abundance. The truth is that money is just energy, an exchange for value. If you make the mental shift that money is limitless, that it can be invented and generated on demand, in line with the value you provide, it will open up all sorts of possibilities. The Poor believe that Life Happens to them, while the Rich believe they Control Their Lives. The rich believe they are the pilot of their destiny while the poor feel they are just a passenger being taken along for a ride in the flight of life. The Poor think Small while the Rich think Big. The rich think big. They take responsibility. They play the game to win and they do well. When you think like a rich person you have big visions and dreams, you focus on doing what you love and are most passionate about. The Poor want to be Rich, the Rich are committed to wealth The poor want to be rich, while the rich are committed to becoming wealthier. The Poor are scared of Failure. The poor have a fear of failure - they see it as something bad. The rich know that on their way to becoming financially independent they will have moments where things won't go according to plan - what I like to call retracements. Just because something doesn't work out, it doesn't mean you have failed. Nor does it mean you are a failure. It simply means you have found another method or approach that doesn't work, and this discovery brings you one step closer to making sure it will work the next time. The Poor think they know it all and don't need to be taught to become wealthy. The rich know they

The coronavirus crisis has cut Australia off from the world. And our population growth is about to slow dramatically. This is going to affect our property market and slow economic growth by up to 2%. Every time we have an economic downturn, immigration becomes a topic of great interest. And with the likelihood of unemployment rising to over 10%, the discussion has become even more vocal. In today's show, I discuss the political, economic, and property implications of immigration with our regular guest, leading demographer Simon Kuestenmacher. You may be surprised by what his research suggests will happen to immigration, and the information may help you shape decisions going forward. Highlights from my talk with Simon: The variables Simon had to consider when looking at the consequences of the decrease in immigration The idea is that by 2030, Australia will still have grown, but by one million less than they could have without the pandemic So far, Australia seems to be getting through the pandemic with very few deaths, so there isn't currently a need to alter the death rate predictions Over the next year or two, the demand of the labor market will be able to be filled with people who are already in Australia. But after a year or so, Australia will hit the wall again and new talent will need to be brought in. The demographics of the missing million How those missing demographics affect businesses How temporary visa holders will be affected The jobs that are servicing the property and construction industry will be suffering the most from decreased immigration Infrastructure spending Millennials finally in the family formation stage of the life cycle, which should be a positive for property and the economy Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group Simon's YouTube Channel Shownotes plus more here: How will plummeting immigration affect our economy and property? With Simon Kuestenmacher In these challenging times why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Some of our favourite quotes from the show: "I think there's other benefits for infrastructure spending as well. We use local resources, we create local work, but it also leaves a legacy for the future." – Michael Yardney "It looks like now we're banding together from both sides of parliament, both sides of government, and wanting to build a new, stronger Australia." – Michael Yardney "In order for you to grow stronger, part of you must die." – 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 you were a kid, you probably thought being an adult was all about staying up late and not doing your homework. But now that you're an adult, you know that there's a lot more to it than that. Going to work, household responsibilities, paying the bills – and having your finances in order. And it's easy to get down on yourself when you don't have your finances where you think they should be. But we all have different definitions of success and different ways of measuring how far we've come. If you think about it, most Australians are living paycheck to paycheck and have a level of bad debt. When you realize that most Australians can't pay an unexpected bill of $400 or more, you'll realize that you're probably better off than you thought you were. Today, I'm going to have a chat with Brett Warren about why so many Australians are bad with money. Here's a number of reasons why we are so bad with money? The Dunning-Kruger effect. People's lack of understanding about basic things prevents them from making good decisions. For every $1 raise you receive, your desires rise by $2 or more. You spend lots of money on material stuff to impress other people without realizing those other people couldn't care less about you. You have never been able to predict what the market will do next. This doesn't deter you from trying to predict what the market will do next. You get upset when you hear on TV that the government is running a deficit. It doesn't bother you that you heard this on a TV you bought on a credit card in a home you purchased with a no-money-down mortgage. The single largest expense you'll pay in life is interest. You'll spend more money on interest than food, vacations, cars, school, clothes, dinners out, and all forms of entertainment. You're thrilled that the credit card you're paying 22% interest on offers 1% cashback on all purchases. You work in a stressful job in order to make enough money to have a stress-free life. You don't see the irony in this. You're a pessimist in a world where far more people wake up in the morning trying to make things better than wake up thinking we're all doomed. You try to keep up with the Joneses without realizing the Joneses are buried in debt and can probably never retire. You associate all of your financial successes with skill and all of your financial failures with bad luck. Rather than admitting and learning from your mistakes, you ignore them, bury them, make excuses for them, and blame them on others. You say you'll be greedy when others are fearful, then seek the fatal position when the market falls 2%. You let confirmation bias take control of your mind by only seeking out information from sources that agree with your pre-existing beliefs. You think you're too young to start saving for retirement when every day that passes makes compound interest a little bit less effective. You're investing for the next 50 years but get stressed when the market has a bad day. You don't respect the idea that "do nothing" are two of the most powerful words in investing. You feel especially smart after last year's market rally without realizing that you had nothing to do with it. You seek advice from a doctor to manage your health, an accountant to do your taxes, a lawyer to manage your legal problems, a plumber to fix your plumbing, a contractor to build your house, a trainer to help you exercise, a dentist to fix your teeth, and a pilot to fly when you travel. Then, with no experience, you go about investing willy nilly, all by yourself. You think financial news is published because it has useful information you need to know. In reality, it's published only because the publisher knows you'll read it. Bonus Points: You forget that the single most valuable asset you have as an investor is time. A 20-year-old has an asset Warren Buffett couldn't dream about. You nodded along to all of these points without realizing I'm talking about you. Links and Resources: Michael Yardney Brett Warren - Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in November 2020 – find out more here Shownotes plus more here: 20 reasons you're awful with money with Brett Warren Some of our favourite quotes from the show: "The concept here is that once you earn more, you tend not to save it." –Michael Yardney "One of the reasons we're no good at money, one of the reasons we're scared of making investments or decisions is because of all the negativity out there." –Michael Yardney "We are all irrational with money. We all drive around with one foot on the accelerator and one foot on the brake." –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

An Australian recession is just around the corner. But what will it look like? And what will it feel like? That's what we're going to discuss in today's podcast as I chat with Ken Raiss, Australia's leading property tax strategist and Director of Metropole wealth advisory. We're going to talk about what you need to understand about a recession, why this time will be different, and what you're likely to experience. We're also going to talk about what it will look like after the recession – don't worry, there will be an after and it will be good. We'll discuss how to protect your downside and give you some tips so that you don't miss the opportunities this recession will bring. What will the recession in Australia look and feel like? It's no secret that Australia is going to fall into recession. But what does that really mean? How will this affect you, your job, your finances, and the value of your home or your investment properties? Recessions are always periods of significant opportunity and transfer of wealth. That's just how the economy works. For instance, because of social distancing we aren't going to restaurants anymore, but we're still going to be eating, and some restaurants are prospering with takeaway while other grocery stores supermarkets are prospering because we are buying more food there. So, there's always opportunity. It doesn't always mean that if you win somebody else is going to lose. What is a recession? A recession is when the value of goods and services has fallen in two quarters in a row. Why this recession will be different? Recessions usually come after a period of substantial growth, speculation, and general excess. This time around, the Australian government has sacrificed economic activity in the name of health in response to the COVID-19 crisis. It's not alone in this, as you'd well know, major economies worldwide including major powerhouses like the US and China have done and are doing the same thing, albeit in different ways. What will we experience as we move through this recession? There will be much higher unemployment, it will be harder to switch jobs, and it's reasonable to expect more redundancies and terminations as the crisis continues. This leads to a loss in income and falling wages, which reduces the spending power of affected Australians. Even for those who are holding on to their jobs, uncertainty will rise. The Real Estate market will take a hit because of social distancing and the inability to inspect properties and transact in the normal way. Property transaction numbers will decrease – there will be fewer buyers in the market and there will be fewer sellers placing their properties on the market for sale. Property parties will drop slightly, but investment-grade properties and A grade homes will not fall much in value. Some recommendations: Don't overreact Recessions are largely driven by how the population on a whole is feeling about the economy—not the economy itself. Investors overreact, and some bargains will become available because of this in the stock market, and in the property market because sellers will overreact. Think long term Don't make 30 investment decisions based on the last 30 days of news. Think 10 years down the road. Don't try and time the market. Build a solid financial foundation. Have the right finance strategist. Direct ownership structures to ensure you maximize your upside, protect your risks, minimize tax, and pass on your wealth to future generations Links and Resources: Michael Yardney Ken Raiss Metropole Wealth Advisory Get the team at Metropole to help build your personal Strategic Property Plan Shownotes plus more here: What life looks and feels like in a recession Some of our favourite quotes from the show: "There's no doubt that some bargains are going to become available – in the stock market in the property market – because some sellers are going to overreact." – Michael Yardney "I think people are going to try and time the market. They've always done that. We've always got it wrong." – Michael Yardney "Remember, even if 20% of the population's unemployed, 80% will still be gainfully employed." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you're interested in success, more money or property investment, today's show is for you. First, we're going to talk about the single greatest trait of successful property investors, in fact of people in any field. Then, I'm going to chat to Ken Raiss about land tax. That's a tax I don't like paying, but let's understand a bit more about it, what you can do about it, and if it can ever be avoided. And finally, this week my mindset moment is a special session where I'm going to give you some hints to help you achieve your goals in any area of life, not just investment. The single greatest trait of successful property investors If you cornered me and asked me to come up with one single trait that I have found in common amongst the successful investors I've come across… what would that be? It's that they make decisions and take appropriate action. In his classic book "Think and Grow Rich", Napoleon Hill outlined 17 principles that he found to be responsible for the success of the world's top business leaders of his day. Way back in the 1930s, Hill discovered that all of the most successful people had the habit of making swift and committed decisions. This principle, which is just as relevant today as it was almost a century ago, holds the key to determining the level of success you will achieve. I've found successful investors gather the necessary information quickly, make an informed decision, and then take appropriate action. And even when they don't have all the information they need, they believe it is better to make a decision with some information, than not to make a decision at all. They then take action and gather the balance of the information as they move on. How do successful investors manage to take decisive action? The fact is that successful investors are faced with just as much uncertainty in their lives as the rest of us, however, they manage to take action because they have focus. They have clarity about where they want to be. They know exactly why they are investing in property. They have a time tested property strategy, a finance strategy to see them through the ups and downs of the property cycle and a tax and asset protection strategy to protect their assets. To make the most of our current turbulent economic and property markets strategic property investors will need: Unbiased economic insights. Education based on proven property investing principles and strategies. Guidance from expert investors who have been there, done that. Insider information so you can spot market trends that are "hidden" from the average investor. That is why it is critical to learn from experienced and successful property investors, from someone who has already achieved what you want to achieve and has retained their wealth in the long term. What is the land tax? With Ken Raiss Who should pay it? Does it apply to my home? And can I reduce this major property cost which seems to eat into my rental income disproportionally? These questions are often asked by serious property investors who already have or are in the process of building a significant property portfolio. So to answer your common Land Tax questions I had a chat with Australia's leading tax strategist Ken Raiss, Director of Metropole Wealth Advisory. Land tax is generally levied on the unimproved capital value of the land – not the total property value. Each state has different rules and thresholds of when the land tax will be applied. As is the case for most taxes, it is up to the taxpayer to advise the relevant state department that they are subject to land tax based on self-assessment by submitting either a land tax registration form or a land tax variation form. The land you own and occupy as your home is your principal place of residence (PPR) and is exempt from land tax. There is a threshold (a dollar value) at which land tax will become payable. What is my property is in the name of more than one entity, for example, a couple? The couple is seen as a partnership and only one land tax threshold is available. If either of the persons has land in their own right then at the secondary level only the proportion held together is included when determining the liability in total. When purchasing land or property it is important to apply for a land tax clearance certificate to ensure you will not be liable for someone else's tax or to give you the opportunity to have any liabilities adjusted at settlement. Links and Resources: Michael Yardney Ken Raiss: Metropole Wealth Advisory 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 2020 –find out more here Shownotes plus more here: The single greatest trait of successful investors | What you need to know about Land Tax with Ken Raiss Some of our favourite quotes from the show: "One of the big things that holds many people back, I've found, is fear." – Michael Yardney "You must become a master at visualization." – Michae

If you're like me, you're probably sick of hearing about coronavirus all the time, so good news! Today's episode won't be about the coronavirus. Instead, I'm going to teach you about wealth accelerators. If you don't know what those are, you will know by the end of the show, and you'll understand how wealthy people use them to keep getting richer. Then I'm going to have a chat with Pete Wargent about how Australians aren't moving much anymore. The rich use these 7 wealth accelerators to keep getting richer Do you understand what a wealth accelerator is? Well, maybe you should … because that's the way the rich keep getting richer. Now you've probably heard the expression money begets money. Maybe you've even wondered why it's easier for people who already have plenty of money to make more of it. Or maybe you've wondered why making your second or third million is much easier than it is to make your first million dollars? Well, here's why…. Strategic property investors who have built a true property investment business, grow their wealth faster by using a number of what I call "wealth accelerators" that leverage their returns. Let's look at them…. Other people's money One of the biggest differences between how the rich and average Australian go about building wealth is how they invest…not their own money, but how they leverage and use other people's money. The wealthy have mastered the art of using money they don't have to build their wealth. They used borrowed money to magnify their investment activities and enjoy accelerated returns by borrowing and leveraging against assets they own and use this to acquire even more assets. Other people's time While many beginning investors waste time, energy, and effort trying to do everything themselves, successful investors put their time to its highest and best use. Some beginning investors believe they're saving money by doing their own research, spending weekends house hunting, and competing with agents undertaking property negotiation. However, their lack of experience usually means they get a secondary result and pay a huge learning fee to the market by paying too much for their property or buying the wrong property and missing out on significant future capital growth. Legally take advantage of the tax laws. Believe it or not, the tax laws were written to benefit business owners, meaning if you run your property investments like a business you're able to accelerate your wealth creation by taking advantage of these laws. Essentially, as an employee, your cash flow is a bit like this…. You earn money, you pay tax, you spend what's leftover. However, as a business owner, the pattern is quite different. You earn money, you can spend it on legitimate expenses associated with operating your business and earning income, and then you pay tax on what's leftover. Correct ownership structures. Another wealth accelerator used by the rich is their ownership structures. If you choose the right ownership structures for your investments you can accelerate your wealth. Sophisticated investors own nothing in their own name, or very little in their own names, but control everything in structures such as companies and trusts. Their network. Successful investors realize they don't have to be an expert in every field if they develop a good network around themselves, including a smart finance broker, good solicitor, a property savvy accountant, and a knowledgeable property investment strategist. Having a great network around you enables you to leverage off other people's expertise. Your network of relationships is critical to growing your wealth, not just for what they know themselves, but often for the people they know who could help you. Their mindset. Another leverage point that makes the rich richer is the way they think - their mindset. They just think differently to the average person. The not so rich have a different reality to the wealthy. To put it simply, your reality is what you think is real, which means your perception is your reality. So if you want to truly become wealthy, you're going to need to open your mind to a whole range of new ideas. They own the right assets. When you look at the various rich lists you'll find that most wealthy Australians have either made their money through property or if they've made it through other business ventures they invested the bulk of their money in real estate. Choosing the right property, owning it in the right structures, financing it correctly so that you can use more of other people's money, using the tax laws wisely to pay minimum tax and understanding the law to protect your assets, vastly accelerates your wealth creation. Here's another interesting thing about these wealth accelerators… Combining two more of them doesn't just speed up the growth of your property investment business incrementally. It helps grow it by quantum leaps. So now you understand the wealth acceleration secrets of the rich. We're moving less often Some of

How much will property prices fall during the recession? There's no doubt that turnover of property sales is dropping, and yes properties in some areas are falling in value. But will they drop 10%, 20%, 30% like some people are suggesting? Which headline do you even start to believe? Well, let's not worry too much about the headlines, because today I'm going to have a chat with Stuart Wemyss and we're going to give you evidence-based facts about what could happen so you'll have a better understanding about what's going to happen to unemployment and property prices and what you can do to weather the storm from a finance perspective. Some Topics that Stuart and I Discuss: While it makes sense that higher unemployment could affect property, when you look back, there is no historical relationship between higher unemployment and property prices. Property values have risen fast after previous downturns, while unemployment has lingered. The best approach to property is to take a long-term view The fundamentals and basic concepts of property haven't changed Transaction volumes have dropped, but so far property prices are holding Is timing important when it comes to buying a property during a downturn? The value of investing in an asset that provides most of its return in capital growth instead of income There will be a lot of negative noise around the property markets This can cause people to avoid making decisions Why Stuart wrote a book on finance 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 article - Property market expectations & the impact of Coronavirus Stuart's Book – Rules of the Lending Game Shownotes plus more here: How much will property prices fall during the recession? With Stuart Wemyss Some of our favourite quotes from the show: "It's really hard to be greedy when others are fearful when you keep getting the negative messages." –Michael Yardney "People ask me, "Michael how has your strategy changed for the current circumstances?" The answer is, it hasn't." – Michael Yardney "I believe you've only got the right to say financial wealth is not worth it after you've created 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

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

The coronavirus crisis has transformed our markets back to buyers' markets. But does that mean it's a good time for you to buy property? That's what I'm going to discuss in today's show, and in quite some detail. Of course, like with most things in property, the answer is that it depends. Are you buying a new home or an investment property? How secure is your job? How easy is it for you to get financing? I've got a couple of interesting concepts that I'll discuss during the podcast, but let me answer the question: yes, it's a good time to buy property if you're one of the lucky ones who remains financially secure. Because if you buy well now, you could set yourself up for the growth that's certainly going to come later this year. But there are a lot of ifs and buts and maybes between now and then. In this episode, I'll give you more detail about what I see happening to the property market in the short and long-term, as well as some lessons we can learn from previous downturns. Hopefully, at the end of this episode, you'll have some more clarity about what's ahead. What's ahead if you decide to purchase property? Is now a good time to buy property? Should I hold off and wait for property values to fall further? What's ahead for our economy and the property markets as Australia falls into recession? These are the type of questions I'm regularly answering for our clients at Metropole and for the many journalists who have been asked me for my opinion. And what I have been telling them is that our economy started the year with a little cold that progressed to the flu and now looks more like we have a case of economic pneumonia. What's next? Based on my perspective having been involved in the property market for over 45 years, I believe the impact of this on our property market will ultimately be temporary. Now, this view may be a little different from what others who are forecasting that property values will drop anywhere from 10 percent to 30 percent; but remember …this too shall pass. What will happen to our property markets will depend upon how long we are in lockdown, how soon our economy picks up, the level of unemployment, and importantly the level of consumer confidence coming out of our recession, which will be a good barometer of all the above factors. Of course, if Australia experiences are multiyear downturn, caused by the world economy imploding, then, of course, property values would drop considerably. I know some doomsayers are predicting this, but these are not the type of forecasts made by the credible economists I have been following. What will be the short-term effects of coronavirus on Australia's housing markets? Clearly our housing markets won't be immune to the Coronavirus economic fallout, but the impact on property values will depend on how long it will take to contain the virus. Transaction levels will be significantly impacted over the next two to three months with discretionary sellers staying out of the market. It really makes no sense to put your property on the market for sale at this time unless you really need to. However, there will always be nondiscretionary buyers and sellers who do need to transact over the next little while. It is likely that sellers will discount the price of their properties to conclude a sale, while buyers will take advantage of this to nab a bargain But this doesn't mean property values will plummet. In fact, as an asset class, bricks and mortar has performed exceptionally well during previous economic shocks. This time around, with the banks giving mortgage deferments or holidays, it is unlikely that we will have a large number of forced or mortgagee sales that could undermine market confidence. Many commentators are trying to compare the current markets predict how the current markets are going to perform based on how our property markets performed during previous economic downturns such as the Global Financial Crisis in 2008 or the recession of the early 1990s. However, unlike previous downturns that were essentially financially lead, this downturn is a medical problem that morphed in an economic issue because of a short-term shutdown of our economy which has led to a supply-side downturn (even though we'd like to, we can't go out and buy goods as their supply is limited because the shops are closed) rather than a lack of demand-driven downturn. Because of this and based on the predicted pace of the post-recession recovery, I would expect the pandemic to have a more limited and shorter-lived impact on house prices than either the early-1990s recession or the Global Financial Crisis. What does this mean for property prices? In the short term: "Investment-grade" properties and A grade (above average) homes could fall in value by around -5% B grade (average) homes could fall in value by up -10%, C grade (less than perfect) will be the hardest hit as there will be a flight to quality. The worst affected residential markets will be: Apartments in high-rise

My special guest today is Robert Kiyosaki author of the best-selling book Rich Dad, Poor Dad. When Robert's team reached out to me and asked me if I'd like to have him as a guest, I jumped at the opportunity, because I heard that he's got a message that he wanted to share with Australians about the challenges for our economy ahead, and the opportunities on the other side of the downturn. Now, I don't agree with everything he has to say, but I respect that he's taught millions of people about the basics of financial literacy, so I was keen to hear his opinions. You're going to enjoy the conversation as we talk a bit about his basic financial concepts before we get into deeper topics. Although I don't agree with everything Robert says, I thought I'd give him the courtesy of the airtime he deserves, then after my chat with him, I'm going to share my views. So, be sure to listen to both sides of the discussion, and then you'll be able to use that to inform your own views. Topics that Robert and I discussed: Why so few people are becoming financially independent Robert's advice to people taking on too much debt The shadow banking system The Cashflow Quadrant What's ahead for the average Australian's financial future How bad Robert thinks the crisis is going to get Whether Robert's predictions have become more pessimistic over time The upside Robert sees on the other end Factors other than resilience that it takes to be a successful entrepreneur Whether today's technologies make it easier to get started in business What Robert thinks will happen to house prices in the capital cities Robert's thoughts about superannuation What it was like dealing with Donald Trump before he was president Michael's Thoughts on Robert's Interview Clearly Robert knows a bit about real estate in the United States, where the rules are very different, where the tax regimes are very different, where the markets are very different, where the way you invest is very different. In previous podcasts, I've explained why Australian real estate is different from overseas, but many overseas gurus just don't get it. In Australia, property markets are underpinned by the fact that 70% of properties are owned by homeowners, and half of them don't even have a mortgage against their properties. Of the other half, many are well ahead in their payments, while others are using their mortgage to support the purchase of investment properties that bring cash in. This is very different to overseas. Australia really doesn't have a debt problem – at least, not when it comes to real estate assets. Robert also suggests that your home is not an asset – meaning that it doesn't bring money in, only expenses going out, so it's a liability. And if you accept his definition of an asset, he's right. But that's not my definition of an asset. It's also not the common definition of an asset. I believe a million dollars is an asset if you have it sitting in a bank, or even if you take it out and put it under your mattress. It's an asset even with no cashflow. Robert is a cashflow investor, and that's what's appropriate for the tax rules and the system in the United States, but it has not made people wealthy in Australia. There are four ways to make money on residential real estate in Australia: capital growth, rental return, tax benefits, and manufacturing growth through renovation and development. The most important of those is tax-free capital growth. Unfortunately, too many people look for cashflow from their residential real estate investment, and that's just not how it works in Australia. Similarly, Robert's concerns about our superannuation funds not being fully funded are just not accurate. The average superannuation fund that you and I are part of are fully funded. There's no doubt that Australia's economy, and that of most countries in the world, will experience a recession. But currently, a combination of monetary and fiscal policies should see us start to rebound in the third or fourth quarter of this year. Robert an innovative thinker and an expert in personal finance, but he's not an economist. We have some very astute economists employed by our banks, by the Reserve Bank of Australia, by the International Monetary Fund, and they all see a difficult six months ahead, but nowhere near as negative as the naysayers grabbing headlines at the moment. 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 Robert Kiyosaki's Australian virtual seminar Shownotes plus more here: Robert Kiyosaki Interview – Do what the 99% are not doing! Some of our favourite quotes from the show: "I wouldn't invest the way the way I invest in Australia in New Zealand, where the rules are very different, or in the United States." – Michael Yardney "I'm not suggesting that there's a bubble in Australia, and I think those who think there are, are probably wrong." – Michael Yardney "In Australia, r

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 | RICH HABITS, POOR HABITS 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.

We're heading for the biggest crash since the great depression and it's just around the corner, according to Harry Dent. He's doing a virtual seminar telling anyone who's prepared to listen that we're headed for a stock market crash, a major depression, and the value of your home dropping 40-50%. Today we're going to have a chat with Harry Dent, and I'm also going to have a talk with Pete Wargent.Before we get into the interview, a word of warning. Especially for the fainthearted. Harry makes some really scary predictions. Please listen to the whole interview, and don't sell up your assets before you listen to my views and Pete Wargent's. Topics Discussed With Harry Dent Why Harry thinks that we're approaching an economic winter with fallout worse than the Great Depression Why Harry believes we're in a bubble Whether bubbles have to burst – can't they just deflate? What the demographics are indicating will happen next to our economy The trigger that will burst the bubble Whether Harry believes there are safe ways to invest What business owners should be doing right now What Harry sees happening to the property market in Australia How immigration underpins Australia's real estate market The upsides that Harry sees on the other side of the downturn What Harry would say to people who heard his previous predictions The message that Harry has for Australians in his virtual seminar Topics Discussed With Pete Wargent What a bubble really is and what happens when one bursts Whether the average Australian household has taken on too much debt The government's current response to the crisis What the government has learned from previous downturns When the recovery will begin How Australia's demographics compare to other countries The soundness of Australia's banking system What could cause a collapse in the value of property in Australia Australia's culture of homeownership Where there are likely to be the most difficulties in the property market Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Harry Dent's website Harry Dent's Australian virtual seminar Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: Will the bubble burst or do we burst Harry's Dent's Bubble? | Interviews with Harry Dent and Pete Wargent Some of our favourite quotes from the show: "Well, we have some features of a bubble, yes, but we're actually not in a bubble." – Michael Yardney "Here we've got 70% of properties owned by homeowners, half of them without debt, and those of them that do have debt, it's in the hands of those who can afford it." – Michael Yardney "In the rest of the world, a lot of people expect to be tenants all their life; here in Australia people would rather eat dog food than give up their homes." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

The coronavirus has clearly infected Australia. And it doesn't discriminate rich or poor, young or old. I heard it said that we are all in the same boat. But it's not like that. We are in the same storm, but not in the same boat. Your ship could be shipwrecked and mine might not be or vice versa. For some, quarantine is optimal. A moment of reflection, of re-connection, taking life easy, or having a cocktail or coffee. For others, this is a desperate financial & family crisis. For some that live alone, they're facing endless loneliness. While for others it is peace, rest, and time with their mother, father, sons, and daughters. Some are getting money from the government through JobKeeper and JobSeeker while others are working more hours for less money due to pay cuts or loss in sales. Some want to go back to work because they don't qualify for unemployment and are running out of money. Others want to kill those who break the quarantine. Some are home spending 2-3 hours a day helping their child with online schooling while others are spending 2-3 hours a day to educate their children on top of a 10 to 12-hour workday. So, we are not in the same boat. We are going through a time when our perceptions and needs are completely different. Each of us will emerge, in our own way, from this storm. It is very important to see beyond what is seen at first glance. Not just looking, actually seeing. We are all on different ships during this storm experiencing a very different journey. And in today's podcast, I want to chat about how the coronavirus crisis is going to affect different demographics and generations with leading demographer Simon Kustenmacher. As always you'll find my chat with him educational, informative, and lots of fun, so welcome to today's episode of the Michael Yardney podcast. Topics We Discuss in This Episode: We will see a slowdown of migration intake for at least two or three years Australia will have 0 net migration or negative net migration for 2020 Migration was the main driver for the housing market, so this will have a major impact on property The small towns will be hit first – bad news for regional Australia Temporary visitors like students or short-term workers will be affected as well. This, in turn, affects the short-term rental markets, like student accommodations and Airbnbs. Regional Australia is somewhat reliant on temporary workers, so this is more bad news for them Different generations will be affected differently Baby boomers who are now about to retire will see their super balance shrink by 20% or more Some may have to put off retirement Holidays overseas are also probably canceled for some time to come Local tourism may be on the rise, which may be beneficial for Australia Baby boomers may find themselves supporting adult children who have lost jobs Gen Xers will probably suffer a lot from the coronavirus Xers are at a time in their life when they're most likely to be overextended and spending every penny they earn Millennials are in a better position to ride out the next few years They're reaching family formation stage of the life cycle More likely to have jobs where they can work from home and will want homes that allow for that. Millennials will need larger homes They may look for homes in the suburbs or in satellite cities Gen Z is concerned with global issues They're in a position to ride out the pandemic and recession before kickstarting their career The pandemic may be the kickstart needed for working from home to happen on a large scale Links and Resources: Michael Yardney In these challenging time why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Simon Kuestenmacher - Director of Research at The Demographics Group Follow Simon on YouTube Shownotes plus more here: We're all in the same Coronavirus storm, but not in the same boat. Who will be hit the hardest? With Simon Kuestenmacher Some of our favourite quotes from the show: "Economic growth comes, I guess, from certain efficiencies and producing things more." – Michael Yardney "Even though we all think we're unique and different and special, we're really all much the same as others." – Michael Yardney "Humans aren't logical. We believe we're rational, but we're not, and at the moment emotion is driving a lot of what we're doing." – 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 usually refers to someone with perfect vision, so it's ironic that in 2020 we have such a poor picture of what lies ahead of us. We're moving through challenging, interesting times. We're making history as we work through the coronavirus crisis and how it's affecting our lives, our economy, and our health. But to give some clarity on what could be ahead, I'm going to have a chat with property researcher John Lindeman, who's got some interesting thoughts about what's going to happen in the short term and what's going to happen in the medium to long term. We're going to talk about what's happening in the rental market, what's going to happen to property prices, what's going to happen to the supply and demand ratio, and how the rush for toilet paper relates to property prices. You see.. Many of us were amazed by the recent scenes of people stampeding to buy toilet paper, and some of us may even have joined the frantic rush to grab a few rolls before supplies ran out. Supermarkets were left without toilet paper for weeks afterwards and with toilet paper supplies only now slowly returning back to normal, many of us are left wondering "What was all that about?" This event was a classic "self-fulfilling prophecy", which is when the prediction itself causes the result. The same kind of panic buying events can also occur in the property market. It starts when we hear about certain locations where properties are selling faster. We are urged to be quick or miss out. As more investors rush in to buy, they create the shortage that is being predicted. This is why you need to make sure that any property opportunity you are interested in is backed by actual rental or owner-occupier demand, not just by speculative demand. The COVID-19 pandemic will likely result in significant changes to our housing markets. But you also need to keep in mind that the short-term impacts are likely to be very different from the long-term outcomes. Property markets where buyer demand is falling right now include those relying on tourism, short-term accommodation, and recreation. Markets at risk from falling rents are short-term business, holiday, Airbnb, and student rental locations. This has caused owners of short-term rental properties to list them as longer-term rentals instead, which is leading to a rise in rental vacancies. Rent could fall in some locations as a result. However, this is also likely to be short-lived, because restrictions on movement and assembly are lifted, these markets are likely to bounce back quickly. We expect a general surge in housing demand to occur after the current crisis is over and the restrictions on movement and assembly are lifted. Rental demand will rise as tourism and holiday markets recover and we will experience an influx of migrants from other countries. As a result, many suburbs will experience excellent growth, with buy prices right now at their lowest. 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: The correlation between the toilet paper panic and property prices | John Lindeman Some of our favourite quotes from the show: "Migrants come in and they buy refrigerators and televisions and carpets, and they grease the wheels of industry." "It's easy to forget that even though the external circumstances are different, the downturn in the property cycle is a normal part of the cycle." "The first major lesson in life to learn is how to handle the winters." PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

With so much uncertainty around us, we're even more keen to get a level of certainty. But let's be honest, we're pretty terrible at working out what's going to happen in the future. When the future doesn't cooperate, we spend even more time trying to change the next bit of the future so it winds up more like what we were hoping for. But no matter what you do and how stressed you get; the future is going to take care of itself. Having said that, I am going to spend a little time trying to predict the future with Pete Wargent today. But I want to go beyond the recession we're going to have and take a look at what life might be like after the recession. Clearly the past couple of months have been a period of immense uncertainty. And despite the actions of governments and banks, 2020 is now expected to see a sharp decline in GDP. The world is going to go into recession. Australia is going to go into recession. But at some point, we're going to cross that bridge, the virus will be under control, and things will go back to normal. But what will normal look like? Will it be the same, or will it be different? That's what Pete Wargent and I will discuss today. Some of the topics we discuss: We might be able to start easing restrictions sooner than we'd feared. Any way you look at it, we can expect low-interest rates for a long time to come. The low rates won't apply to every product, but new borrowers will see the lowest mortgage rates they've ever seen. Governments all over the world are piling on new debt. Australia is now borrowing at the lowest rates in history and we're relatively well-placed. Once we cross the bridge, the government will have to do other things to get the economy moving again. The government will need to create jobs, infrastructure projects, healthcare projects. Some people will probably need to stay in the workforce for longer. The government is hoping this will be a business-led recovery, and that the budget will be balanced just by getting the economy moving again. The media has changed. People are turning to different sources. There are fewer hard-copy publications and more internet sources. Retail is going to be different. We were moving to online retail anyway, but this will speed up the transition. Tourism is changing. There are going to be fewer departures, more staycations, and holidays at home. Resources and commodities may go through a boom. People are going to be working from home more. This may lead to a change in the type of properties they want to live in. People will want more spacious properties with room to work. Links and Resources: Michael Yardney Pete Wargent Next Level Wealth 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 2020 in October –find out more here Pete Wargent's new book Low Rates High Returns Shownotes plus more here: What will our economy look like after the Coronavirus led recession - with Pete Wargent Some of our favourite quotes from the show: "There are always opportunities that occur during a downturn." – Michael Yardney "I think we've also changed who we trust when it comes to looking for relevant, for factual information. We're going to different sources." – Michael Yardney "The trend of living in big cities is going to continue, but maybe the sort of properties we're going to live in will be a bit different." – 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 noticed how the desire for economic forecasts surges right when our ability to accurately forecast plummets? That's really the case today. In today's show, I'm going to tell you what I say when people ask what's going to happen to our property markets, and my answer may surprise you. Then, I'm going to have a chat with Dr. Andrew Wilson about who's going to pay for all the government benefits and handouts. I'll also share a mindset moment about how you're making history right now. By the end of today's show, you'll hopefully have some more clarity about your economic future. What's going to happen to property? The truth is, I don't know. But there are some things that are certain. In 12 months' time, it will be April 2021. At some point, we will pass a line that I called the Survival Line.This Survival Line will occur when people's level of desire to move forward overtakes their fear. On the other side of that survival line will be many opportunities to thrive. Not just in property but in business as well. Property investors, business owners, and entrepreneurs seem to be thinking in one of three different ways: Fear focused: Those who are fear focused are panicking. They think the world is coming to an end. They are closing businesses or selling investments. They can't see a future for themselves or their businesses. They won't make it to the survival line, which may sooner than they think. Hibernation mode: People in hibernation mode bunker down. They buy rice, pasta and toilet paper. They want to stay low to ride it out. They will cross the survival line but will experience lots of ups and downs in the meantime and lose a year or so of their life in the process. Positioning themselves for the future: The property investors, business owners, and entrepreneurs who are positioning themselves for the future are those who realize that there is a strategic window between now and the survival line where they can get themselves set up to take advantage of the opportunities that always occur after a severe downturn. In which of these three groups of investors do you want to be? Who's going to pay for the government handouts with Dr. Andrew Wilson Right now, the government is throwing money at everything and anything in the hopes of keeping the economy afloat. But at some point, the lockdown will end and the handouts will stop. Then what happens? Who's paying for all the government handouts? Some of the topics we discuss: Where the money is coming from for the various stimulus packages meant to keep businesses afloat and help ordinary Australians keep food on the table What "quantitative easing" really means Whether the debt created by these stimulus packages will be paid back Whether government stimulus packages will lead to inflation down the road Links and Resources: Michael Yardney Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: I really don't know what's going to happen to property + Who's going to pay for the government handouts with Dr. Andrew Wilson Some of our favourite quotes from the show: "I know that what we're going through currently is temporary, like every other crisis we've been through before." – Michael Yardney "By the way, here's another certainty. On the other side of that survival line, there's going to be great opportunities." – Michael Yardney "At the moment, you may feel stuck at home, but at least you're safe." – 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 drives property price growth? That's what I'm going to discuss in today's episode. Then I'm going to have a chat with Kate Forbes about the surging population growth in Melbourne. Melbourne is likely already Australia's largest capital city. That doesn't mean you can invest just anywhere in Melbourne, but we're going to give you some ideas of what to look for when you're considering where you should be investing. What drives property price growth? Some people say that supply and demand drive price growth. But in my mind, that's too simplistic. There's more to it than that. Let's take a look at the macro effects that drive the general property markets. Household formation: This is how many new households are being formed and the demographics of those households. Land component: Not all land is created equal. Some land is more valuable than other land. It doesn't matter if there's a property on the land – you need to look at the land-to-asset ratio Affordability: This doesn't mean cheap property. Affordability refers to the flow of money – interest rates and money supply. The economy: The economy creates jobs, and jobs create people who can afford to buy homes and upgrade homes. Market sentiment: How people feel about the market. Worries about the market cause potential buyers to sit on the sidelines. Past performance: Recent past performance isn't as important, but long-term past performance can tell you what future performance will likely look like. The returns: What sort of capital growth, rental incomes or alternative investments you can get. The X factor: Unexpected events that drive our markets. Is Melbourne already Australia's biggest capital city? The latest forecast suggests that Melbourne's population is going to overtake Sydney's sooner rather than later. But maybe this has already happened. How is this possible? There are different definitions of what the boundaries of the capital cities are. Some definitions include the Central Coast in the Sydney population count, but leave Geelong out of Melbourne's population count. Remove the Central Coast, and then Melbourne already has a higher population than Sydney. Even with the given definitions, though, Melbourne is on the way to having more people than Sydney by 2026. Why has Melbourne done so well? There are a few reasons: It's consistently rated one of the most livable cities It's had significant economic growth, which means more jobs It's one of the more affordable cities Links and Resources: Michael Yardney Kate Forbes – National Director – Property Strategy at Metropole Organize a time to speak with Kate Forbes or her team at Metropole by clicking here Shownotes plus more here: These are the factors that drive property price growth | Is Melbourne already Australia's biggest capital city? Some of our favourite quotes from the show: "When fear or greed comes into the market, when investors come into the market, we get these big swings." – Michael Yardney "If you fast-forward four years, Melbourne's population is going to increase about 10%" – Michael Yardney "Buy the best property you can afford. No question about that." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

The world completely changed a month or two ago. You're socially distancing, you're washing your hands a lot more, you've been sitting at home in quarantine for how many days now? Maybe you've lost count. How are you going to take advantage of this time? When you find yourself struggling through times of uncertainty, like we all are right now, you've got a choice to make. Are you going to be a victim of circumstance or a warrior for growth? That's what we're going to discuss in today's podcast, which is a joint episode between my podcast and The Elephant in the Room podcast. Change doesn't mean you have to accept a fate you don't want. This is the time to focus on taking advantage of the opportunities that are going to arise in our property markets when we get to the next stage – when we cross that proverbial bridge. In today's podcast, we'll be discussing wealth, property, and finance with Chris Bates and Veronica Morgan, the hosts of the Elephant in the room podcast. Some of the Topics We Discuss: We've survived market downturns in the past. That experience is valuable. Learning from prior experiences can help us get through this one. In times of uncertainty, some things are certain. For example:- In 12 months' time, we'll be in April 2021. Somewhere between now and then, we'll come to a survival line. Once we cross that line, desire and greed will overcome fear. Fear is holding a lot of people back, but that won't last. There are risks that buyers and sellers need to be thinking about right now. For example, loan preapprovals from before the coronavirus are now invalid. Certain sectors of the market are going to suffer more than others. Immigration is probably going to slow down for a while but will pick back up in the long run. People want to come to this country, so we can afford to be selective. Some industries, such as the travel and manufacturing industries, are probably going to be different after this. Some attitudes toward homeownership may change. There could actually be more owner-occupier demand. People may also want different sorts of homes. If working from home is working out for most people, we may need fewer office buildings and homes with more at-home workspace. Our attitudes toward debt may change. Some may not want to buy a new car or upgrade their home, because they'd rather avoid debt. The density in Sydney CBD is as high as it is in Wuhan. People may not want to live in those high towers anymore. People may have more choices about whether they work from home or in the office in the future. The biggest risk in development lies with the investor. The less experience an investor has, the bigger the risk. Links and Resources: Michael Yardney Chris Bates – Wealthful Veronica Morgan – Good Deeds Buyers Agent The Elephant in the Room Podcast Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Show notes plus more here: Don't believe everything you hear about property - with Veronica Morgan and Chris Bates Some of our favourite quotes from the show: "If you're going to look for bad news, you're going to see it, but if you look for good news, there's also a lot of good news out there in the medium to long term." – Michael Yardney "There is a segment of the market that's overcommitted, but overall, the fundamentals are strong with owner-occupiers usually in good financial condition." – Michael Yardney "That's what people are paying us for in these uncertain times. To give them some clarity. To give them some direction. To give them better results." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

The world completely changed a few weeks ago. Most of us are locked down with social distancing policies. How many days have you been at home now? Are they starting to blend together? But it's times like these when focusing on your personal and business growth becomes more important than ever. And that's what we're going to talk about today. Even if you don't have a business and you're not an entrepreneur, though, if you want more success in your life, today's message is relevant for you too. The Imperative Nine In troubling times of high levels of anxiety and uncertainty you need structure, then more than ever. Here are nine things you can focus on, practical steps you can take to help navigate your way through these confronting times, to help you cross that bridge to the inevitable upturn. We call them the Imperative Nine. Your Team is Afraid This is a time when you need to focus your efforts and actions on others. As a leader, it is imperative that your team see you as in control and on the job. They need to know that there is someone (you) at the helm and steering your organization through turbulent waters. Your Clients are afraid In times of commercial upheaval and uncertainty your clients will be afraid. They will be afraid for their families, their work, their business and the future in general. You may not be able to remove that fear completely but again you may be able to normalize it. The Public is afraid. As a business owner, the community will look to see what you are doing, what confidence you have and remember this, you can't complain about a lack of consumer confidence if you are part of feeding that lack. Risks have to be minimized In every situation like this there are clearly identifiable risks. There are always some unknowns as well but now is a time to critically examine your business, understand the risks which have and will come from the current situation and work to minimize them. Information needs to be accurate and limited It is important that you stay up to date but if you took to heart every piece of news that the mainstream media delivered you would soon be completely overwhelmed. Opportunities abound Whatever your business, there will be some opportunities out of the current situation. It is your job to identify them and then act on them. Pivot your message The message you are putting out to your clients and prospects now has to match the current climate. Have a communication plan Good communication in business never just 'happens'. It is a part of a plan and a schedule. Make it Proactive Sitting back waiting for the phone to ring or emails or messages to come to you is a useless strategy in the best of times. 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 Show notes plus more here: https://propertyupdate.com.au/podcast-9-things-business-owners-should-be-doing-about-coronavirus-but-are-not-build-a-business-not-a-job-podcast/ Some of our favourite quotes from the show: "You've got a choice to make. Are you going to be a victim? Are you going to be a victim to the circumstances, or are you going to be a warrior for growth?" – Michael Yardney "It's what you do now that's going to determine how successful you are when we cross that survival line." – Michael Yardney "I'm giving as much free information as I can. I'm not looking for something in the short-term. I'm playing the long-term game." – 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 know that as investors and even as entrepreneurs or businesspeople we can sometimes be our own worst enemy? It's not because of the decisions we make, the opportunities we consider or the investments we miss out on, but rather, it's due to the way we think. It's because of our Cognitive Biases. You see, most of think we're rational people. But we're not. There is no shortage of cognitive biases out there that can trip up our brains. Cognitive biases are patterns of thinking that don't rely on logic. And if you don't check your reasoning, they can lead to judgements and decisions that negatively impact your business. You can't eliminate them all, but you can become more aware of how they function and ways to counteract them. And that's what I'm going to discuss today with Pete Wargent Types of Cognitive Bias Confirmation bias People tend to search for information that confirms their view of the world and ignore what doesn't fit. In an uncertain world, we love to be right because it helps us make sense of things. We do this automatically, usually without realizing; partly because it's easier to see where new pieces fit into the picture puzzle we are working on, rather than imagining a new picture. Confirmation bias also prevents us from looking objectively at an investment we've already made. One way to counter confirmation bias is to read things you're going to disagree with. In other words, read all you can from reputable sources, whether it's confirming your original view or not. Another is to look for reasons your strategies could be wrong, rather than right. Anchoring bias We have a tendency to use anchors or reference points to make decisions and evaluations, and sometimes these lead us astray. Anchoring explains why you'll pay $6 for an hour of parking after seeing $10 at a car park down the street. Whether we like it or not, our minds keep referring back to that initial number. It's important for you to evaluate any property deal based on its own fundamentals and all the information you have available from your research and due diligence at the time. Awareness bias How are your investments performing – are you happy with the results you're getting? There's a chance that even if they're not doing so well, you may not even recognize it. In fact, it's been shown the poorest performers in all arenas of life are the least aware of their own incompetence. Lacking the capacity to realize how badly a task is performing is known as the Dunning-Kruger effect. If you're the smartest person on your team you're in trouble. It's best to work with mentors and professional advisors. Positivity bias Many people view residential real estate positively, considering it an asset class through which they can grow their wealth – and they continue to do view it in this light, even if their investments fail to prosper. In the face of lack of capital growth, prolonged vacancies or inflated expenses, they still continue to believe that their investment will turn the corner "one day." The problem with this is that when all signs point to a dud investment, it likely is one – but positivity bias can stand in the way of an investor taking action to rectify the situation. Overconfidence is a real risk for property investors – one of the best things an investor can do is admit what they don't know and get a good team of professionals around them. Negativity bias Just as some investors can be overly positive this is the tendency to put more emphasis on negative experiences rather than positive ones. property information People with this bias feel that 'bad is stronger than good' and will perceive threats more than opportunities in a given situation. Psychologists argue it's an evolutionary adaptation – it's better to mistake a rock for a bear than a bear for a rock. Fact is: there will always be property pessimists around telling us why not to invest and reminding you of all the things that can go wrong and the reality of real estate is that it is a cyclical investment class. However, you can minimize your risks and maximize your upside if you educate yourself and become financial fluent, follow a proven strategy and get a good team around you. Status quo bias This describes our tendency to stick with what we know whether or not it's the best course of action. It could be as simple as buying the same name-brand groceries that you always have or as complex as holding on to that underperforming property. People do this partly because they want to avoid costs, even when it's apparent that those costs will be offset by a larger gain, being the long-term growth of a better performing property. Psychologists have shown that most of us disproportionately stick with the status quo because "doing nothing is within the power of all men" as we often weigh the potential losses from switching from the status quo more heavily than the potential gains. That's why all the successful investors, businesspeople and entrepreneurs I know have ment

Most of us have accepted the situation we're in. We're adapting to a new normal. The bulk of the world is in official or unofficial lockdown, we're taking the threat seriously, and we're seeing unprecedented government support. We're reminded of the importance of family and friends. We're locked in with them or keeping in touch with them virtually. What else has become clear is that we're all equal. This virus doesn't discriminate between background, education, religion, or political affiliation, or net worth. This crisis has revealed that there are no real global borders. We're all connected, and this virus doesn't need a visa. Today, I'll be talking with leading demographer Simon Kuestenmacher, Director of Research at The Demographics Group, and a columnist with The Australian who is globally recognised as a rising star in the field of data management and insight and a regular guest here on my podcast, about his research into coronavirus, who it's going to hit the hardest, and what to watch out for. Some of the topics we discuss: The virus seems to have made an early beeline for the more well-to-do suburbs of our capital cities. Why has this happened? Everyone can be attacked. The virus doesn't discriminate. But because this is a virus that came from overseas, people who travel overseas are likely to be impacted first – and that means more well-to-do Australians. Where is the largest concentration of our aged population? In lieu of medical data, because we don't have much of that, we can look at demographic data to see where the people who are most at risk live. Tasmania and South Australia are the two oldest states and have the bulk of the older population of Australia. Will the virus be contained in our capital cities, or will it spread to the less densely populated regional town centers? It will most certainly spread. Two-thirds of the Australian population lives in just 5 cities. The virus entered through our ports and airports spreads in the capital cities and will spread out from there. Currently, our main defense is social distancing. How will Australia's low-density suburban sprawl make us different from the more densely packed residents of the Chinese and Italian cities? Our low density in this particular aspect is a gift. It's easier to stay sane in a 3-bedroom house with a garden than a 1-bedroom apartment. For mental health, we're in a good situation. But we do have Wuhan-esque conditions at least in some parts of our country. Australia's workforce comprises 13,100,000 full-time and part-time employees. How will various workers in different industries be affected? Hospitality is a fragile sector because it relies on people being out and about. Lots of workers are young or temporary workers from overseas. This is connected to property, because those workers tend to also be renters. Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics GroupIn these challenging time why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Show notes plus more here: https://propertyupdate.com.au/podcast-coronavirus-whos-going-to-be-hit-the-hardest-with-simon-kuestenmacher/ Some of our favourite quotes from the show: "I think at some stage, the desire to move forward is going to overcome our fears." – Michael Yardney "A fuzzy future has little pulling power." – Michael Yardney "You've got to be a dreamer. You've got to have a great vision of your future." – 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 would you like to know what the property values are going to be at the end of the year? Would you like me to forecast what property values are going to be in two to three years' time, or which areas will have the best growth? Of course! Everyone likes forecasts. We want certainty. That's especially true in today's market with things are so uncertain. But let me bust a myth about forecasts. The myth is that forecasts work. No they don't! Today, I'll have a chat with Pete Wargent about forecasts, why they don't work and what you can do to have a better idea about what's to come. At the end of the conversation, you'll have a better understanding of what you should be looking for instead of forecasts. And I'll also share a mindset moment about personal development. What's a better way of preparing for the future? The problem with forecasts is the same problem that makes chess such a difficult game, or that makes it so difficult to win the lottery. There are just too many variables. Those variables are impossible to predict and therefore make it impossible to forecast real estate markets accurately. A better option is to think in terms of probability. You want to be approximately right and avoid being completely wrong. It's important to question the models and forecasts. If they don't ask and answer the right questions, they won't provide accurate information. When evaluating a forecast take your gut instincts into account. You can't rely on this completely, but your instincts may be trying to relay important information. You should also consider the track record of the forecaster, and the model that they're using. Remember, asking the right questions is essential. Ways to prepare for uncertainty: Be somewhat flexible – avoid being narrow-minded. Understand and limit your downside. Seek unlimited upside – if you pick high-quality assets in the right areas, over the long run, the compound growth has seemingly limitless upside Mingle – Great things happen when you meet people face to face Links and Resources: Michael Yardney Pete Wargent Next Level Wealth 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 2020 in October –find out more here Pete Wargent's new book Low Rates High Returns Show notes plus more here: https://propertyupdate.com.au/podcast-here-s-why-property-forecasts-fail-but-why-we-still-need-them/ Some of our favourite quotes from the show: "Some forecasters just keep getting it wrong, but they keep kicking the can down the road." – Michael Yardney "I think the aim is to just do better than average because average isn't very good." – Michael Yardney Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We're in the midst of a health war. It's a unique war, with every country on the planet united to beat the same enemy. It's a silent enemy, an invisible enemy. A deadly enemy. This is a crisis that no one alive has faced before on this scale. But we're going to get through this. On today's show, I'm going to have a chat with Ken Raiss, director of Metropole Wealth Advisory, and together we'll answer four common questions that we're being asked about the crisis by clients. What's going to happen to the property market in the short term? What's going to happen to the property market in the long term? Are we going to go into a recession? What does that mean for you? What should you do about all this? What's ahead for the property market in the short term? Our property markets are most likely going to shut down for a while due to social distancing and lockdown. That shutdown could last for weeks. But the same thing happens to the market every year around Christmas time. This may be longer or shorter, but it's not unheard of. One big difference between this shutdown and an ordinary seasonal shutdown is that there may be less confidence when we start up again. However, not all segments of the market will be impacted equally. The upper and lower ends of the market are likely to suffer more. But middle-class areas are not going to suffer as much and will not go down much in value. Property markets will likely recover quickly because property is such an important part of our economy. Property and construction employ a lot of people. The government is committed to preventing us from getting into a deeper recession than we need to. They are supporting us in the lockdown and will help the industry move on in the next phase. The property market has both discretionary buyers and non-discretionary buyers. Discretionary buyers may choose to sit on the sidelines for a while, but non-discretionary buyers will still need to buy. Because of this, the property market tends to be resilient. What's ahead for the property market in the long term? We don't really know what's going to happen. But while this issue will have an impact and will have a short-term effect on our property market, in a year, five years, or ten years from now, this will probably have no lasting effect on the market. The property market has survived bird flu, swine flu, the global financial crisis, SARS, 9/11 and more. We have strong fundamentals – population growth is high. Immigration may drop for a while, but when this is over, people will still come to Australia. Interest rates are low and will remain at this rate for at least another three years. Household composition is changing, and we'll need more housing to accommodate the same number of people. There will also be more people renting. For a long time, close to 30% of people were renting. In the future, it may be up to 40%, and investors need to provide housing for those renters. First-time buyers started the year strong, and they'll be back because they're in it for the long term. In general, the property fundamentals and banking system are both sound. Will we go into recession? Yes. But you shouldn't panic. A recession only means that prices aren't going up as much as they were historically. This recession may be similar to the current rate of infection, where most people who are impacted are impacted mildly. 60% of home buyers live in their homes, which means there is less volatility in the property market than in the share market. During the Global Financial Crisis, house prices fell, but only marginally. And during this crisis, the government is spending a lot of money to prevent the recession from being as deep as it could be. Recovery will be faster for property than for other areas, especially for those who bought investment-grade properties. What do we do? Some people are going to run into financial difficulties during this time. If that's you, you should speak to your bank and your mortgage lender. Presently, you won't be penalized if you need to reduce payments or even pause your repayments. You won't even take a hit on your credit rating. The government has a moral obligation to help people out when they've been ordered to stay home and stop working through no fault of their own, and the banks are on your side in this matter. On the other hand, some people with sound jobs strong financial positions are in a position to do something during this period. If that's you, this is a good time to get a strategic wealth plan. You need to understand where you are now and make a plan to get to where you want to be. Links and Resources: Michael Yardney Ken Raiss, director Metropole Wealth Advisory In turbulent times like this why not get the team at Metropole on your side – find out more here Show notes plus more here: https://propertyupdate.com.au/podcast-the-4-big-questions-investors-are-asking-now-about-property-and-covid-19/? Some of our favourite quotes from the show: "Having been around for a lo

It's a common belief that becoming rich requires more than a little bit of luck. But is this true? Or is it just that those who are not that rich find it easier to believe that those who've made it are luckier than they are talented? My reading suggests that luck, whether random or self-made is a common denominator of wealthy people. In today's episode, Tom Corley and I will talk more about this. But part of the conclusion really is that if you want to be rich, you do need a bit of luck. And while you don't have control over the circumstances of your birth, you do have some control over the circumstances you manufacture after that. As Tom Corley says, the rich are in the business of manufacturing luck. 4 Paths to Wealth There are actually four paths to wealth: The saver/investor path The big company/climber path The virtuoso/expert path The dreamer/entrepreneur path. You can be on more than one path. And you can choose which path or paths are right for you. Creating Your Own Good Luck Three of the paths to wealth involve creating your own luck. The rich create their own luck, and it's different from other types of luck. The rich put themselves in the right places at the right times 4 Types of Luck Random Good Luck Random Bad Luck Opportunity Good Luck Detrimental Bad Luck No one has control over random good luck and random bad luck. Opportunity good luck is the type of good luck that the wealthy create. They do certain things every day that create the opportunity for good luck to occur in their lives. We call these things Rich Habits. The Rich Habits are various habits that self-made millionaires either learned from a parent, mentor or through the school of hard knocks. Detrimental bad luck is a type of bad luck most of the non-rich create. They do certain things every day that manifest this bad luck. We call these things Poor Habits. These Poor Habits are picked up at home, from parents, from friends in the neighborhood or by following the wrong people. Because many of the Rich Habits are Keystone Habits, adopting just one can help you automatically eliminate two or more Poor Habits, which are overwhelmed by each Rich Habit you forge. As you adopt more Rich Habits, those good habits will eventually create the opportunity for good luck to occur in your life. Rich Habits are like little miracle workers. They not only help improve your life, but they also help change your luck. Links and Resources: Michael Yardney Metropole 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 Show notes plus more here: The Rich are in the habit of manufacturing their own luck Some of our favourite quotes from the show: "Finding luck requires you to step outside your comfort zone." – Michael Yardney "Remember, courage is not the absence of fear, but it's the ongoing pursuit of something while you're still worried." – Michael Yardney "I've found that luck finds positive people, people who seek out opportunity." – 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.

Will COVID-19 crush our property markets? COVID-19 is a health issue, but the fallout from it isn't just health effects, it has social and economic effects too. And yes, it will affect our property markets. That's what we're going to talk about today. In addition to my own thoughts, I'll be talking to Dr. Andrew Wilson about what's going to happen with our property markets, whether all this will cause a recession, and what you can do. Then, I'll have a chat with Andrew Mirams, director of Intuitive Finance. We'll talk about how the banks are doing, what you can do and how the banks can help if you're in financial trouble, and what you can do if you're not in financial trouble and are in a position to use your finances strategically. Things are changing fast right now, but hopefully, after today's episode, you'll have a bit more clarity about where the property markets and finance are headed. Property Insiders with Dr. Andrew Wilson The property market is at least partially shut down and may be shutting down completely soon. However, we will get through this, and the market will reopen for business. And when that happens, we'll be in a better position than we might have been under other circumstances. COVID-19 is a health issue, not an economy issue. The fundamentals of the economy are still strong. The government and Reserve Bank are looking into ways to lessen the immediate impact on citizens who will experience financial difficulties because of this pandemic. Yes, we will go into a recession. But we're in a better position to recover than we were following the global financial crisis in 2008-2009. There are large buffers of capital and liquidity in the system. We have a strong banking system, and the banks are stepping in early to help. Consumer confidence is likely to fall in the near future, and of course, that will have an effect on the market. But experienced investors who have lived through a couple of property cycles and who have secured jobs tend to see this as a short-term blip, not a reason to change their long term investment journey. The banks are open for business Despite the crisis, banks are open for business. In fact, they've been given a $90 billion lifeline to go out there and lend money and stimulate the economy. Bank regulators are taking a common-sense approach in these uncertain times, and our banks are lending more freely in the short term than they have in recent times. If you've run into financial difficulty because of COVID-19, there are options. If you are paying more than the minimum required repayment on your mortgage you can reduce the repayment to the minimum repayment anytime without charge with your lender. You may also be able to take a repayment holiday or payment pause. Just remember that the lenders aren't waiving your repayments or obligations but simply deferring them. Asking to pause or postpone your interest payments in these unusual times will not affect your long-term credit rating as it normally would do. If you're in a good financial position and you have a sound job, this is a great time to take advantage of the property markets. Remember, the underlying fundamentals of the economy are still strong, and good investment-grade properties will still hold their value. If you're in a position to do so, now is a good time to take action and set yourself for the opportunities that will present themselves as the market moves on. Links and Resources: Michael Yardney Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Subscribe to my weekly Property Insiders Video chats with Dr. Andrew Wilson at www.PropertyInsiders.info Andrew Mirams, director of Intuitive Finance In turbulent times like this why not get the team at Metropole on your side – find out more here Show notes plus more here: https://propertyupdate.com.au/podcast-will-the-pandemic-kill-property-property-insiders-with-dr-andrew-wilson/ Some of our favourite quotes from the show: "The underlying factors are still positive." – Michael Yardney "I think we've come into this terrible crisis with a much better situation with our banking system than we did with the global financial crisis in 2008-2009." – Michael Yardney "If you're in trouble, ask. Don't try and sort it out 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

As a business owner, as an entrepreneur, as an investor, you're going to be facing a lot of challenges in 2020. In fact, the year has already brought us our fair share of challenges. Some have come from inside Australia; some have come from overseas. And that means things are going to be tough this year. Despite those issues, some business owners, investors, and entrepreneurs are going to do a lot better than others, and today we're going to discuss the reasons why. Even if you're not in business for yourself, this show is going to be useful for you, because a lot of the information will help you as a property investor. 3 common traits of business owners that succeed Clarity – they know exactly what they want. They have mission/vision/purpose They have the right mindset – everyone I'm talking to who is crushing it says they have to work even more on their psychology. The more you win the more you move out of your comfort zone and get into new areas of fear, anxiety, and doubt, so you need to keep upgrading your psychology – the very best spend time on this every day Their infrastructure and systems – They set up to allow you to grow and keep delivering high levels of service and great levels of support. 3 big questions you need to ask yourself What exactly am I committed to achieving this year? Focus and go all in. What mindset rituals must be in place to help me achieve this? The best have rituals to help them persevere through the tough times. Use a project management tool – set it up to show things I want to do, things I'm doing, things I've done What systemic change is required to sustain this new level of growth? The best are building their infrastructure and systems. Most business owners and entrepreneurs struggle because they're not asking themselves these questions. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Join us at Wealth Retreat 2020 in join- find and more and register your interest here Some of our favourite quotes from the show: "If other people could solve the problems, they'd be the boss." – Michael Yardney "I know that the difference between the successful business people, entrepreneurs, and investors I see and the average person is the way they think." – Michael Yardney "Everyone, all of us, you, me and the various successful people still have our own limiting beliefs, so, therefore, we help them get rid of those." – Michael Yardney Show notes plus more here: The 3 reasons why the best entrepreneurs and business owners are crushing it in 2020 | Build a Business, Not a Job Podcast 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.

Yes another podcast about the coronavirus, but you really need to listen to this one. What started as a little cold for our economy has progressed to the flu and now sounds like it could be a dose of economic pneumonia. Look where we are today… Dwindling confidence, a major stock market crash, talk of recession, workplaces closing, major events cancelled, social distancing. What next? Well…panic I guess There is little doubt that it is serious. And I don't want to make light of COVID-19 based on my view, having been involved in the property market for over 45 years, and those of Dr Andrew Wilson who I'm going to have a chat with today, we believe the impact of this on our property market will ultimately be temporary. Now this may be a little different to what some others are suggesting, but please listen to today's show as I believe I will be able to bring some calm to the storm. Remember …this too shall pass. There is no doubt that the virus will cause illness is some people and tragically even kill others. And even though I'm going to be concentrating on property today, I don't want people to think that I don't care about other people, their health and those in need. I'm also concerned for those whose jobs are at risk, and who may suffer from isolation or mental health issues from restricted social exposure. But I'm not qualified to discuss those matters, so listen as I first give some of my views and then chat with Dr Andrew Wilson. We will explain how worried you should really be, the possibility of Australia going into recession and what that could mean for you, how does downturn may compare with other downturns that we have experienced, and also the perfect storm that could come out at the other end. Now the show was recorded in the third week of March, a few days before it is going live on my podcast, and I'm sure a number of things have changed between now when I'm talking to you when I'm recording the show and when you officially listen to it. However, the message I'm trying to get across to you today is not really be time sensitive. You see…the main messages I want to get across today is that taking a long-term perspective always outsmarts short-term reactive thinking. And from mine, it's always property fundamentals that really matter and drive our markets in the long term. Things like demographics, supply and demand, affordability, availability finance, and local economic trends. We all know the old saying, being fearful when others are greedy and be greedy when others are fearful, but it's always difficult to invest when everyone else is running around thinking the world is coming to an end. But now that I have invested in close to 8 cycles, I have found exactly these conditions the present the best opportunity. What we are currently experiencing is like a terrorist attack which will deliver a short sharp blow to our economy rather than experiencing a long drawn out war. Yes our economy fall into recession, but this will be different to previous recessions as we will explain in the podcast, and the economy is likely to rebound in the second half of this year at which time we are likely to be experiencing a perfect storm for property. Our government, and the governments around the world have learned a lot about handling monetary and fiscal policy is during economic downturn's and they are hellbent on making this downturn as painless as possible. Sure unemployment will rise little bit, probably to 7%, but that still means at 93% of people will have a job. And if the government lives up to its promises, it's stimulus packages will grease the wheels of industry and keep more of us employed. One of the major lessons I have learnt from previous downturns is the importance of the taking a long-term perspective which always outsmarts short-term reactive thinking. And from mine, it's always property fundamentals that really matter and drive our markets in the long term. Things like demographics, supply and demand, affordability, availability finance, and local economic trends. We all know the old saying, being fearful when others are greedy and be greedy when others are fearful, but it's normal human nature to find it difficult to buy your new home or invest when everyone else is running around thinking the world is coming to an end. But now that I have invested in close to 8 cycles, I have found that it is exactly these conditions the present the best opportunity. So now is the time to get prepared to take advantage of the opportunities that the market will offer. It is likely that human nature will cause many would be advised to sit on the sidelines for a little while until things become more clear, which means that sellers will be more amenable to accepting offers rather than holding out for a top price. Remember don't make long-term decisions like buying a home or an investment property based on the last 30 minutes of news. There is no doubt there will be opportunities in the market for those who ar

In today's show, I've got a special interview that I'm sure you're going to enjoy. More importantly, it's one where I know you're going to learn something that will help you as a businessperson, investor, or entrepreneur. If you're a regular listener, you know that I enjoyed a 6-week cruise at the beginning of the year. And on that cruise, I befriended Lord Digby Jones, a politician who sits in the House of Lords in the UK and a renowned social commentator. I asked him to record a chat that we had in our cabin during the cruise, and that conversation is what you'll hear today. What's this got to do with property in Australia? The property market is significantly affected by the world's economy. His fact has become only too obvious in the last weeks. So in today's episode, you'll hear Lord Digby Jones talk about some fundamental changes that he believes are going to happen over the next decade, and that you'll need to understand if you want to be successful during that time. We're going to chat about Brexit, the Asian century and what that means for Australia, the benefits and risks of social media coming in the next decade, the possibility of social upheaval over the next decade, and Lord Digby Jones's advice to a young couple breaking away from the family business and starting off on their own – Harry and Meaghan. Some of the topics we discuss: Whether the current pessimism is warranted The opportunities coming from Southeast Asia Trade wars on the horizon The history of the growth of China and where China is going now The hold that social media has over the public Facebook's responsibilities in regard to their platform Political correctness on other social media platforms What advice Lord Digby Jones would give to Harry and Meghan Predictions for things we'll be doing or thinking about differently by the end of the decade Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Lord Digby Jones Show notes plus more here: Some fundamental changes you need to understand if you want to be successful over the next decade Some of our favourite quotes from the show: "There's a lot of political correctness at the moment. In other venues, you can't say the wrong thing without offending somebody." – Michael Yardney "That's one of the areas where Australia is more fortunate. It has got strong migration, 66% of our population growth is coming from targeted migration of people of household formation age, skilled migrants and people coming in with business skills and business money." – Michael Yardney "I think the good news is we're living in the best time in history in one of the best countries in the world. We've got a lot to look forward to." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

There are a lot of scary headlines at the moment. All of the anxiety in the air can even make an optimistic person a little nervous. In today's episode, I want to bring some perspective to the frightening headlines by explaining some of my thoughts on the current situation. Then, I'll be talking to Dr. Andrew Wilson, who's also been around for a while and has seen and experienced things like this before. By the end of the episode, I hope you'll be a little less scared, and also have some facts to work with. Remember, most of the things we worry about actually never happen. Seven reasons why I'm confident in our property markets despite the coronavirus scare What's ahead for our property markets in light of the coronavirus issues? Are they going to crash like the stock market has? Is Australia going to fall into recession? That's a question on the mind of many investors in light of the economic woes around the world and the uncertainty surrounding the coronavirus. Now I'm not downplaying the potential medical issues related to the coronavirus. In fact, I've looked up the definition of a "pandemic" and this definitely is a "pandemic" even though our health authorities are not prepared to call it one. Clearly many Australians will come in contact with the virus over the next couple of months, some people will suffer cold and flu-like symptoms while other more frail members of the community will succumb to the germ. And that is tragic. At the same time, many businesses will suffer, particularly those in hospitality, tourism, education and those whose supply chain from South East Asia will be affected. But based on my perspective having been involved in property for over 47 years, while this issue will have an effect on our economy and a short-term impact on our property markets because consumers will become less confident and sit on the sidelines waiting for things to become clear, I believe that a year from now, and in particular five years from now. and most certainly in 10 years from now, this pandemic will have had no influence on where the Australian property market will end up and the value of your and my home at that time. But this is the first global crisis we're experiencing in the social media age and we've learned that: Information spreads fast and False or sensational information spreads faster. So, remember these wise words... As Warren Buffet said: "Be fearful when others are greedy and be greedy when others are fearful." Homebuyers and long-term investors who have a secure job and income and pre-approved finance should take advantage of any short term downturn in our property markets to set themselves up for the next phase of the property cycle. As I said, I'm comfortable with the underlying fundamentals supporting our property markets int the medium to long term. Let's look at a couple of them… Population growth Australia's population is growing by around 360,000 people per annum, meaning we need to build around 170 to 180,000 new dwellings each year to accommodate all the new households. Declining housing supply The oversupply of dwellings in many Australian locations is now dwindling and there are very few new large projects on the drawing board. Considering how long it takes to build new estates or large apartment complexes, we're going to experience an undersupply of well-located properties in our capital cities in the next year or two. Interest rates are low and will go down further The prevailing low-interest-rate environment is making it easier to own a home, either as an owner-occupier or investor. Smaller households are becoming the norm Pretty soon Millennials will make up one-third of the property market and their households tend, in general, to be smaller as are the households of the booming 65+ year old demographic. More one and two people households mean that moving forward, we will need more dwellings for the same number of people. More renters Soon 40% of our population will be renters, partly because of affordability issues but also because of lifestyle choices. First home buyers are back First home buyers are back with a vengeance, in part thanks to the government's new scheme to encourage them, but also because of cheap finance and rising property values. As opposed to established homebuyers who have a "trade-in" that is increasing in value, if first home buyers wait to get into the market they're finding the market moving faster than they can save, so they're hopping on board the property train as quickly as they can. The underlying fundamentals are strong Sure our economy is facing challenges, and the share market is volatile, but our property markets are underpinned by the fact that 70% of property owners are homeowners who are there for the long term. They're not going to sell up their homes - they'd rather eat dog food than give up their homes. And Australia's banking system is strong, stable and sound. Property Insiders With Dr. Andrew Wilson In the short term, the virus

What are the common mistakes made by beginning property investors? In today's show, we're going to discuss those mistakes and how to avoid them. This episode is one of two that I recorded with Marc and Sally from Finder.com.au. If you heard last week's episode, you know that we previously discussed the common mistakes that first-time homebuyers make. In this session, Mark and Sally asked me about the common mistakes that beginning investors make so that they, as beginning investors, could avoid them. But there's a lot of useful information for more experienced investors in our conversation. Listen in to hear the interview, which is followed by today's mindset message. How to avoid property investing mistakes Most property investors are trying to achieve financial independence. But about half of the people who buy an investment property sell up in the first five years. And they often end up selling at a loss, as well. As you can imagine, this does not help in reaching financial independence. Take a look at some common beginning investor mistakes to avoid. Trying to go it alone You should be investing as part of a team, not by yourself. Having a property strategist and a buyer's agent protects you and helps to level the playing field. Not doing your research Location does the bulk of the work when it comes to your investment property's capital growth. You can make so much money from rent – but to grow substantial wealth, you need capital growth. That means checking data for the location you choose to see how likely the property is to grow in value over the next ten years. Waiting too long Timing the market isn't that important – well-located properties in capital cities tend to double in value every ten years. Waiting for the "right time" only causes you to lose out on good opportunities. Buying what you like or want Remember that when you're buying an investment property, it needs to appeal to owner-occupiers, because they're the ones who are going to push up the value. You also need to consider what tenants want. But properties that are built to appeal to investors often aren't the properties that go up in value, because those properties don't have the same appeal to owner-occupiers and tenants. Underestimating your running costs You need to plan for regular costs, like taxes, as well as unexpected costs, like damage to the property. Landlord insurance can cover some costs, like tenants leaving or failing to pay the rent, and insurance on the building can cover things like storm damage. But you'll still need to have money set aside for things that aren't covered by any insurance. Managing your own property Property managers keep up with changing legislations that may affect you as an owner, make sure that insurances are current, and generally provide you with an extra layer of protection while ensuring that things run smoothly. Links and Resources: Michael Yardney Metropole Property Strategists The original episode of this show appeared on The Pocket Money Podcast - finder.com.au Join Michael Yardney and a group of Australia's leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane, and Melbourne Use the coupon code PODCAST and come as our guest Show notes plus more here: The top property investment mistakes to avoid. Some of our favourite quotes from the show: "There's two groups of people: some who get in too early, some who get in too late." – Michael Yardney "Of the 20 million property investors in Australia, the majority, around 90% never get past their second investment property, which means they never get the financial freedom they're looking for." – Michael Yardney "Smart investors buy themselves time to ride the ups and downs of the cycle." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Are you looking at buying your first home now or in the future? Then this episode is for you. I'll be talking with Marc and Sally from Finder.com.au about things first-time homebuyers need to do to make the most of their purchase and the mistakes they should avoid. Even if you're not a first-time buyer, the property information we discuss is valuable for those who have been through the process before as well. Mistakes First Home Buyers Make Buying emotionally – Your first home is not likely to be your last home, so it's better not to get too emotionally invested in the process. Instead, think of it as an investment, and a stepping-stone to your next property. Not factoring in all of the real costs – Everyone looks at the price of the property first, but it's important not to let all of the other costs, like stamp duty, conveyancing, moving costs, rates and taxes and insurance and maintenance, body corporate fees, and mortgage fees get left out of the equation. Overextending financially – A mortgage broker can help you navigate loans and work out a budget, so you don't end up taking on more than you can really afford. Not doing your proper due diligence – Don't forget the seemingly little things like building and pest inspections. These can help you avoid potentially big problems down the road. Not understanding the contract you're signing – Once you've signed a contract, you're obligated to fulfill the terms, so it's important to understand what you're getting into. Your legal representative can help make sure that you're fully informed before signing on the dotted line. Not getting finance pre-approval – When you get your finances organized ahead of time and get a loan pre-approval, you'll know exactly how much you have to spend and be at less risk of overextending yourself. Trying to do it on your own – Buyer's agents, mortgage brokers, and solicitors are all examples of professionals whose expertise can help make sure that your buying process goes smoothly and you get what you want and understand what you're getting. Don't try to go it alone. Links and Resources: Michael Yardney Metropole Property Strategists The original episode of this show appeared on The Pocket Money Podcast - finder.com.au Join Michael Yardney and a group of Australia's leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane, and Melbourne Use the coupon code PODCAST and come as our guest. Show notes plus more here: 7 common mistakes first home buyers make Some of our favourite quotes from the show: "And the other thing is, if you buy emotionally and overpay, it's going to cost you a lot more than you need, and that's going to be an extra cost in stamp duty and interest for a long, long period of time." –Michael Yardney "When you rent, you don't think about paying things like rates and taxes and insurance and maintenance, body corporate fees, those sort of things." – Michael Yardney "Today, in this current lending environment, it's much, much harder to get a loan, there's a lot more hoops you've got to go through, it takes longer than it used to." – 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

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

Have you ever wondered why there is so much bad news out there? Maybe it's because people find bad news more interesting than good news. That applies to property, the economy, politics, and everything else. A recent study that I read concluded that on average, people pay more attention to negative news than positive news. I've found that blogs and podcasts with subject lines that are more negative get more attention. The problem is that people do have a bias toward negative news, and if you have that tendency, it's going to affect the way you think, the way you feel, and the actions you take. Remember, your thoughts lead to your feelings, your feelings lead to your actions, and your actions lead to your results. Pete Wargent and I discussed why those bloggers who are continuously negative about property and our economy get so many more followers than the positive people, and that's what we'll talk about in today's podcast. We'll talk about how you can overcome this negative bias, what is causing it, and how we can move forward in the new year and take advantage of all of the positive things that are happening. How negative news affects us as businesspeople, investors, and entrepreneurs Turn on the news these days, and you'd be forgiven for thinking that the world is about to come to an end. Negative and bad news seems to surround us everywhere we go. The problem isn't just that bad things re happening around the world, but it's partly that our brains are wired to pay more attention to unpleasant news. This is called negativity bias. How does this affect us as investors, businesspeople, and entrepreneurs? There's a strong body of evidence that demonstrates the human tendency to prioritize negative things. We're hardwired to respond to negative words and negative events. Negative headlines affect the way you think, the way you invest, and whether or not you're willing to take risks. There are different dynamics when it comes to finance and the economy, as opposed to subjects like war or crime. Schadenfreude is a huge driver of interest in financial and economic topics. That's because people understand that there are two ways to get ahead of your peer group: either you succeed, or they fail. Some people take a curious comfort in negativity or the economy struggling and falling on hard times. That's because most of us believe that we're better than average, and negative economic news can appear to confirm this. In reality, success tends to get skewed toward people who take action. Another factor is the tendency to use social media as a news source. This can obscure your perception of reality. After all, what you're seeing are other people's highlight reels. You don't see the things that wind up on the cutting room floor. If you want to be successful, it's more effective to follow people who've achieved what you want to achieve and emulate them than to fixate on negative news. People are driven by the need to be right or contrarian, but you miss out on a lot if you're consistently negative. It's also important to remember that news is about things that happen, not things that don't happen. In other words, no one reports on wars that don't break out, or economic crashes that never occur. Herd mentality kept us safe in the old times, but it's not the best investment strategy. If you do only what the average person does, you're likely to get only average results. There are plenty of good things happening out there, but you might have to consciously look for them. If you look for the good things, you'll find them. Links and Resources: Michael Yardney Metropole Property Strategists Pete Wargent Next Level Wealth Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Join Michael Yardney and a group of Australia's leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane and Melbourne Use the coupon code: PODCAST and come as our guest Some of our favourite quotes from the show: "It's the developers that are going to build all of those big apartment buildings that will allow more of them to buy homes in the first place." – Michael Yardney "Those who take action, can become wealthy." – Michael Yardney "Despite us thinking we're rational, we're not. We think irrationally." – Michael Yardney Show notes plus more here: Why do we pay more attention to negative news than to positive news? PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What's ahead for property this year? Is this the end of interest rate cuts? We started this year with optimism, but now we have our fair share of turbulence. We have the coronavirus epidemic, the bush fires, political tensions overseas. How will these affect our property markets and our economy? Those are some of the things we're going to talk about today with Dr. Andrew Wilson. We're also going to discuss auction trends, the home loan trends, what's happening to interest rates, and what's happening to inflation, as well as employment, consumer confidence, and our housing markets. There's a lot of information in this episode that will make you a more informed property investor. We're just over 10% into the year 2020, and we've already had our share of X factors that have upset the forecasts. Auction trends Let's start with property trends. A number of data sets are suggesting property values have continued rising around Australia. The property upturn which started in Sydney and Melbourne in the middle of last year has become more widespread with housing values rising in January across every capital city. There's plenty of competition among buyers. There are not only higher clearance rates, but there are also higher numbers of properties being offered for sale. Median prices are growing strongly, but they're a bit of a lagging indicator. Auction clearance rates are a more in-time indicator of market sentiment and depth. Home loans surge A lot of fuss has been made of the December home loan figures which confirm the revival of our housing markets. However, they still remain well below the figures of 12 months ago, particularly for property investors. On the other hand, ending for first home buyers went against the trend, increasing by 4.6% over 2019 compared to the previous year. Is this the end of rate cuts, or are the RBA just holding off? The Reserve Bank of Australia decided in the first week of February to keep interest rates on hold. The board noted that previous outbreaks of new viruses had "significant but short-lived negative effects" on economic growth in the economies at the centre of the outbreak. Headline Inflation rising - but still subdued Headline inflation was up to 0.7% for the quarter, and the annual rate of inflation sits at 1.6%, which is significantly below the 2-3% target range the RBA is aiming at. More economic headwinds – tragic bushfires and coronavirus. The Australian economy posted its worst performance since the global financial crisis in 2019. The big macro stories affecting our economy have come so far this year have been: The USA China Trade Pact Brexit The Corona Virus The Australian bush fires. The coronavirus is creating a second wave of economic disruption in Australia. The RBA minutes stated that the coronavirus will have a bigger impact on the Australian economy than SARS. Good news for employment Unemployment fell at the end of last year to 5.1%. But there is still spare capacity in our labor markets with many people who are in part-time jobs being underemployed. A slump in job advertising over the past year and slow economic growth suggest the unemployment rate could go even higher. Consumer confidence Three interest rate cuts and reductions to personal income taxes have failed to lift the mood of consumers, who appear more content in paying down debt and saving rather than spending the increase to household incomes. Business confidence is also weak as business conditions struggle below average, raising the risk of slowing employment growth and continuous sluggish business investment. Our Housing Market Our forecasts for 2020 are that property values will be higher at the end of the year than today with well-located Sydney and Melbourne properties worth 10% more than they are today. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Join us at my annual Property Market and Economic Update – come as my guest using the Coupon Code: PODCAST Click here for details Show notes plus more here: What's ahead for property this year? How will the corona virus affect our economy? Some of our favourite quotes from the show: "Auction clearance rates are a more in time indicator of the market." – Michael Yardney "In the context of what's happening in the world, those aren't bad economic figures if we could achieve them." – Michael Yardney "I guess the elephant in the room is the coronavirus. It's still a developing story and even the RBA stated in its minutes that it will have a bigger impact on the Australian economy than SARS." – 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 h