Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

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

If you're looking for more money, better success in property investment or other areas of your life, or more wealth, this episode is for you. I have three messages for you today. We're going to discuss one thing you're going to have to change to become a more successful investor – and it's not what you think. I'm also going to share what is the right type of property investment for this stage of the cycle. Then, in my mindset moment, I'm going to explain an important trait of successful people. And if you can pick up on it, there's no reason why you can't be successful as well. The One Thing You Need to Change for Investment Success One of the first steps in change is changing your thoughts. How do you think about money, success, and prosperity? For many of us, our thoughts revolve around fear, scarcity, and limitation. If you think about fear, scarcity, and limitation – what do you achieve? Remember: Your thoughts lead to your feelings – your feelings lead to your actions and your actions determine your results. So, money is a result. Wealth is a result. These occur in your outer world but are determined by your thoughts and feelings – your "inner world." It's not what you don't know that prevents you from succeeding; it's what you think you know that isn't correct that is your greatest obstacle. The problem is for many Australians their thermostat is not set for wealth. Firstly, we need to change the way we think about ourselves. We need to see ourselves as a wealthy person, as a wealth attractor and a wealth creator. This means we may need to change some ingrained thinking patterns. Or overcome some negative ways of thinking that have developed as a result of past experiences. Most successful people all share one critical characteristic – the trait of adaptability. They embrace change. They look for opportunities to expand and learn. Another common characteristic of successful people is that they have a mentor and they belong to a mastermind group. They hang around other like-minded successful people. Results change when people change their way of thinking. And doing things differently first requires thinking differently. If you change your thinking, you will change your actions and if you change your actions – results. What's the right investment for this property cycle? We're well into a new property cycle. And with the property market on the move, it's becoming apparent that more and more investors are looking for the next hotspot. The problem is that hot-spotting is about short term speculation, not long-term wealth creation. Most property investors are looking to build an asset base so that one day they can replace their personal exertion income with their property income. But the key to building a substantial property profile is to use the first property to leverage into your next property, then using those two properties to leverage into more investments, and so on and so on. And you can only do that by investing in the type of locations that consistently provide long-term capital growth. But by definition, hotspots are not that. They cool off as quickly as they heat up. If you're into investing in short-term trends, being right isn't what's important; it's being right at the right time that counts. Very few can do that, so the history of investors trying to find the next boomtown is littered with people who get the story right and the outcome wrong. Instead, I buy in areas that have a proven long-term history of outperforming the average capital growth and that are likely to continue to outperform, because of the demographics of the people living in the area. Hot spotting is virtually the opposite of this sensible, not-so-sexy, tried and tested system for successfully building a property portfolio. There are some principles that can be applied whenever you consider investing in real estate, to ensure that you are as comfortable as possible and exposing yourself to the least amount of risk. These include: There is no one property market. Instead, there are many submarkets around Australia. Each state can be at a different stage of its own property cycle and within each state, the markets in different areas are segmented by geography, price points, and type of property. Rather than trying to time the market, buy the best assets you can. Owning an investment-grade asset that grows at wealth-producing rates of return will see your portfolio outperform over the long term. Strategic property investors manufacture capital growth through property renovations or development. Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behavior of other investors. While the long-term performance of property is influenced by the fundamentals, its short-term performance is much more affected by market sentiment. Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions. Don't make 30-year inve

If you're in business, and even if you're not, today's show about the common mistakes businesspeople and entrepreneurs make will be useful for you. If you think about it, we're all in our own little businesses: the business of property investment or the business of improving ourselves. Hopefully, this discussion will help you avoid making some of these common mistakes. Top 7 mistakes Entrepreneurs make Expecting success right away – it's harder than most people think Underestimating the amount of time it will take and the cash that will be needed Providing a product or service that is their passion, without making sure there is a viable market for it. Confusing a good idea with a good opportunity Is there a big enough market? Is there a sufficient margin? Opportunity exists at the intersection of a deep customer need or problem and your ability to meet that need Not understanding the importance marketing If you build it, they will come is the wrong idea. You need to invest heavily in marketing – but you also need to understand it even if you outsource it USP– they must differentiate themselves Social media Building a list People problems Having the wrong business partner Hiring the wrong people Not firing the wrong people fast enough Not understanding how to manage teams Letting perfection get in the way of progress: They wait for the "right " time. There rarely is such a time They wait until everything is perfect or 100% in place. This can lead to analysis paralysis. Gen Colin Powell applies a 40/70 rule They let go too soon or don't want to get their hands dirty. You have to work in your genius and focus on the highest and best use of time BUT You have to know how things get done in your business, Sometimes you have to be able to dive in and make things happen….there is a difference between delegation and abdication. Trying to do it alone – need a coach, mentor, mastermind group 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: Here's How to Avoid the Top 7 mistakes Entrepreneurs Make | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "Unfortunately, life is hard. Business is difficult. Retaining clients is difficult. Making a profit isn't easy. Because if it was, the rewards on the other side wouldn't be as valuable." – Mark Creedon "What I'm suggesting is the list needs to be yours – not on Facebook, not on Twitter, not on LinkedIn, because over time they change the algorithms and you may lose access to those people." – Michael Yardney "One of the other aspects of managing staff as your business grows is that you may well be a good practitioner at your skill, whether it's in sales or the craft or the profession that you're in, but that doesn't actually translate to being good at human resources and managing people." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

For the last few decades, Baby Boomers have been driving our economy and our property markets. But interestingly, they're not doing what everyone thought they were going to do. They're redefining retirement. And this is going to have significant implications for our property markets and on our economy and businesses. So, if you're interested in property investment or if you're a business owner, this is going to be an enlightening show. I'm speaking with Simon Kuestenmacher, a leading demographer, about how baby boomers are redefining retirement, and what that means to you and to the property market. Demographics have always been a major driving factor of our economy and our property markets. And Baby Boomers have dictated many trends because there are so many more Baby Boomers than previous generations. The last Baby Boomer will hit retirement age by 2029. But that doesn't mean that they'll all be retired. There's been a big shift in terms of how people are defining retirement. More and more people are staying in the workplace longer. Some are doing so because they find the work engaging and enjoy it. We also see more and more people who are being forced to work longer. These are usually people in low-income jobs, which makes clear the crucial importance of lifelong retirement planning. There are a number of different ways to plan financially for retirement. Superannuation is one way. Owning your home is another. Investing in residential real estate or shares is one more way to plan for retirement. There are four major tribes of Baby Boomers moving into retirement: The Lifestylists – People between 55-64 years of age who prep for retirement. They tend to slide into retirement, rather than jumping into it all at once. The Active Retirees – People between the ages of 65-74 who are still somewhat linked to work. They want to stay active and in the family home as long as possible. They only move when they are forced to. The Downsizers: They are 75-84 years of age. At this stage, they are slowly starting to prepare for old age. Physical problems force this group to slowly start to change their housing behavior. Old Age: They are 85 or older. Statistically speaking, they are quite likely to have lots of physical ailments. However, they still want to live as independently and as healthily as possible. The workforce as a whole is shifting more and more toward knowledge work. At the same time more and more repetitive knowledge tasks are being taken over by computers. That leaves humans with the tasks of socializing and networking. There are also lots more jobs in the low skilled and unskilled sectors. But no new middle-skill jobs. The workforce is being hollowed out. Links and Resources: Michael Yardney Metropole Property Strategists Simon Kuestenmacher - Director of Research at The Demographics Group 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: Here's how Baby Boomers are Redefining Retirement Some of our favourite quotes from the show: "Middle ring suburbs are where we need more medium-density development, but it's really hard to find the land or to make the economics work." – Michael Yardney "As always, baby boomers are going to be an important factor in our economy and in our property markets moving forward." – Michael Yardney "I really do think everyone's doing the best they can." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

It's the million-dollar question so many investors ask: what's a better investment, the stock market shares or property? Outside superannuation, property and shares are the two most common ways Australians build wealth. Some find deciding which to invest in is a bit of a hard decision. If someone tells you only shares or only property, run away fast. That probably means they have a vested interest. You'll find that in different stages of your life, or different times when you need asset growth and cash flow, different types of investments will be more suitable for you. In today's show with our regular guest Pete Wargent, we'll tell you the pros and cons of both asset classes. We're also going to explain when they're right for you, and when you shouldn't be investing in a particular asset class. Property or Shares? Property and shares are different but complementary asset classes. While their long-term performances may be similar, they are very, very different as asset classes. The tax system in Australia tends to favour people investing in property. Property You can leverage against property. The extra leverage you can achieve with property magnifies your returns if you've got a long enough time horizon Property is an imperfect market: in property you can have an edge related to your knowledge, your information, and your contacts. The property market isn't controlled by investors. This gives the market more stability – housing is a fundamental human requirement. As long as you buy in the right location, the value isn't going to disappear as it can in stocks. The government wants us to be property investors. It actually doesn't want to provide public housing to that 30% of Australians who rent properties. In property, you make fewer but bigger decisions, so it's extra important to make sure those decisions are the right ones. Share market The share market is much more liquid so it's easy to get your money back on short notice. The share market is also better for generating income (cash flow.) Because you can buy smaller clumps of shares, the entry cost is lower. Property is lumpier. The diversification of the stock market is an advantage. You can also diversify over time. You can leverage against shares, but not as much as you can with property. 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. Show notes plus more here: Property vs Shares, which is a better investment? With Pete Wargent Some of our favourite quotes from the show: "Because property is lumpy, you can't get it wrong. You've got to get good advice." – Michael Yardney "The government wants us to be property investors. It actually doesn't want to provide public housing to that 30% of Australians who rent properties." – Michael Yardney "You are not your fears. You create your fears." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

As we enter a new year and the beginning of a new property cycle, there are still many mixed messages in the media leaving many investors and potential homebuyers confused. Hopefully, by the end of today's show, you'll be a little less confused because I'm going to ask Dr. Andrew Wilson, Australia's leading housing economist, some of the questions you're probably thinking about. But before that, we're going to discuss some lessons that we've learned in 2019 that will make you a better property investor in 2020. I also have a mindset moment to share about things I would have liked to know earlier. 4 Property lessons As we enter a new year and in fact a new property cycle it's interesting to look back at 2019 and see what lessons we can take out of 2019 to make 2020 a better year in property. Let's take a look at 4 property takeaways from 2019: Be careful whose forecasts you listen to. What happened to all those predictions of 40% house price falls for the Australian property markets? Lower interest rates, a miracle election result and looser lending criteria saw the property markets in our 2 biggest capital cities surge in the second half of 2019 Property investing is a game of finance - with some houses thrown in the middle. This became clear as APRA tightened the lending screws on property investors from 2014 through till 2018 causing the biggest decline in our property markets in modern history. Then when the banks' lending criteria became more relaxed and interest rates fell in 2019 our housing markets rebounded strongly. There is not one "Australian property market". While the fundamentals of strong population growth and the wealth of our nation will underpin the Australian property markets, there is not one "Australian property market." Each state is at its own stage of its individual property cycle and within each state there are many markets segmented by geographic location, dwelling type and price point. Expect the Unexpected. Every year an unexpected X factor comes out of the blue to undo the best laid plans – some on the upside (like the miracle election result in mid-2019) and sometimes on the downside. Sometimes these are local issues and at other times they come from overseas. However, over the long term our housing markets are driven by the fundamentals so don't make 30-year property investment or home buying decisions based on the last 30 minutes of news. Bonus Lesson: The property market is not a get rich quick scheme, however those who own well located properties will benefit from the long-term growth of their properties. As Warren Buffet wisely said: "Wealth is the transfer of money from the impatient to the patient." An expert answers your property questions While our property markets are entering a new property cycle, currently there are lots of mixed messages in the media – some positive and many negative. This has led to many listeners to our podcasts leaving questions and asking for clarification. So, in my chat with Dr. Andrew Wilson today I'm going to ask him to answer these questions which, if you're interested in property, are likely to be on your mind also. Is Australia going to fall into recession in 2020? During 2019 the RBA realised that the Australian economy wasn't as rosy as it had hoped. The labour market deteriorated, unemployment rose, incomes growth languished, inflation failed to increase, and our GDP slowed down despite 3 interest rate cuts. It was really only mining sector and government spending that kept our economies head above water. But as the year finished off, the latest labour market data at the end of the year showed a slight fall in unemployment and jobs growth albeit mainly part time jobs. But there are now signed of an improving global economy, particularly driven by the strong US economy. All this makes an Australian recession in 2020 very unlikely. What is likely to happen to interest rates in 2020? While rates are likely to be cut again twice again in 2020, it is now more likely that the RBA will hold off cutting interest rates in February as many commentators are predicting. Their decision will depend on the end of year economic data that will be published in February and March. Will the strength in the Australian property markets continue in 2020? The auction markets finished 2019 strongly indicating plenty of home buyer and seller confidence. Other factors that will underpin strong property markets especially in Sydney and Melbourne include: The First Home Buyer Scheme that came into effect on January 1st The prospects of further interest rate cuts during the year Fear of Missing Out – as the markets rise strongly The missing link at present is investor activity. Investors are keen to get into the market, but many are having trouble getting finance due to restrictive bank lending practices. What will be the major influencers of our property markets in 2020? Just as lack of confidence held back our property markets at the beginning of 2019, strong ma

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

Our property markets have been on the move for a while now. But some people are saying no, it's all going to end, there's still a property crash coming. Others are saying that Australia's property markets are different. But are they really different? That's what we're going to discuss today with Dr. Andrew Wilson. But first, we're going to bust another 5 property market myths so that you don't get fooled. I also have a great mindset moment today. At the end of this episode, you're going to be a more informed property investor. Property Myths Busted Myth: Buying near capital cities is a certain money-spinner Fact: Capital cities are a good choice for investment-grade properties, but that doesn't necessarily mean that properties there are automatically successful. There will always be some suburbs that perform better than others. Some have socio-economic problems, some have better transport than others, and so on. It's a question of finding the right investment-grade locations and then the right properties in those locations. Myth: Property prices double every 7-10 years Fact: On average, that might be true. The problem is that average means that half all properties double in value every 7-10 years and the other half don't. Markets move in cycles, and there are multiple property markets – depending on location, price points, and property types. There's no guarantee that any property will double in value in 7-10 years. You have to do your due diligence. Myth: You can't lose with property Fact: Yes, you can. Not every property is an investment-grade property. Succeeding in property has to do with choosing the right property, in the right location, at the right time, and for the right price. Myth: Houses are a better investment because of their land component Fact: Land is the component that increases in value, so it can be a good choice to own a property with a high land to asset ratio. But land is not the only consideration, and not all land is the same. Desirability, demand, and location are also fundamental components of a successful property. Myth: It's too late for me to invest Fact: Sure, it's tougher to reap the rewards of property growth if you're older, but it's never too late. Even late in life, there's still the opportunity to grow your retirement funds and leave a legacy for your own children and grandchildren. The 7 Ways Australia's Property Markets Are Different with Dr. Andrew Wilson Population growth underpins our property markets Population growth is concentrated in our three big capital cities, creating a strong demand for housing. We have a sound banking system Australia's banking system is well regulated and risk averse. Australia has a long-term undersupply of the right type of property The supply of new dwellings has not kept up with demand, thanks mostly to an increase in immigration. Debt is not a real worry Much of Australia's debt is in the hands of borrowers who have the ability to service their loans. And much of the debt is good debt. Australian has a culture of homeownership This is different from overseas where many people expect to be tenants for life. Rental accommodation is in the hands of private investors In Australia, the majority of rental accommodation is owned by private investors. The government wants us to own property Because of Australia's culture of homeownership, the government encourages first home buyers with certain incentives and property investors with tax breaks. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Ahmad Imam- Director of Metropole Properties Sydney Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au See the show notes plus more at the show web page 5 Property myths that aren't true |7 Ways Australia's property markets are different with Dr. Andrew Wilson Some of our favourite quotes from the show: "Not all land is created equal." – Michael Yardney "Your life is a reflection of what you are willing to tolerate." – Michael Yardney "If you want money in your life, you've got to give more value." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to become successful at anything, whether it's property investment, business or entrepreneurship, a great strategy is to find yourself a mentor – someone who's achieved what you're wanting to achieve and study them, learn from them and emulate them. You can learn from their successes as well as their failures. In fact it's much cheaper to learn from your mentor's mistakes So please allow me to be one of your mentors. You see…I frequently get interviewed on the radio, television and on podcasts. And today I'd like to replay an interview that brought out a lot of great information about my youth, my successes and also the things I've done wrong. As I said…if you can learn from other people's mistakes, why not do that instead of making these yourself? Mike Mortlock from MCG Quantity Surveyors interviewed me for his podcast. This show is about double the length of our normal show, but there's a lot of good information there that both new and returning listeners will benefit from. Some of the topics we discuss during the interview How I got interested in property My first property What led me to start the Metropole Group of Companies How finding mentors and learning from mistakes helped me create the business that I have today Some of the mistakes I've made Patterns I've learned in the property cycles Strategies that I have used in my real estate investment journey Which locations are going to outperform in the long run Why investors should think like home buyers What opportunities exist for potential investors with limited budgets How long it really takes to become financially independent Some strategies for new investors Difficulties with getting financing when you have several properties A mistake that I sees property investors frequently make How investors can use renovations to add value Why behavioural finance and investment psychology are important subjects to understand How biases affect financial decision making The services that Metropole offers Links and Resources: Michael Yardney Metropole Property Strategists Michael Yardney's Mentorship Program Mike Mortlock MCG Quantity Surveyors Show notes plus more here: How I built my property empire – Summer Series Some of our favourite quotes from the show: "I'm actually a real success at failure. I guess there's been tenacity to keep going." –Michael Yardney "The good and the bad times are keep coming, so be prepared for them. Maximise your upside and be prepared to cover your downside." "One of the big lessons of successful investors, business people, is to delay gratification. Wealth is the transfer of money from the impatient to the patient." –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.

Fears of the property bubble are back. It's a new year, and the naysayers and the property pessimists are out telling us we've got a property bubble. That's what we're going to unpack today as I chat with Pete Wargent. First-time homebuyers are back, established homeowners are back and investors are back in the property market because they fear missing out, particularly in our two big capital cities. Add to that a number of interest rate cuts, easier lending, and a friendly media that has been encouraging people to get back into the property market. But are we in a property bubble? Topics Covered in my Talk with Pete Wargent: The definition of a property bubble The efficient market hypothesis The cause of rising house prices The indicators of a bubble It's easy to predict a bubble because it's difficult to prove that the prediction is wrong Predicting bubbles can make people feel smart or sophisticated How the property cycles repeat What would happen if there is a price drop Where things are going to be in ten years' time 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. Show notes plus more here: Don't worry about an Australian property bubble – take our advice. With Pete Wargent Some of our favourite quotes from the show: "It's homebuyers who make the property market." – Michael Yardney "The property market cycle is what we've been seeing, as opposed to the hyperinflation of property prices which you'd see in a bubble." – Michael Yardney "I believe that the market tends to correct itself, and it has this time around." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

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

The custom of making New Year's resolutions has been around for thousands of years, but it hasn't always looked the way it does today. The ancient Babylonians held their new year's celebrations in mid-March when the crops were planted. They made promises to pay their debts or return items they borrowed. These promises were the forerunners of our new year's resolutions. Today, we're going to take about how to restore some of your New Year's resolutions that may have fallen by the wayside. Where did my New Year's resolution go? I bet you made some New' Year's resolutions. Most of us did because resolve comes easily on December 31st. But give it a few weeks and many of the resolutions you made might already be in disarray, compromised, abandoned. And the resolute determination to make this year the year that you stick to your resolutions has probably forgotten altogether. I'm not writing this to make you feel guilty over this abandonment. Instead, it is about the real reasons resolutions and the determination to achieve them are lost, year after year, and how to change things so that this year you'll get on track to systematically set and achieve new goals. So here are 9 strategies to rescue them You can't achieve new goals or make desired changes without allocating time to do so. One of the big reasons that resolutions never become reality is that no room is made for them in your daily schedule. There are obviously some things you're going to need to keep doing, some new things you'll need to do and a bunch of things you'll have to stop doing to make room for the new more productive activities. Priorities should govern schedule, schedule shouldn't govern priorities. Another mistake made by the vast majority of business owners and entrepreneurs is they operate like workers instead of bosses and leaders. To have a better year this year you'll have to wrest control away from others' priorities and be governed by your own priorities. Resolutions aren't resolutions without resolve. Only you can decide what really matters to you. So don't bother making resolutions to appease or satisfy others. Be honest with yourself – that's a prerequisite for success. Resolutions require resources. Almost anything you decide to do, any change you decide to make, any goal you set out to achieve requires new or different resources. You aren't really serious about a resolution unless you invest in and gather the required resources. Sometimes investment motivates follow-through, too since you've expended time effort and money in it. Daily progress. Take your goals, your objectives and break them down to a timeline and to-do list for each day, from now to fruition. Here is the discipline that is guaranteed certain to move you closer to any goal each and every day: refuse to end any day without doing something, no matter how small, that moves you toward the goal! Who motivates the motivator? As a businessperson, as an entrepreneur, as the leader you may be doing a lot of motivating of others, but who motivates you? Any professional sports coach will tell you: measurement automatically improves performance, and measurement monitored by someone else further improves performance. Build up to change. Say you resolve to get up an hour earlier every morning to work on some project. You could start with 15 minutes for two weeks, then 20 minutes for two weeks, then 30 for a month, then 45 for two weeks. It's not too late to regroup! You may already have let your resolutions slip away. It doesn't matter. Today, tonight, tomorrow morning at the latest, block out a couple of hours, bolt the door, unplug the phone, and re-group. Review the resolutions. Pick one or two that mean that most, and apply the seven ideas I've just shared with you. Don't try and do it all on your own. Resolve weakens under pressure, under stress, when you feel your time is out of your control. As I mentioned above it's really hard to be successful on your own. You need a coach, an unreasonable friend, a mentor to hold you accountable. And as a business coach to some of Australia's leading entrepreneurs and business people, that's why I specialise in. Do you need guidance, motivation, and accountability to push your business through to the next level? Are you frustrated that your business isn't growing as fast as it could be? Would you like your business to be less dependent on you? Would you like step-by-step proven strategies to generate more business and sales in the next 90 days? Would you like access to behind the scenes templates and tools used only by the top 1% of successful businesspeople? Then click here now and find out all about Business Accelerator Mastermind. This community is for you if you're a businessperson, entrepreneur or professional who wants to 10x your income, elevate your ability to give, and leave a massive impact on your community and the world by up-leveling your tribe and improving your business acumen. Why not make another New Year's resolutio

It's already turning out to be an interesting year for property in 2020. Some commentators are suggesting double-digit capital growth in some of our capital cities, others are suggesting more subdued growth. The question is, who are you going to listen to? Whose advice are you going to take? Because if history repeats itself, and it surely will, many property investors are going to get it wrong this year and in this new decade. In today's show, I chat with property researcher John Lindeman to give you some warnings about a new breed of property spruikers who are out there to get you and take advantage of you. By the end of the show, you'll have a better understanding of whose advice to take and what traps to watch out for. Don't get hoodwinked by property spruikers Whenever the market starts to move, the spruikers come out to promote their wares. And they may twist facts and research to do so. Research can be twisted to give any result you want. There are a number of statistics that can be used to paint a misleading picture. For example, a spruiker might preset statistics showing that values in a particular neighbourhood have grown over the past 12 months. However, if you looked at the statistics for the past five years, you would realize that while values in that neighbourhood may currently be on the rise, they're still below the level they were at five years ago. In other words, the deal is not as good as the last 12 months of statistics alone make it appear to be. You also need to be wary of high-pressure sales tactics. Look out for free events that come with lots of perks. It may sound good at the time, but these events are often an excuse to give you a hard sell. Who should you be asking for property advice? Probably not family and friends, unless they happen to be property experts as well. Realtors are there to represent the seller, not you. And you certainly don't want to be taken in by spruikers. But you need reliable advice from somewhere. Independent investment advice, such as the kind offered by the Property Strategists at Metropole, is your best bet. These advisors aren't selling property, so they're not invested in urging you to buy property that might not pay off for you in the long run. Instead, they're invested in giving you the unbiased property advice that you need to succeed. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Join Michael and a group of property experts at their annual Property and Economic Market Updates in Sydney, Melbourne, and Brisbane John Lindeman, Lindeman Reports Show notes plus more: Don't get hoodwinked by property spruikers with John Lindeman Some of our favourite quotes from the show: "Others ask family and friends, and unless they're property experts, have a fun chat with them but don't take their advice." – Michael Yardney "Be careful about people who talk a little about investing but who have never done it themselves." –Michael Yardney "Without action, dreams are really just a belief." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to become more successful in life, business, and investing, you're going to get a lot out of today's show. Even if you're not an entrepreneur in the sense that you would normally use that word, if you want to be more successful than the average property investor you will need to be entrepreneurial. In this episode, you'll hear me being interviewed by Brett Warren and I'll be answering questions that have been left on the website by my blog readers and my podcast listeners, as well as a few questions that Brett himself came up with. Highlights from the Interview with Brett Warren Why I got involved in property investment My first investment property What I enjoys about property The four ways to get money out of property How I suggest you choose a location to buy property When the best time is for someone to start investing in property What type of property I'm investing in and why The essential qualities of a successful property investor Why I'm still working and 0what drives me The most important lesson I have learned about property investment When I learned about the importance of mindset motivation How to make a mindset change Why successful people fail more often than unsuccessful people How Metropole can help potential property investors Why a buyer's agent is important, even in this economy Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Brett Warren – director Metropole Property Strategists Brisbane Show notes plus more here: Confessions of a real estate entrepreneur – Summer Series Some of our favourite quotes from the show: "Performance isn't possible in an empty theater. So what a privilege it is that I have a large and ever-growing number of people with sustained and enduring interest in what I have to do, what I say, and what I teach." –Michael Yardney "My first property that I bought for $18,000 I still have now …is worth well over 2 million dollars." – Michael Yardney "In my mind, you've got to invest for capital growth until you've built enough of an asset base. If you want cash flow, don't buy real estate." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

While you're listening to this podcast, my wife and I are away on a cruise. We're able to do that again this year because we've built a substantial property portfolio that gives us the lifestyle we enjoy. I'm not showing off. What I'm suggesting is you should also build a substantial asset base to give you choices in life. How are you going to do that? How are you going to be different from all those investors who don't get past their first or second property? The answer is to learn from those who have already succeeded – who've achieved what you want to achieve. That's what Pete Wargent and I are going to talk about in today's show. Pete will tell us what he learned from successful investors at last year's wealth retreat. I'll also share something special in today's mindset moment. Wealth Retreat Pete Wargent is one of the regular presenters at Wealth Retreat. But he attends to learn as well as present. Today he's going to share some of the tips he learned at last year's Wealth Retreat. There's not one property market There are multiple property markets around Australia all at different stages of their own cycle. In a boom, everything sells. But when a downturn comes, you can see how much better well-appointed properties hold their value. That's why you need a tried and tested formula and an investment strategy that always works, not one that only works right now. If you want to grow your business, you need a business coach You never know which nuggets of advice are going to make all the difference. Even if you're already successful in your own right, you can still use advice from other successful people. It helps to have someone to hold you accountable. The power of networking The most successful people always have the most powerful networks, so anything that you can do to build a network of successful, like-minded, and powerful people can only help. But there's only so much time in your life to make connections, so an event like the Wealth Retreat is a perfect opportunity to meet with the right sort of people. Links and Resources: Michael Yardney Metropole Property Strategists Pete Wargent Join us at Wealth Retreat 2020 in June 2020 – read all about it here now and express your interest Show notes plus more: The 3 big lessons I learned from successful investors at Wealth Retreat with Pete Wargent Some of our favourite quotes from the show: "It's isolating, it's hard on your own and you need a tribe around you. But you need the right people." – Michael Yardney "Why not, while you are an employee, set up your own business on the side." – Michael Yardney "Failure is never permanent. That sinking feeling that you've got, that will never last forever." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

These are times of financial and economic turmoil. With the current uncertainty and many changes on the horizon, it's time to go back to the big picture. In today's episode, I'll be discussing 24 things all investors and entrepreneurs should understand about the way property investing and the economy work. A favourite columnist of mine, Morgan Housel, wrote a great column about 122 things everyone should know about investing and the economy. Today we're going to talk about 24 of those big picture ideas that everyone should understand about investing and the economy. Saying "I'll be greedy when others are fearful" is easier than actually doing it. When most people say they want to be a millionaire, what they really mean is "I want to spend $1 million," which is literally the opposite of being a millionaire. Daniel Kahneman's book Thinking Fast and Slow begins, "The premise of this book is that it is easier to recognise other people's mistakes than your own." This should be every market commentator's motto. As Erik Falkenstein says: "In expert tennis, 80% of the points are won, while in amateur tennis, 80% are lost. The same is true for wrestling, chess, and investing: Beginners should focus on avoiding mistakes, experts on making great moves." There is a difference between, "He predicted the crash of 2008," and "He predicted crashes, one of which happened to occur in 2008." It's important to know the difference when praising investors. Wealth is relative. As comedian Chris Rock said, "If Bill Gates woke up with Oprah's money he'd jump out the window." The Financial Times wrote, "In 2008 the three most admired personalities in sport were probably Tiger Woods, Lance Armstrong and Oscar Pistorius." The same falls from grace happen in investing. Choose your role models carefully. Investor Nick Murray once said, "Timing the market is a fool's game, whereas time in the market is your greatest natural advantage." Remember this the next time you're compelled to cash out. Jason Zweig writes, "The advice that sounds the best in the short run is always the most dangerous in the long run." Billionaire investor Ray Dalio once said, "The more you think you know, the more closed-minded you'll be." Repeat this line to yourself the next time you're certain of something. John Reed once wrote, "When you first start to study a field, it seems like you have to memorise a zillion things. You don't. What you need is to identify the core principles — generally three to twelve of them — that govern the field. The million things you thought you had to memorise are simply various combinations of the core principles." Keep that in mind when getting frustrated over complicated financial formulas. James Grant says, "Successful investing is about having people agree with you … later." Scott Adams writes, "A person with a flexible schedule and average resources will be happier than a rich person who has everything except a flexible schedule. Step one in your search for happiness is to continually work toward having control of your schedule." Investors want to believe in someone. Forecasters want to earn a living. One of those groups is going to be disappointed. I think you know which. As the saying goes, "Save a little bit of money each month, and at the end of the year you'll be surprised at how little you still have." John Maynard Keynes once wrote, "It is safer to be a speculator than an investor in the sense that a speculator is one who runs risks of which he is aware and an investor is one who runs risks of which he is unaware." Our memories of financial history seem to extend about a decade back. "Time heals all wounds," the saying goes. It also erases many important lessons. You are under no obligation to read or watch financial news. If you do, you are under no obligation to take any of it seriously. Most economic news that we think is important doesn't matter in the long run. Derek Thompson of The Atlantic once wrote, "I've written hundreds of articles about the economy in the last two years. But I think I can reduce those thousands of words to one sentence. Things got better, slowly." The "evidence is unequivocal," Daniel Kahneman writes, "there's a great deal more luck than skill in people getting very rich." There is a strong correlation between knowledge and humility. The best investors realise how little they know. Not a single person in the world knows what the market will do in the short run. The more someone is on TV, the less likely his or her predictions are to come true. How long you stay invested for will likely be the single most important factor determining how well you do at investing. Links and Resources: Michael Yardney Metropole Property Strategists National Property and Economic Market Update 1 day Trainings use the coupon code: PODCAST 122 Things Everyone Should Know About Investing and the Economy by Morgan Housel Show notes plus more here: 24 Things everyone should know about investing and the economy – Summe

Have you ever wondered how property professionals do their research? If you're interested in finding properties that will outperform the market, this episode is for you. The most research many property investors do is finding a property that they already like, then looking for information that confirms their biases. However, sophisticated investors take a more strategic approach. Today, Kate Forbes, National Director of Property Strategy at Metropole, gives us a detailed picture of how the professionals at Metropole do their research. Metropole's top down approach This starts with examining the macro factors affecting our property markets and drills down to the micro level. Start by looking at the big picture – the macro-economic environment. Look for the right state in which to invest – one that will outperform the Australian market averages because of its economic growth and population growth. Within that state, look for the suburbs that will outperform with regards to capital growth. It's all about demographics. These suburbs tend to be areas where more owner-occupiers want to live because of lifestyle choices and where the locals can afford to and will be prepared to pay a premium to live because they have higher disposable incomes. Look for the right location within that suburb. Some livable streets will always outperform others and in those streets, some properties will always be more desirable than others. Then within that location look for the right property. And finally, only buy at... The right price, but I'm not suggesting a "cheap" property – there will always be cheap properties around in secondary locations. I mean the right property at a good price. 6 Stranded Strategic Approach Only buy a property: That would appeal to owner occupiers. Not because you plan to sell the property, but because owner occupiers will buy similar properties pushing up local real estate values. This will be particularly important in the future as the percentage of investors in the market is likely to diminish That is below intrinsic value – that's why you should avoid new and off-the-plan properties which come at a premium price. With a high land to asset ratio – that doesn't necessarily mean a large block of land, but one where the land component makes up a significant part of the asset value. That is in an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area as mentioned above. That has a twist – something unique, or special, different or scarce about the property, and finally; Where you can manufacture capital growth through refurbishment, renovations or redevelopment rather than waiting for the market to do the heavy lifting as we're heading into a period of lower capital growth. By following my 6 Stranded Strategic Approach, you minimise your risks and maximise your upside. Each strand represents a way of making money from property and combining all six is a powerful way of putting the odds in your favour. If one strand lets you down, they have two or three others supporting their property's performance. When you look at it this way, buying a property strategically takes a lot of time, effort, research and something most investors never attain – perspective. What I mean by this is you can gain a lot of knowledge over the Internet or by reading books or magazines but what you can't gain is experience. It takes many years to develop the perspective to understand what makes an investment grade property. Links and Resources: Michael Yardney Metropole Michael Yardney's Mentorship Program Kate Forbes Show notes plus more : How to Research the Property Markets Like a Professional Some of our favourite quotes from the show: "We're not looking for properties that are affordable to everybody, we're looking for areas where people have got a high disposable income and can afford to, but more importantly are prepared to, pay a premium." – Michael Yardney "If you buy a property to which you can add value through renovations or refurbishments, that will allow you to add some capital growth." – Michael Yardney "Understanding the neighbourhood is not the same as understanding the market. You may understand where the shops are and where the school zones are, but that's very different to understanding the depth of the market." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it's your way of passing the message forward to others and saying thank you to me. Here's how.

Some goals are very hard to reach. Some are not so hard. That's why climbing is often used as an inspirational metaphor for reaching new goals. It's well into a new year, you've probably set some goals for the year or even for the new decade. Today we're going to talk about climbing to the top of the mountain wanting to reach the top of the mountain, even though it's going to be hard, even though you know the trip will be long. I'll have a chat with Tom Corley. We'll show you how you can prepare yourself for the path you need to take to reach the top of the mountain. Everyone wants to be on top of the mountain but few are willing to make the climb When things don't go as planned, most people quit the struggle and move on to greener (meaning – easier) pastures. And the world is filled with quitters.Even for the vast majority who are content with just coasting along, life is still filled with problems. Most people want to minimize their problems.They don't want to add more problems to their lives. That's why self-made millionaires are so rare According to my Rich Habits research, only 3% who pursue a dream, stick with it until they succeed. At some point, 97% quit.Here's why. The pursuit of a dream, big goal or major initiative means – more problems. More obstacles to overcome.More stress. More emotional heartache, especially when things don't go as planned.And when you're pursuing a dream, big goal or major initiative, nothing ever goes as planned.The pursuit of success is all about facing problems. And realizing success is all about solving those problems you face along the journey.Not surprisingly, most avoid pursuing their dreamsThey look at the mountain they must climb and say to themselves – "too many problems".For the courageous few who throw caution to the wind and take action on their dreams, their life becomes a seemingly never-ending battle to overcome problems. There's just no sugar coating it – the pursuit of success is an uphill climb that requires many years of problem-solving.But, for the 3% who refuse to quit on their dreams, success is inevitable.Those 3% learn an enormous amount during their journey as a result of solving problems.Plus, when you persist, eventually you get lucky. Luck favours the persistent.That unexpected luck, like a ski-lift, carries you effortlessly up the rest of the mountain.The key, therefore, is to persist until luck finds you.When you get to the top of your mountain, the first thing you will notice is that there are not that many people.That's because all of the people are at the bottom of the mountain looking up at you. Everyone wants to be on top of the mountain. It's just that not that many people are willing to climb it. Links and Resources: Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits Show notes plus more here: Everyone wants to be on top of the mountain but few are willing to make the climb | RICH HABITS, POOR HABITS Podcast Some of our favourite quotes from the show: "Most people aren't going to keep their New Year's resolutions." – Michael Yardney "Those who get to the top of the tree recognize that the reward at the end is worth it. If it was easy, there wouldn't be a big reward." –Michael Yardney "I think the other thing that they need to get to the top of the mountain is to have a Sherpa, have a trainer, have a coach, have a guide to get them there. Somebody who's already done it a couple of times." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

You rarely see psychology discussed alongside business and investment, but I believe that psychology is foundational to entrepreneurial success. Your mindset matters when it comes to achievement. In today's episode, I'm going to chat with Pete Wargent and discuss his 6 rules for wealth creation. Some of them may surprise you. 6 Rules for Wealth Creation: Increase Your Self-Esteem – People with low self-esteem may unconsciously sabotage their own success, because they don't believe they deserve it. Work on retraining your brain to think positively. Think Long-Term – True wealth is built slowly over time. Follow this principle and exploit the power of compound growth. Study and Counsel with Wise People – If you want to be successful, learn from successful people. Mentors can help you realize your full potential. Pay Yourself First – Make yourself your first priority. Save and then invest a decent sum first, then pay your other bills. Control Your Expenditures – You need to know where your money is going. Study your expenditures and see how you can close gaps where you're spending money unnecessarily. Take Action – You can't be successful if you never make a move. Take massive and consistent action and refuse to give up. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Pete Wargent Show notes plus more here: Pete Wargent's 6 Rules for Wealth Creation Some of our favourite quotes from the show: "You can change the way you think about yourself, you can change your habits, you can upgrade your financial thermostat, and that's through personal development." – Michael Yardney "Most of what you do all day is unconscious, is at the subconscious level. You don't even realize it." – Michael Yardney "I think the message is spend less than you earn, and then save that difference, and overtime invest that money." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Who do you ask for property advice? With so many mixed messages and vested interests, who can you really trust? Our annual Property Investor Consumer Sentiment Survey revealed the many and varied sources that property investors consult for advice. But since most property investors fail to achieve the financial freedom they deserve, and with less than 8% ever owning more than 2 properties, a better question to ask would be…who should you be asking for advice? Today's podcast is designed to help you cut through the clutter: Let's start with who could you ask for property investment advice? Here are the people you could turn to: No One Friends or family A real estate agent A mortgage broker An accountant Financial planners A property marketer Investment seminars and workshops A property mentor A buyer's agent When you look at this list you can now see why you need… an independent, unbiased property adviser or strategist. In my mind, it is critical to have a trusted advisor when making property investment decisions. It's just too hard to do it on your own or by trial and error. There's a huge learning fee involved — of time, money, effort and heartache. Here's a list of some of the things a good property advisor can (should) do: A good advisor will first start by getting to know their clients' hopes and fears and then be future-focused to help them achieve their long-term financial goals. With so many mixed messages about property investing out there (many coming from parties with vested interests), a good property advisor will help remove his client's anxiety by simplifying the complex. While most buyers' agents or property sales people are transactional and think of the current "sale" or purchase, a professional property advisor will aim to develop a long-term relationship and help their clients understand the next two or three steps even before taking the first step. Many clients come to a real estate advisor looking for the next big thing — some are looking for a shortcut, or the next hotspot, or a way to get rich quickly.Instead, a qualified property strategist will stop their clients speculating by recommending proven strategies that have always worked. A good independent advisor will not have any properties for sale but will have a list of potential options and refer their clients to a buyer's agent who is part of their team to find the best opportunity in the market to suit their client's budget, plans and risk profile. A strategic advisor will never put any pressure on their client to make an investment decision, but their knowledge, research and experience will help their clients select an investment property that is the highest and best use of their funds, and one that will work hard for them over the long term. A wise property strategist will help their clients avoid the big mistakes made by the average investor and will earn their fees simply by helping their clients avoid the devastating errors made by many investors such as those who lost significant amounts of money by investing in mining towns, regional locations, house and land packages or off-the-plan properties. By being a student of history, a good strategist will be able to provide perspective, insights and often optimism at a time when the media is being pessimistic, and vice versa. They will also advise their clients to invest their money the way they do themselves — they must be experienced investors — not enthusiastic amateurs. A good strategist will regularly meet with their clients to objectively assess the performance of their property portfolio and ensure they are heading in the right financial direction. As you can see — it takes years of learning, experience and the perspective that only comes from investing through a number of property cycles to become a great property strategist. Let's look at some things a property advisor can't do: Even a good advisor cannot predict the future. They won't be able to tell you how the market will perform, what will happen to interest rates or what capital growth rate a particular property will achieve. They won't be able to find the next hot spot for you, yet many so-called advisors suggest they can. In essence they give their clients what they are requesting, rather than what they need — sound, solid advice. Even the most qualified advisor won't be able to pick the best time to purchase an investment property other than to remind you that the best time to invest was 20 years ago, and the second best time is today. A good advisor won't be able to help you get rich quickly or achieve extraordinarily high returns without taking on extra risks. What is the difference between a property strategist and a buyer's agent? Buyers agents are order takers — they will fill an order given to them to find you a property and will be biased towards the areas they have expertise in, but this may not be in your best interests. Only a property strategist has the expertise to design that "order" to suit your speci

Well, it's the beginning of the New Year, in fact, the beginning of a new decade. It wasn't that long ago I remember the turn-of-the-century when we were all worried about the Y2K bug. All those predictions of mayhem that didn't occur. In fact, we are now 20% through the 21st century – that's a scary thought isn't it. So, what's ahead for the new decade? I'm sure there will be lots of scary predictions, and my first prediction is that most predictions will be wrong. But to get an idea of what might remain the same over the next decade and what might be different let's have a chat with Australia's leading housing economist Dr. Andrew Wilson and chief economist of myhousingmarket.com.au What will stay the same: Australia's population will keep growing and adding around 400,000 people per annum Net migration will account for over half this increase The population growth will remain concentrated in Melbourne, Sydney, and Brisbane We'll have the requirement for 170 -190,000 new dwellings each year Property prices will continue to increase because Australians including the hundreds of thousands of new migrants will continue to aspire to homeownership. Property investment will remain the way many Australia's secure their financial futures and more Australian's will turn to property investment as the returns for other asset classes dwindle. The property pessimists will still be out there telling us our property markets are going to crash Property spruikers and get rich quick artists will still be there taking money from naïve property investors looking to get rich quick More of us will move to medium and high-density living – apartments and townhouses – the dream of owning a quarter acre block will be nearly gone The younger generations will continue to leave regional Australia for the big smoke What will be different: Low interest rate, low inflation, low wages growth environment Cycles may be flatter because of the above Most Baby Boomers will have retired and Gen X will be coming up to retirement age Pension system won't be able to cope, and superannuation won't be enough to support your longer life 30-40% of the jobs we know could disappear in the next decade Links and Resources: Michael Yardney Metropole Property Strategists Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Show noters plus more here: What's ahead for property in this new decade? With Dr. Andrew Wilson Some of our favourite quotes from the show: "If we want to decentralise, there's going to have to be some different policies." – Michael Yardney "People are going to trade backyards for balconies and courtyards, they're going to want, as our cities become bigger, be in closer proximity to amenities, to lifestyle, to public transport." – Michael Yardney "Owner-occupiers go into the market with very different headspace than investors. So, it's lovely to be able to invest in a market that's not dominated by investors." – 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

Depending upon when you're listening to this, it's either just about to become a new year, or you're already into a new year and a new decade. Today, I'm going to discuss twelve things that are going to change over the next decade and ten things that are not. This is the end of my fifth decade investing in property and being able to look back and see what's gone on gives me some great perspective on what's ahead. I've done a lot of research for this, and whether you're interested in property as an investor or a homebuyer, you'll get a lot out of today's episode. The difference between Expectations and Forecasts There is a huge difference between, "I expect another next property downturn sometime in the next decade" and "I expect the next property downturn in the second half of 2024." One of the big differences is how I invest. If I expect another property boom followed by another property bust, I'm not surprised when they come. But since I don't know when they'll come, I won't make the focus of my property investing trying to time the property cycle. Because trying to time the property cycle is one of the reasons many property investors fail. On the other hand, strategic investors maximise their profits during booms and minimise their downside during busts by investing in assets that have always outperformed, rather than looking for the next hot spot or for the type of property strategy that works "now" rather than one that has worked in the long term. They own investment-grade assets in investment-grade inner and middle ring suburbs of Australia's three big capital cities. The type of property that keeps growing in value over time without fluctuating wildly in price when the property cycle slows down. What will stay the same: Australia's population will keep growing and adding around 400,000 people per annum. We'll have the requirement for 170 -190,000 new dwellings each year More congestion on our roads. Property prices will continue to increase - The property cycle will continue, Ordinary Australians will try to secure their financial future through property investment The property pessimists will still be out there telling us our property markets are going to crash Property spruikers and get rich quick artists will still be there taking money from naïve property investors looking to get rich quick More will move to medium and high-density living – apartments and townhouses – the dream of owning a quarter acre block will be nearly gone The property pessimists will still be there telling us we're in a bubble that will burst We will be living in the best country in the world at the best time in history What will be different: We will have a long period of low-interest rates and we'll be in a low inflation environment for much of the decade. This means we won't get the same level of capital growth as we have in the past In line with the low inflationary environment, most Australians will experience limited wage growth over the next years and this will impact on their ability to afford property. Lower levels of homeownership Future property cycles may be flatter because of the above – you will still be cycles but lower highs and higher lows. More people are living in blended households. Household size is increasing according to the census. The proportion of those living alone or as a couple over 60 years of age will have increased too, especially women over 60 years; sadly, most with limited financial means. At the other extreme, there is an increase in those living alone or as a couple, plus an increase in blended households as noted above – coupled with a drop in what many still think is the standard Aussie household, mum and dad and 2.5 kids. Plus, the mix from overseas has changed, with more migrants now coming from those countries with large family units. 30-40% of the jobs we know could disappear in the next decade and there will be casualisation of the workforce Most Baby Boomers will have retired and Gex X will be coming up to retirement age Pension system won't be able to cope and super won't be enough to support your longer life China will become more powerful Maybe a cashless society New technology we haven't even dreamed of Links and Resources: Michael Yardney Metropole Property Strategists Brett Warren, Director Metropole Properties Brisbane Sow notes plus more here: A dozen things that will change in property over the next decade and 10 things that will stay the same Some of our favourite quotes from the show: "In my mind, there's a big difference between expectations and a forecast." – Michael Yardney "I've found it's more practical to have expectations without forecasts." – Michael Yardney "The rich are getting richer, and that's because they own assets. So even though their incomes haven't gone up, their assets have increased in value." – 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

Would you like Lifetime Wealth? Well…today we'll explain what that means and how you could achieve it as I replay a chat I had with my good friends Louise Bedford and Chris Tate from The Trading Game as we discuss the concept of true wealth. How to Obtain Lifetime Wealth Michael shares how he bought his first investment property over 40 years ago. He's made plenty of mistakes, but has still built a substantial property portfolio. He also gives back. To be truly wealthy you need much more than just money. You need money plus family, friends, health, spirituality, growth, and contribution. Chris shares his background. It is similar to Michael's but replace the word property with shares. How children absorb things without being taught directly. Legacy and leaving a ripple or something outside of you that carries on when you are gone. We learned about money, wealth, and riches from our parents and culture. What is your financial thermostat set for? You'll be surprised – it's set for what you have already got. Your thermostat won't change until you change and throw away the blame. The imposter syndrome or undeserved success. Not feeling worthy and self-sabotaging. Self-awareness deserving your success. How people believe the tool has something to do with their success, when it is actually the software that makes a success. How people who's views are mismatched may not be a match as a couple. The disconnect can produce tension and tear relationships apart. Couple's need to talk about their views about money. Partners need to be compatible on a whole host of issues. In the old day's people passed their trades on. Now property or shares can be passed to your kids, but it is not what you leave your kids it is what you leave in your kids. How we learn about money from our parents whether it is spoken or unspoken. Replacing non-productive beliefs with empowering beliefs. Teaching kids about training by loaning them money to trade and letting them keep half of the profits. How IQ and socioeconomic status can be linked. The importance of mentorship and getting together with other entrepreneurs. Find like minded people and the isolation disappears. How attending Wealth Retreat can help change your mindset and money habits. Links and resources: Michael Yardney Metropole Wealth Retreat Chris Tate Louise Bedford Our favourite show quotes: "Wealth isn't about how much money you have, but what you're left with if you lost everything and had to rebuild it." Michael Yardney "You either have to pay the world, the market, or your mentors when learning about investing." Michael Yardney "If you took all of the money in the world and divided it equally it would all end up in the same pockets again." Michael Yardney

There are so many common misconceptions that people just don't question. In fact, there's so much misinformation surrounding wealth creation, that in today's episode, I'm going to debunk 15 common myths. If there's one thing I've learned, it's that you shouldn't allow these kinds of blanket statements to hold you back. In this episode we'll explore these statements and help you avoid the "woulda, coulda, shouldas." Money doesn't discriminate; it doesn't care who you are or where you come from. No matter what you did yesterday, today begins anew and you have the same rights and opportunities as everyone else to become wealthy. Yet the sad reality is that the majority of Australians will never achieve financial freedom. On the other hand a small group of Australian property investors become very wealthy. Today I'd like to explore the common myths about money that hold many people back from achieving their financial goals. Myth # 1: It takes money to make money Many Australians have untapped equity in their homes that they can use as seed capital for investments, while others will have to learn the discipline of saving to get some startup capital. You don't need a fortune to begin making your first million; you just need to commit to making a start and stick with it. Myth # 2: I don't make enough money Everyone makes enough money to become an investor. The truth is most people don't have an income problem, they have a spending problem. Look at your current wage and ask yourself; how much am I likely to earn over my lifetime? You've got to start living within your means, paying yourself first, saving a deposit for a property and investing in order to break your current pattern. Myth # 3: My job and superannuation will take care of my financial future If you accept my definition of financial freedom as having enough passive income to finance the lifestyle you desire, without having to work; you will never achieve this through your job or superannuation. Instead you will need to take control of your financial future by investing. Myth # 4: I'm not smart enough In our country everybody has the ability and opportunity to become rich. To reassure you that an education doesn't equal a financial fortune, here are a few multi-millionaires who never graduated from college: Bill Gates (Microsoft), Michael Dell (Dell Computers) and Steve Jobs (Apple). Myth # 5: Investing is complicated Developing your own financial freedom is only as complicated as you make it. Investing is no different. The key is to learn from the right people – those who've already achieved what you want to achieve. The process is also simplified when you select an investment niche such as residential property investment and develop specialist knowledge in that area. Myth # 6: Investing is risky Many people speculate when they think they are investing – they buy a property in a secondary location or off the plan "hoping" it will increase in value. Speculation is risky. On the other hand finding a property with an element of scarcity so it will always be in strong demand, in an area that has always outperformed the averages and buying it below its intrinsic value, is a proven investment strategy that minimises your risk. Myth # 7: You have to know how to time the investment markets It's often said that timing is everything when investing, but that's not really the case. Have you noticed how some investors do well in good times and do just as well in bad times, while others do poorly in good times and even worse in bad times? This suggests to me that it's not our external world that determines whether we make money; it's something inside us - our mindset. Myth # 8: The rich are lucky The truth is that success in wealth creation is no more about luck than is success in anything else in life. To become wealthy you have to be in control of your finances and not count on good fortune. Myth # 9: To become rich you must diversify Wrong! Yet that's what most financial planners suggest isn't it? Diversification leads to an average outcome. Myth # 10: Paying off your house provides security The problem here is that once you've paid off your house, you end up with idle equity sitting under your roof doing nothing; equity you could use as a deposit to buy an investment property and grow your wealth. Myth # 11: All the good investments are taken That's not true – opportunities are always out there – in every market. Sure, all of yesterday's deals have been taken, but tomorrow's deals have not. Someone will snap them up. Why shouldn't it be you? Myth # 12: If you want to do it right, you have to do it yourself There's no such thing as a self made millionaire. All successful property investors have a good team of professional advisors and supportive mentors around them. The rich recognise that they can't be an expert in all aspects of wealth creation, so they find a team of experts they can lead in order to help them achieve their goals. Myth # 13: I've done everythin

The facts are in again, and they show that the rich are getting richer. If you're a regular listener, you know that we've said that on many occasions. But today I'm having a conversation with Michele Levine, CEO of Roy Morgan, Australia's longest-established research company who recently released an Australian wealth report that's very different from all the other reports. We're going to dig in and explain what's really been going on over the past 10 to 15 years with some interesting findings. We chat about why the rich are getting richer and why the average Australian hasn't moved forward with their wealth over the past decade or so. We're going to explain about men and women and why their wealth has changed. Hopefully, this information will help to put you in the right position to become wealthier. Then, in my mindset message, we're going to discuss why you don't want to cover the world in leather What does that mean? Listen in to find out. Key Takeaways from the Australian Wealth Report The rich are getting richer, but on average, Australians are all getting richer In Australia, the top 10% of people hold 47% of the wealth The bottom 50% hold 3.6% of the wealth The data shows that while Australian's wealth wobbled a bit during the global financial crisis, it didn't hit Australians anywhere near as hard as it hit other countries. Australian wealth has almost doubled since the GFC Just before the GFC, Australians held 4.5 trillion dollars Now it's 8.6 trillion, or 90% more wealth Of Australia's 8.6 trillion dollars in wealth, about 6 trillion is in property Australia's debt is about 1.2 trillion Looking at the median wealth for individual Australians, it's down a little bit – about 2% The top 30% have increased by 60-65% The bottom 30% have gone up by similar amounts But the 40% in the middle haven't seen the same level of increase. Their increase has been around 20%. When you apply a CPI adjustment, you can see why the people in the middle feel less wealthy. Women still trail men in wealth. The average man has $445,000 in net wealth. The average woman has $393,00 In 2007, women had 80% of the male average wealth. Now they have about 88%. They're catching up, but they're not there yet Links and Resources: Michael Yardney Metropole Property Strategists Michele Levine, CEO Roy Morgan Research Institute More details and show notes here: The latest Australian Research is in. Here's what's happening to your wealth Some of our favourite quotes from the show: "Even though there are headwinds ahead, we're still living in a fantastic time and we're lucky to be in Australia." – Michael Yardney "That's how we tend to approach things. We think if we can just get rid of them, or cover them with leather, our pain's going to go away." – Michael Yardney "If you put on shoes when you walk across the boiling sand, the cut glass and the thorns won't bother you." – 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 have all experienced stress. Whether it is at home, at work, in our own business, stress feels an unavoidable part of our busy lives. It's the unavoidable part I want to focus on. It may be that seeing stress as something we should seek to avoid is what actually heightens its negative impact. Rather than seeing stress as something to avoid or a necessary evil there are ways in which we can look at stress as an opportunity. Stress is actually mental energy that can be harnessed. Stress basics: It's worth remembering that stress is a neuro physiological reaction to danger. When we stress and allow that stress to have a negative impact, we become physically tense. Blood flow is restricted to our muscles and even to our brain. Stanford University's Kelly McGonigal refers to this process and the connection to stress headaches. As our muscles are deprived of blood flow, we often feel tired, lethargic and may even suffer from stress-related aches and pains, not to mention lower resistance to infection, making us unwell. Step 1: change the view and harness the stress Let's go back to when stress was a valuable tool to warn us of danger. When the caveman or woman stepped out of the cave they had to determine whether that rustling in the bush was, in fact, a Sabretooth tiger. Stress in that situation is used to protect, blood brings more glucose to muscles to prepare to fight and more oxygen to the brain for clearer thinking. The point is that when stress presents itself, we are far more likely to be able to cope with it if we can change the view of it, in other words, we turn it from foe to friend. Step 2: Remember Stress builds Resilience Military training shows soldiers how to grow from stress. Dan Pronk talks about the physical, emotional and psychological stress special forces soldiers are placed under. The purpose of that generated stress is to build resilience, to help them to become stronger, learn, grow and to use the stress responses in a positive way. The point here is that if you take the right mindset approach to stress then you can actually use it as a tool to grow and improve. Next time stress rears its head, take a look at the cause and ask yourself how you can turn your approach into one of a challenge to be accepted or an opportunity to be capitalized on rather than a sign of defeat. Step 3: Remember there is always help No matter how diabolically stressful a situation may be it is important to remember that help is ALWAYS available. Thinks about some of the terrible things you see on the TV news, whether its fires, riots. Terror, in each case, as the news shows footage of people fleeing and running for their lives there is always someone running the other way, toward danger, to help! Helping is a huge part of normal human behaviour and not just the realm of professionals, so it's worth keeping in mind that when stress hits, reach out. That's the benefit of a mastermind. Remember these four things: Stress is normal, we all encounter it. Your body's natural response to stress is actually designed to help not hinder Stress can actually help you to grow, learn and build resilience There is always someone who can help. 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: Here's how to deal with stress in a positive way | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "This is just part of the journey, part of climbing the mountain. And not many people are prepared to take that climb, that makes you breathe harder and your pulse run faster." – Michael Yardney "Rather than when something happens, letting it ruin your whole day, somebody who's learned how to cope with stress keeps these inconveniences in proper perspective." – Michael Yardney "Isolation is one of the challenges successful business people, entrepreneurs, and professionals have, but it's one of the things that causes their stress as well." – Michael Yardney Show notes plus more at the show webpage: Here's how to deal with stress in a positive way | 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.

If you want to become a more successful property investor, today's show will point you in the right direction. First, we'll have a chat about where not to invest. This aren't just my thoughts. They are the results of a recent university study in Australia that shows where you shouldn't invest. Most property investors never get past their first or second property. You don't want to be in that group, do you? So paying attention to where not to invest can help you avoid falling into the trap that so many investors do. I also have an interesting mindset message for you. Finally, I'll have a chat with Dr. Andrew Wilson about first home buyers, because they're going make a difference to our property markets. This discussion is relevant for first home buyers, but it's also very relevant for property investors, as they're often investing in the same price ranges and markets as first home buyers. We'll discuss our concerns about the first home buyers' scheme that's going to be starting soon. We'll also look at what has happened when we had these schemes in the past. Where not to invest if you want property success Most property investors never achieve the financial freedom they're looking for. Of the 2.1 million property investors in Australia, 1.8 million never get past their first or second property while only 21,000 investors around Australia own 6 or more properties. A recently published report found that two-thirds of Australians buy an investment property close to where they live, rather than in another location that could outperform their hometown in the long run. These buyers felt safe buying in a familiar location, but there's no indication that their familiarity actually gave them an advantage. The report also found that investors who invest in their own area pay higher prices and that one-fifth of investors self-manage their properties. Self-management can be a big mistake. Employing a property manager is a way of insuring your asset. It's an investment, not an expense. Buying locally and putting all of your eggs in one basket may feel safer, but that doesn't mean that you'll get the best return on your investment. Becoming a success in property investing requires more time and effort than just choosing properties near where you live. But it doesn't necessarily have to require your time and effort. Turning to a buyers' agent who has more market knowledge can help you get the strategic advice you need to invest in properties that are likely to outperform. First Home Buyers rush to market fearful of rising prices As of 1st January, the First Home Loan Deposit Scheme will allow first-home buyers to put up a 5 percent deposit, rather than the usual a 10 or 20 percent deposit. This will only be available for 10,000 eligible first-home buyers each year, and there are other restrictions as well. First-home buyers wanting to use the scheme will be limited to properties sold for less than $700,000 in Sydney, $600,000 in Melbourne up to $475,000 in Brisbane and it will apply to owner-occupied loans on a principal and interest basis. Price caps for large regional centers are the same as those for the capital city in their state. It also removes the cost of lenders mortgage insurance for first-home buyers with an annual income of up to $125,000 or couples with a combined $200,000 per year. If history repeats itself, these first-home buyers will push up values in certain locations. It may also commit first-home buyers to long term financial imprisonment Why is that? First-home buyers emboldened by the home loans obtained with their low deposits will be chasing a similar range of properties and the old supply and demand ratio will kick in pushing up property prices. First-home buyers who miss out on the lottery could end up paying more for their properties or have to wait another year for the next round of grants, by which time property values will be even higher. New homes come with a lot of extra expenses and those who haven't developed a savings discipline could find themselves in financial strife. They'll have to pay interest on a larger mortgage, but then they're likely to go out and buy furniture and appliances as well, creating even more debt. This reminds me that the Government should be careful of the unintended consequences of hastily though out policies. 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 Show notes plus more here: - Where not to invest if you want property success | First Home Buyers rush to market fearful of rising prices Some of our favourite quotes from the show: "Knowing your local area is not the same as understanding the dynamics of the local property markets and understanding what does or does not make a good investment property." – Michael Yardney "If you just knew how resilient you are to life events, you'd take more ris

Have you ever felt like everyone else knows what they're doing when you have no clue? Do you sometimes believe your success is all about luck, but your failures are all you? Do you wonder when the fraud police are going to come to kick down the door and drag you from your desk? If the answer is yes to any of these, welcome to the imposter club! The good and bad news is that it's not a very exclusive club and almost all of us will be a member of this club at some stage in life. In today's podcast, I'll have a chat with Louise Bedford, who has a degree in psychology, about what's going on in your brain when you feel like a fraudster and how to try and push through those feelings. What is Imposter Syndrome, and how does it affect you? The term "Imposter Syndrome" was coined by psychologists Pauline Clance and Suzanne Imes in the 1970s An estimated 70% of people experience these impostor feelings at some point in their lives Three main components of Imposter Syndrome: Feeling like a fake Disregarding praise and achievements Attributing successes to good luck If investors don't correct their thinking, they'll self-sabotage Lies Imposter Syndrome Tells You Lie #1: You have self-doubt, so you will fail Lie #2: You can't admit vulnerability Lie #3: You're not ready Lie #4: It's a matter of time until you blow it Lie #5: They don't mean that praise, they're just being nice How can you get rid of Imposter Syndrome? Refuse to give your "inner lunatic" any light Practice self-awareness Take credit for small triumphs Keep a journal to record your thought patterns and your wins Seek constructive criticism on small matters Seek professional help if you need it Links and Resources: Michael Yardney Metropole Property Strategists Louise Bedford – The Trading Game To download your Impostor Syndrome special report, click here: To read more about Pauline Rose Clance and take the Impostor Syndrome quiz, click here Show notes plus more here: What you don't know about Imposter Syndrome could hurt you as an investor Some of our favourite quotes from the show: "If you suddenly come into wealth, whether it's through property, whether it's in lottery, whether it's inheritance, I just see people over and over again sabotage themselves." – Michael Yardney "I'm prepared to bet my money that spring's going to come after winter this time too because it always has." – Michael Yardney "I'm prepared to fail knowing that I've just found something that doesn't work, and I'll get to the next level." – 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 look back on 2019, it's going to be a watershed year for property, a year of two halves. At the beginning of the year everyone was very nervous about the future of our property markets. At the end of the year there's so much more optimism. Of course, there are still some economic issues and headwinds ahead for our property markets. But we've recently conducted our annual Property Investor Sentiment Survey, so today, I want to share what 1,800 property investors are planning to do for 2020. This will help you understand where you fit in with a wide range of other Australian investors as well as giving you a glimpse ahead, because investors do move our property markets. Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would-be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. I'm joined today by Sarah Megginson, editor of Your Investment Property Magazine. Investor profile shifted slightly: 2017 - 28% owned 5 or more properties 2019 - this had dropped to just 17% owning 5+ We're not sure whether this reflects a drop in property ownership or a change in the type of people who are replying Rentvestors: 16% of respondents were rentvestors in 2019 Almost half (48%) the respondents would consider using it as a strategy to get into the market Investment Strategy: Investing for "Long term capital growth" and "buy, add value and hold" remain the two most popular property investing strategies Long term growth was the no.1 strategy for 59% in 2017; 51% in 2018; 49% in 2019. Add value and hold the property largely unchanged, 20% in 2017; 19% in 2018; 19% in 2019 - so around 1 in 5 investors adopting this strategy Sentiment: People remain positive, as the majority reported that now is a good time to buy property in 2017 (61%), 2018 (52%) and 2019 (68%). 19% of respondents plan to buy a new home in 2020 – the same as last year (2019). This was down from 23% in 2018 (but still higher than the number planning to buy a new home 3 years ago (14%) Takeaways from our conversation: Watch out for analysis paralysis. Don't buy investment properties for tax benefits. Treat your investment properties as a business. Negative gearing is not an investment strategy. This is the best countercyclical opportunity to invest in a long time. Don't change your long-term strategy because of short-term circumstances. In today's tighter finance environment, living off equity is very difficult. If you want to outperform the averages, you need expert advice. But be careful who you ask. Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Sarah Megginson – editor Your Investment Property Magazine Get the results of the 2019 Property Investor Sentiment survey here Show notes plus more here: Here's what 1,800 investors think is going to happen to property in 2020 Some of our favourite quotes from the show: "Don't make 30-year decisions based on the last 30 minutes of news." – Michael Yardney "The decision to buy a home doesn't depend as much on the market as, I guess, your family circumstances." – Michael Yardney "All the successful people I know don't particularly want to retire, they just want to work at their pace, do what they want to do, when they want to do it, with whom they want to do it, and have choices." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to be rich and successful be like Spock. If you're a Star Trek fan, you'll really enjoy that segment where Tom Corley and I discuss controlling emotions as being one of the rich habits. And even if you aren't, you're going to get a lot of good information out of it. Then, I'm going to teach you one of the lessons I learned many years ago. It's an extended mindset moment about the Law of Belief. Once you understand the Law of Belief, you're going to be much more in control of your life. You'll be able to develop some more rich habits and get rid of some poor habits. Why You Want to Be Like Spock For the few listeners out there who have never heard of Dr. Spock, he is the Vulcan in the Star Trek series, books, and movies. Spock's overriding character trait was that he never expressed emotion and, thus, was ruled by logic. There is a great deal of new brain science out there that explains how emotions, in particular, negative emotions, alter brain performance. One of the most profound impacts emotions have on the brain is that they interfere with the operations of the Prefrontal Cortex. Why is that a problem? It's a problem because the Prefrontal Cortex does numerous things, some of which impact your ability to live a successful, happy, healthy and wealthy life: Executive Command and Control – The Prefrontal Cortex is the area of the brain where logic and decision-making reside. Creativity – Insight, flashes of genius and intuition result from the joint communication between the Prefrontal Cortex and the Limbic system. Consciousness – Although consciousness is spread out among many areas of the brain, the Prefrontal Cortex is the CEO of consciousness and self-awareness. Emotional Control – The Prefrontal Cortex has the ability to stop emotions in their tracks, upon command. When your emotions erupt, you have two choices – let them flow or shut them down. When you allow your emotions to flow, the Amygdala, one of the primary emotional centers of the brain, takes complete control of the brain by shutting down or overpowering the Prefrontal Cortex. There are millions of people around the world, sitting behind bars, all because they allowed their Amygdala to control their behaviours and decision-making. So, controlling your emotions keeps you out of trouble? Yes, but it is much more than that. Controlling your emotions also happens to be critical to success, wealth, health and happiness. When the Prefrontal Cortex is trained to control emotions, and this training becomes a habit, the Amygdala loses all power over you. This allows you to intelligently and logically think through difficult situations, without any emotional interference. Those who have trained themselves to be unemotional are able to tune out all negativity, no matter the source, and go on about their business. Becoming successful is a process. Part of that process is learning to Be Like Spock and control your emotions. And, it's a big part of that process. The Law of Belief Many years ago, I learned about the Law of Belief from Brian Tracy, one of my mentors. The Law of Belief states that whatever you believe with emotion, becomes your reality. The Law of Belief says that you don't necessarily believe what you see, you see what you have already decided to believe. In other words, your beliefs control your reality. You act in a manner consistent with your innermost beliefs and convictions. It's not hard to tell what anyone believes by simply looking at what they're doing. This is a foundational law in life. That means that without wholeheartedly believing that something can actually be part of your reality, it will always remain out of your reach, no matter how desperately you want. Our thoughts and our beliefs lead to our feelings, our feelings lead to our actions, and our actions lead to results. But the great thing about the Law of Belief is that it's reversible. Our beliefs are built on a mixture of facts and fictitious perspectives. We learned the beliefs that we had when we were young. Beliefs are nothing more than illusions of reality, and we're all walking around with tinted glasses on. The problem is that we don't know we're wearing tinted glasses. Our self-limiting beliefs make up fundamental flaws in our psychology. The biggest part of success has to do with the way you think and the way you feel. All the good property advice and information in the world won't be enough if you're sabotaging yourself with self-limiting beliefs. But, if you engage in actions consistent with the beliefs you want to have about yourself and about your life, you can eventually develop the muscle – the beliefs – by lifting the right weights. Links and Resources: Michael Yardney Metropole Tom Corely's Rich Habits Blog Get your own copy of our international bestseller Rich Habits Poor Habits Show notes plus more here: If you want to be rich and successful be like Spock PLUS the Law of Belief | RICH HABITS, POOR HABITS Podcast Some of our favourite quote

We know the Reserve Bank is determined to lower unemployment and increasing wages growth and inflation. It's attempting to do this by lowering interest rates and is even talking about other measures such as quantitative easing. But what if this doesn't work? What if the only effect of lowering interest rates is pushing up property values, yet the economy doesn't pick up? That's the subject of today's chat with Dr. Andrew Wilson. We discuss some really interesting things about the economy, what's happening overseas, and what it means for you, me, our wealth, for interest rates, and for our property markets. But first, I'm going to share five property investment lessons you can learn from farmers and a mindset moment with you. 5 Lessons property investors can learn from farmers Look at your salary or wages the way a farmer looks at his seeds. Think about how and where you can 'plant' that income to create a return on your investment, instead of focusing on consumption and spending. Be patient and look after your investment the way a farmer tends his crops. As a property investor, you need to understand that long-term market cycles (as with the seasons) and time in the market will ultimately determine your capacity to produce a post-work income through real estate. Be selective with how you use your growing asset base like a farmer is selective with his harvest. As an investor, you need to keep an eye on your growing portfolio and know when to take out some profit. In the asset-building phase of your investment journey, you should only take out profit to reinvest for accelerated returns, just as a farmer re-sows the best seed to make sure each new crop is more bountiful than the last. Each new cycle should be seen as a chance to grow your wealth. Like the farmer, you don't want to consume the fruits of your investment labors, but continue to look for new buying opportunities that will enable you to use that good quality profit to acquire even more good investment-grade properties. Work your investment portfolio, the way a farmer works his land. For property investors, the lesson is to be an active participant in the growth and sustainability of your portfolio. This means taking care of your investments, regularly reviewing their performance and protecting them with necessary asset protection structures, cash flow buffers, and insurances. It also means keeping a close eye on the performance of your properties and if necessary, doing a bit of 'weeding' if you have underperforming assets that are threatening your harvest. What if rate cuts don't work but only push up property values It seems the RBA is aware that their low-interest rate tactic may backfire. In the minutes of their October meeting, RBA board members stated that "policy stimulus might be less effective than past experience suggests." The IMF's World Economic Outlook cut its growth forecast for the Australian economy from 2.1 percent to 1.7 percent — a level below the government's and the Reserve Bank's forecasts of about 2.25 percent. In their minutes they noted that the Reserve Bank's most recent forecasts suggested that unemployment and inflation rates over the following couple of years were "likely to be short of the Bank's goals". The RBA minutes justified their decision to cut rates in October. They suggested that holding back rate cuts in anticipation of a negative shock was not the best policy. Instead, they felt it is better to cut rates, strengthen the economy immediately so that the economy would be better placed to absorb a negative shock. The Board minutes leave little doubt that another cut is expected. We're in for some interesting times ahead. 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 More details and show notes here: 5 Lessons property investors can learn from farmers | What if rate cuts don't work but only push up property values? With Dr. Andrew Wilson Some of our favourite quotes from the show: "To find success in growing your own crop of high growth assets, you must change your focus from consumption to production." – Michael Yardney "Your thoughts lead to your feelings, your feelings lead to your actions, your actions lead to your results." – Michael Yardney "Just because spring arrives doesn't mean things are going to look good in autumn." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Around this time every year, a little animal creeps out. They're called naysayers. And they find all the bad things that are going on in the world, rather than seeing the good things. Rather than being grateful. Interestingly, in the 40-something years, I've been investing, the naysayers always come out. And interestingly, they've always been wrong. So in today's episode, I'm going to explain to you why these are the good times – why these are the times you should be enjoying and appreciating. Then we'll have a chat with my business partner Brett Warren about why he left $50,000 on the table by not doing a property deal. Some great information there. And there will also be a lesson in my mindset moment that I think is going to help excite and stimulate and influence you to go for some great things. Why These Are the Good Times The steady stream of "bad news" we receive via our 24/7 news cycle is enough to get anyone down. It's easy to buy into the doom and gloom hype in the media these days. So, it's no wonder many of us are pining for the "good old days". But what if I told you that you've won the lottery and right now, we are living in the best country in the world and at the best time in human history? Thanks to the internet, we have a whole world of possibilities our parents and grandparents would never have dreamed possible. We can video chat with friends and family on the other side of the world, work from home and even gain qualifications through prestigious overseas universities, all without leaving the couch. We have limitless news and entertainment right at our fingertips. International travel has never been cheaper platforms such as Airbnb enable us not only to travel on a budget but also to make some cash on the side when our home is empty. Most of us can afford to eat at restaurants and buy takeaway on a regular basis, even if we don't have a huge income. And if we can't be bothered going out, we can have the finest cuisine brought to our home using apps like UberEats. So what is wrong with this picture? Human nature is such that with all these advances and improvements, we can't help but want more, more, more. But none of it is real. Real happiness and real financial security can't be found at the bottom of an award-winning bottle of wine in a fancy restaurant. It's gained through hard work, discipline and maintaining your priorities – spend a little here, save a little there, until you reach a point where you're no longer dependent on your weekly wage to make ends meet. Until that time, you're never truly free, because you're always at the mercy of your creditors, your employer, or the economy. Becoming financially free isn't about having the best of everything – you have to make sacrifices in some areas so that you're able to splurge on the things that really matter to you. It's called delayed gratification. Then follow these three simple steps to financial freedom: Spend less than you earn (otherwise you'll always owe money.) Save and invest wisely in income-producing growth assets like residential real estate. Reinvest your money and use compounding and leverage to grow your asset base until you have a cash machine. Now don't underestimate the importance of this simple message. Every little step you take towards that dream is progress, even if it doesn't seem that way at the time. Why I said no to a $50,000 profit with Brett Warren Never make long term decisions, based on short term information. It's easy to focus on the short term: In this case a possible $50,000 profit as a one off hit flipping a property. But it's an error to assume that everything will go according to plan. In this case, to achieve the best-case scenario, you would need to hope that: The purchase would go to plan at the right price There would be no significant issues with the renovation It would be easy to find a tenant paying the desired rent The valuation would stack up at the end You need a backup plan in case one or two (or more) of these factors don't work out as you hoped. This is the risk of the transaction alone, let alone the idea of holding on to the asset and renting it out for the long term. The better plan is to focus on the longer-term and reduce risk. Focus on areas with a higher percentage of Owner Occupiers Homeowners are in it for the longer term and will not give up their homes so easily, this leads to less market volatility. At Metropole, we look for suburbs where the locals have a high disposable income. We look for locations where the wage growth is higher. We also look for locations where jobs are plentiful. The people living here will generally be able to ride out the difficult times. We also look for aspirational suburbs and gentrifying suburbs. As a result, these locations perform significantly better with less risk. Links and Resources: Michael Yardney Metropole Property Strategists Brett Warren – Metropole Properties Brisbane Organise a time to speak with Brett by clicking here Show notes p