Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

Have you made any mistakes in your investment career? If you're an investor, you almost certainly have made some mistakes. Nobody starts out as a great investor – property investment is a learned skill. Today, I'm going to share with you one of the biggest mistakes I made early on in my investment career. I hope you'll learn something from my mistake today. I'm then going to have a chat with Pete Wargent about 3 demographic trends you need to understand as a property investor. I also have a great mindset message for you. My Worst Investment Loss Exposed! I'm keen to tell you the story of how I lost 100% of my invested capital many years ago, way back in the 1970s, and the investment mistakes I made which created this disastrous result. But first I want to explain the 2 main reasons why I'm sharing this story. Losing investments can be great teachers. You'll not only learn from the investment mistakes you make, but you can also learn from other people's investment errors so that you don't have to make the same mistakes yourself. Most investors pay the market a huge learning fee in the way of mistakes. Studies show that around 50% of investors who buy an investment property sell up in the first 5 years. Clearly, they've done something wrong. And most investors who stay in the game don't make it past their first or second property, so clearly, they're not doing things right. So why not learn how to avoid their common mistakes? Losses are a natural and normal result of making investment decisions. Don't be so hard on yourself when things don't go as planned because the key to long term success is what you do when this occurs and the lessons you learn from your mistakes, so you don't repeat them. Here are a few of the more obvious mistakes I made with this investment: I gave my money to a virtual stranger without doing enough due diligence I invested in something I didn't understand I bought a story rather than investment fundamentals. I was lured by the opportunity of making quick money In reality, I was speculating, not investing and risked money I couldn't afford to lose. I had no investment strategy – just a desire to get rich quick. I learned many lessons from this experience including: Not everything that glitters is gold Sometimes your best investments are the ones you don't make. Don't invest in anything you don't fully understand. I knew nothing about gold mining, so I was speculating rather than investing. I had no competitive advantage and there was no mathematical expectation for my investment strategy. One of the worst things that can happen to an investor is to get it right the first time. I thought I was smarter than I was when in reality my investment success so far was in large part to a rising property market – a boom that made me look smarter than I was. Don't become overconfident -the market will soon humble you. I didn't understand the incentives of the so-called "advisor" who really had a vested interest which created biases in the recommendations he gave me. My worst investment mistake was a cheap lesson This investment was the first of many learning fees I've paid to the market over the years. I've made a lot of mistakes and paid a lot of learning fees during my journey to investment success. Nobody starts out as a great investor. Property investing is a learned skill. You now have indisputable proof that I began life as an investment sucker. Few people have made more mistakes in their investment journey than I did. In fact, I've often said I'm a real success at failure. Yet, I'm a successful investor today, and it's largely because I've learned from my mistakes. I hope you've also learned something from my mistake. Highlights from my conversation with Pete Wargent about Demographics Demographics drive the property markets One of the big changes ahead are the technological advances that will change the way we work. As many as 30-40% of the jobs today may not exist in their current form by 2030 Property price growth is linked to wage growth so it's important to understand what's going to happen to wages Livability becomes more challenging as cities become larger and infrastructure and transportation don't keep up People will want to live near where they work and near public transportation, especially in cities large enough for car ownership to not be realistic for many people 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 more notes and details at the show web page: My biggest investment mistake exposed | 3 demographic trends all property investors must understand with Pete Wargent Some of our favourite quotes from the show: "I've actually learned to say no to more opportunities that come up than yes, and I've made more money by saying no to them." – Michael Yardney "One of the key factors to my investment success is that I alw

Wherever you look property is in the news. And while there are many more good news stories than there were at the beginning of the year, there is also a lot of conflicting information. So to bring some clarity to some of the recent news stories, I have a chat with Australia's leading housing economist, Dr Andrew Wilson chief economist of myhousingmarket.com.au. We discuss the following: Is the property market recovery real? One of the interesting stories that has been creating some debate In the media is whether the property market recovery is really happening in Melbourne and Sydney. It started when Nerida Conisbee, chief economist of realestate.com.au suggested that their figures did not reflect the housing boom as seen by CoreLogic. Corelogic report that both Melbourne and Sydney property values have increased over 5% in the last quarter. Of course these markets are playing catch up, as they are the markets that had the largest decrease in value during the recent downturn. Sure the lower turnover means that stats may not be as reflective of the general market as when there were more sales, but REA came out with their view despite them not really having an index. They seem to just look at clicks on their site. I can tell you that on the ground the segments of the market wear Metropole have been buying investment-grade properties and A grade homes in Sydney Melbourne and Brisbane are definitely on the move. Tax rules blamed for Australia's property obsession The Australian newspaper reported that a panel of experts has declared Australians "dangerously obsessed" with housing, pinning the blame on tax rules that have lured waves of baby boomers into investment properties and fuelled an unsustainable credit boom. "Boomers, they're using the second, third, fourth and fifth property as retirement funds, and they're not investing to get a decent yield. They're betting the house, literally, on the capital gain," said the article. On the other hand, you will hear Dr Andrew Wilson and I explain there is nothing wrong with having the ambition to own your own home or create wealth through property investment. Sure Australians have taken on debt, but in general it is in the hands of those who can afford it and secured by income producing assets, or the family home and currently the rate of mortgage default is very, very low. I would say Baby Boomers recognise that the government isn't going to look after them in their golden years and that superannuation isn't enough – so yes they are obsessed with securing their financial future. But is there anything wrong with that? The latest finance figures – owner occupiers are driving the housing rebound The September housing finance approvals showed a much stronger than expected rise in owner occupier loans but a pull-back in the value of investor loan approvals leaving the total value of approvals broadly in line with expectations. The number of owner occupier loans surged 3.6% in the month, well above market expectations of a +1.1% gain and a clear signal confirming the market recovery already evident in the auction, price and turnover data. The number of loan approvals is now up 11.4% from its April low and 0.5%yr. The number of first home buyer approvals dipped slightly in the month. Overall, the result confirms the clear upturn in activity since mid year is carrying into year end and suggests that rather than the more balanced upturn shown a month ago, the gains are being driven more by owner occupiers than investors. This is important for the medium term market outlook as it suggests the upturn will be more sensitive to affordability than the previous investor-led cycle. However, when comparing mortgage approvals to those to the levels of 12 months ago, we have a long way to catch up. The RBA has downgraded its forecasts. Dr Andrew Wilson and I discuss the RBA's recent forecast downgrades for inflation, wages growth and economic growth and what that could mean for you. 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:- Are Australians really obsessed with property? A worrying statement from the RBA plus more - PROPERTY INSIDERS with Dr. Andrew Wilson PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it's your way of passing the message forward to others and saying thank you to me. Here's how

If you're a property investor, in business, or an entrepreneur, you're really going to enjoy today's show. Simon Kuestenmacher, Director of Research at The Demographics Group, is joining the podcast today, and we're going to talk a bit about demographics – how many Australians there are, where they're living, where they want to live. But more importantly, we'll talk about what the big trends are and how they're going to affect our property values and the economy. We're going to speak about what the right sort of property is going to be in the future for our burgeoning population, where they're going to want to live, how they're going to want to live, and where property values are going to increase. It really is people who are going to create the need for property, so let's understand what those people are going to need. Highlights from today's conversation with Simon Kuestenmacher: Population growth is one of the major demographic trends that will influence Australia's property markets. Despite the large Baby Boomer demographic, Australia's population is aging at a slower rate because the country has so much migration New migrants tend to move as close as possible to job centers and knowledge centers. But established migrants act on the housing markets like everyone else. Large populations of immigrants aren't a problem if distribution and infrastructure are handled correctly. But over the last 10 years, infrastructure hasn't grown at the same rate as the population, and that's created problems. Inner suburbs are not densifying. Distribution of the population requires that developers are on board to help create the housing needed at the pace required. There are two ways to build housing at a rapid pace: by building skyscrapers in city centers or bulldozing land to build homes on the greenfield sides. Housing at scale is not being added in the inner suburbs, so people who want bigger housing have to look outward. This is a good time to build high-quality and beautiful housing that will last inter generationally. Town planning and regulations are an issue. To densify the missing middle, you must contend with local government regulations and concerns. Any kind of property in the inner 10 km of a capital city will likely continue to be a good long term investment. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Simon Kuestenmacher - Director of Research at The Demographics Group Show notes and more details at our show page: The most important things investors need to understand about demographics with Simon Kuestenmacher Some of our favourite quotes from the show: "Australia's been built on migration going all the way back to the 1800s and the gold rush." – Michael Yardney "The challenge is firstly town planning, and also NIMBYs." – Michael Yardney "We are so lucky that we live in the best country in the world." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Where's the best place to be born? Where you're born will make a big difference in your life, in your lifestyle, the amount of wealth you can get, and the health you're going to have. That's one of the things we'll discuss in today's episode. For people interested in property investment, John Lindeman has a great cash flow surprise for you. Then, in my Mindset Moment, I have a lesson for you from one of my mentors. Where's the best place to be born at the moment Even if you weren't born there, Australia is a great place to live. And many of you are living there now. Both Melbourne and Sydney earned perfect scores in this year's The Economist Intelligence Unit's Global Livability Index. Melbourne last year ended its 7-year run as the top city in the survey. This year, Vienna topped it by .7 of a point out of 100. Melbourne took the number 2 spot this year, Sydney moved up from 5th to 3rd, Adelaide was 10th, and Brisbane and Perth came up in the next ten. So, 5 of our capital cities ranked among the top 20 cities in the world. Aren't we lucky to live in Australia? We're in the best place in the world at the best time in history. So why are so many people miserable? The Economist has found that being rich helped people's happiness. But it's not everything. Other factors included crime rates, trust in public institutions, and the health of the family. According to the 2019 World Happiness Report, there are three important factors to finding happiness: Relationships Money Health How wealthy you are has a lot to do with living in the luckiest country in the world, and if you're living in Australia, you're living in the luckiest country right now. And it's about to get a whole lot better. The latest Roy Morgan Wealth Report revealed a very positive long-term trend. Australia has performed very strongly over the past 12 years compared with other OECD nations – particularly in Europe where many nations went backwards over the same period. Since 2007, net wealth per capita in Australia has increased by 65.1%, with gains across all levels. The wealthiest 10% of Australians with an average net wealth of over $2 million (up by $811k from 2007), hold 47.9% of net wealth. The poorest 50% of Australians with an average of $31k (up by $11k), who despite gains have seen their total share of net wealth fall from 3.9% to 3.7%. Our geographic neighbors China and India will outpace us in private wealth growth, but if we play our cards right, not only will we be providing these nations with natural resources, but with education, health and technology. And there is the real opportunity for our tourism industry to flourish as we become the playground of a rich new middle class in Asia, just as we were one of the preferred holiday destinations for the Japanese in the 1980′s. Australians and particularly property investors seem to have lost their mojo. Sentiment is improving, but consumer confidence has been low for some time and many potential property investors are sitting on the sidelines waiting for someone to ring the bell confirming the market has bottomed. They're being fed by the media who in general have forgotten that we're the lucky country. They forget that as a nation of around 25 million people we punch well above our weight with the world's 14th largest economy. Australians tend to take many things for granted. Yet despite all our challenges, in certain respects, times have never been so good for us. Our economy is in second gear, not in reverse. Our political system is solid, and our banking system is sound. Income levels are at or near historic highs and our life expectancy continues to increase steadily. We should feel very lucky for the situation we find ourselves in and naturally being a great place to live is strongly positive for our housing markets. The fact is, as Australians we have every reason to be proud of where we live and excited about our future, including the long-term health of our property markets. Cash flow comes to the rescue of property investors The average gross rental yield over the history of Australia is about 11.2%. At the moment, it's 4.3% -- much lower than average. Although long-term growth hasn't been phenomenal, it's been steady. With the continuous price growth, the yield drops if rents don't go up. However, this is an abnormal situation. Population growth is continuing at a fairly high rate, and 60% of those are overseas arrivals, and they need to rent for a number of years. So rent demand is rising, and rents are going to raise dramatically over the next couple of years. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors John Lindeman – Lindeman Reports Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us More details at the episode web page: Where's the best place to be born at the moment | Cash flow comes to the rescue

Can property investment really fund your retirement? Will this really be possible at a time when the banks are being stricter with their lending making it harder to grow a significant portfolio and at a time of lower capital growth? That's what we're going to discuss in today's episode as I have a chat with Pete Wargent. We're going to look at how you can take control of your financial future, why many investors fail, and the strategies of debt in retirement and how to reduce debt before you retire. What you need to know about self-funding retirement through property Over 2 million Australians invest in property. You're probably one of them. These investors are looking to take control of their financial future and hope to one day live of the rents of their property portfolio. But is this still possible in today's more restrictive lending environment – how many properties do you need to live off your property portfolio and how do you handle your debt when you retire? Most property investors fail They never build a sufficiently large property portfolio to be able to live off its fruits – why is that? They start too late The don't buy the right assets – they don't get sufficient capital growth They don't stay in the market long enough – it takes 20 and more likely 30 years to grow a big enough asset base We don't know what the future holds The rules have changed since the global financial crisis with more restrictive lending and the world will change again in the future. We don't know if there will be a pension, what the superannuation rules will be, whether you will be able to negatively gear One thing we do know: if you have a substantial asset base, you'll have options The 3 stages of wealth creation Asset growth – requires leverage Transitioning to lower LVR Living off your property portfolio How are you going to repay all your loans before you retire? Part of successful investment is having a strategy – a strategy for property purchases, a strategy for asset protection, a finance strategy and an exit strategy knowing how you're going to repay your debt before you retire. You don't need to fully pay off your debt before you retire, but you must assume that the banks will not be comfortable extending you further debt unless you can prove serviceability. In my mind, it's not necessary to repay all your debt before you retire but debt serviceability is very dependent upon interest rates and therefore it is important to go into your retirement years with the level of debt that is easily manageable and there would not choke you financially if interest rates changed. With that in mind how I like to structure our clients' portfolios is that when they go into retirement, they have a mixture of assets: their home with no debt against it superannuation which should be bringing them income a property portfolio that is no longer negatively geared, and if it does have debt against it the LVR is such that the portfolio generates income. This does not need to be a lot of income but needs to be sufficient so that your property portfolio is not draining your cash flow having no debt may not be an optimal strategy as a conservative amount of leverage going into retirement could work well for some people Often our clients will live off their superannuation for the first 10- 15 years of their retirement years allowing their property portfolio to once again double invaluable and therefore naturally lowering the loan to value ratio allowing the portfolio to spin off cash flow. Other clients achieve their cash flow in retirement through the dividends from shares or from the positive cash flow of commercial property investments Strategies to reduce debt During the investment journey stage where you lower your loan to value ratios, the following strategies can be used slowly lower your loan to value ratios by not buying further properties and allowing the natural increase in the value of your well-located assets to keep growing and at the same time lowering the LVR's paying principal and interest replacing growth properties with cash flow positive properties, but not secondary properties – instead of adding commercial properties which have strong cash flow and still some growth to the portfolio renovating or redeveloping properties in the portfolio to increase cash flow selling one or two properties – remember capital gains tax and bank repayments of existing mortgages will be required meaning you won't end up with this much money as your equity may have suggested. Selling assets in your SMSF which would not attract capital gains tax and then distributing the proceeds tax-free to help pay off debt outside the SMSF. Strategies to be used during retirement Downsize your home – this doesn't often work as well as some would expect as selling up and buying a good apartment, townhouse or villa unit in the same location may not give you much change Withdraw some funds from super - after 60 you could withdraw funds tax-free, either to liv

Are men and women different when it comes to their wealth habits? The simple answer is yes and in today's episode you may find out a little bit more about how you're wired. You see… we all have some rich habits and some poor habits, so after this episode, you'll be able to adopt some great rich habits and eliminate some of your poorer habits. Differences Between Rich Habits of Men and Women #1 Gambling Women gamble less than men. Not only do fewer women gamble, but for the women who do gamble, they gamble less frequently. #2 Risk Tolerance Men have a higher risk tolerance than women. Men are by nature hardwired to be more aggressive than women. This aggressive nature gives men a higher risk threshold. This is a good thing and a bad thing. A low risk tolerance is a good thing when it comes to making big purchasing decisions. Women are more apt to study the details of a major purchase than men. The devil is always in the details, so understanding the details can save you from making a big purchasing mistake. #3 Reading Women read more than men. That's the good news. The bad news is that women read more for entertainment. Men, conversely, read more for learning and self-improvement. #4 Communication Women are better communicators than men. In fact, the average woman speaks 7,000 words a day compared to 2,000 for men. Good communication is a Rich Habit. Miscommunication damages relationships, businesses, negotiations and can lead to mistakes and failure. Because women are better communicators, they are better at seeking feedback. Feedback is critical to understanding what to do and what not to do. Good feedback minimizes mistakes and reduces the probability of failure. #5 Creativity Men are more creative than women. This is physiological. Men have a smaller corpus collosum. The corpus collosum is the bundle of neural never fibers that separates the right hemisphere of the brain from the left. Recent studies on creativity have shown that those with a smaller corpus collosum are hardwired for greater creativity. #6 Organizational Skills Women have greater organizational skills than men. Because they pay more attention to details and are more cautious by nature, they tend to do more planning. This makes them better organized when it comes to facts then men. #7 Saving Money Women are better at saving money. They are more cautious with their money. They comparison shop to get the best deals. They look for discounts. Links and Resources: Michael Yardney Metropole Tom Corley Rich Habits Get your own copy of our international best seller Rich Habits Poor Habits More details at the episode page: 7 Shocking Differences Between Rich Habits of Men and Women | RICH HABITS, POOR HABITS Podcast Some of our favourite quotes from the show: "The habits that you have are the reason that you either live in a beach house or in a slum in the outer suburbs." – Michael Yardney "Poor communication damages relationships, it's not as good in business, it makes it hard for negotiation, and it leads to misunderstanding, mistakes, and failures." – Michael Yardney "You are today the result of all the things you've chosen to do and all the things you've chosen not to do." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

If you're a property investor, today's episode is a must. Why? Because the tax man is after you – you and all property investors. Recently, the tax department recognized that 90% of property investors' tax returns contain an error. 9 out of 10! They've found a number of common errors, and today Ken Raiss and I are going to tell you what they are and how to avoid them. Remember, if you follow the letter of the law, you'll have no reason to worry even if you do get audited. Will your rental property make you a target for the tax man? The Australian Taxation Office might be taking a much closer look at your tax return this year than you would like. Due to significant increases in the ATO's operating budget particularly with technology, property investors are in the ATO sights. There are several key areas that the ATO sees as possible 'errors" made by property taxpayers and 2019 will see a doubling of taxpayers being audited. And with the ATO estimating that over 90% of tax returns contain errors it's easy to understand their new-found enthusiasm in reviewing property investors deductions. Some of the more common areas taxpayers must pay particular attention to include: 1. REPAIRS VS. MAINTENANCE The tax man wants to ensure you don't get immediate tax write-offs for improvements by calling them repairs. In short, a repair brings an asset back to the same condition it was in when you first acquired the property. An improvement, on the other hand, is improving the asset beyond its original condition and/or changing the nature of an asset and is depreciated as opposed to written off in the year of expenditure. The cost of repairs can be claimed in full in the year they are incurred whereas an improvement must be depreciated over its useful life. It is not always easy to ascertain whether a cost is a repair or improvement or both, so in many situations, you should obtain tax advice. 2. INTEREST EXPENSES The deductibility of the loan will be determined by its purpose. So, make sure your loans are correctly structured. Keep good records i.e. you can demonstrate what investment asset each loan relates to. Errors include incorrectly claiming interest that was not tax-deductible (i.e. debt was not used to produce taxable income e.g. a home loan) and/or the loan purpose was not able to be proven by the taxpayer e.g. they mixed purposes in one loan. 3. PROPERTY DIVESTMENTS If you sell an investment property you will need to calculate the capital gain (or loss) This capital gain will be taxable and if your property is owned for over 12 months you will benefit from a 50% general discount if purchased with the intention to own the property as an investment. If you purchased the property with the intention to sell it at a profit, you can't claim this CGT discount. Capital works depreciation (the depreciation benefit you claim against your tax) needs to be added back to your profits thus increasing the profits from your sale. 4. PERSONAL EXPENSES INCLUDING HOLIDAY HOMES The ATO's main concern is making sure that any deductions claimed with respect to holiday homes that are rented out for part of the year are correctly apportioned. If you rent out your holiday home, carefully apportion your expenses taking into account whether the property was rented at a rate below market (to friends or family), whether it was available for rent during peak periods, if the owners unreasonably refused tenants and whether the owners genuinely took steps to find tenants during periods it wasn't occupied. If you own a holiday house that is partly rented out and partly occupied, ensure you use the services of an experienced registered tax agent. 5. RENTING PART OF YOUR HOME If you are renting part of your home, you must declare the income. Costs associated with the income are proportionally deductible. The renting of a room or the total property on say AirBNB must also be reported to the tax office. Renting part of your home will create annual tax liabilities and therefore a proportional loss of the Main Residence Exemption you receive for Capital Gains Tax when you sell – in other words, you'll have to pay some CGT when you sell your home. 6. SUBSTANTIATION OF EXPENSES - RECEIPTS The onus is on the taxpayer to prove a tax deduction is legitimate. In the absence of this proof, the ATO will simply deny the deduction. The ATO found that many taxpayers failed to produce sufficient evidence of expenses claimed e.g. receipts. A simple answer to this is to ask your managing agent to pay for all expenses from the rental income they collect for your property. Doing this means you no longer need to take responsibility for record-keeping. At the end of the financial year, your property manager will provide you (and your accountant) with a report itemising all your income and expenses for the year. What about the penalties? The number of penalties that the ATO seeks to charge for 'errors" will depend on the circumstances and they will normally range from 25%

Do you want to become rich? In today's show we're going to look at the habits you're going to have to form to become richer, more successful, and get further in life. This podcast is part of a series I've been doing with Finder.com.au. and in this episode, Mark and Sally ask me some of the same questions that you're probably also been thinking about with regards to what makes the rich different, apart from the obvious – they have more money. Self-made millionaires exhibit some of these Rich Habits: They plan their future - set daily, weekly, monthly and long-term goals Making money is one thing, but creating wealth is an entirely different thing. They wake up early and plan their days For many, their most productive hour is early in the morning before all the interruptions start They exercise and remain physically fit You need to be fit emotionally and physically to fire on all pistons. They're good savers – the spend less than they earn, save the difference and invest They put together a financial plan, they budget, they focus on increasing their incomes and they automate their savings They get an early start with wealth building and allow compounding to work in their favour. They understand the importance of delayed gratification There's a mindset that's prevalent these days. It's one of instant gratification in an on-demand society that looks for quick results with very little effort. The rich know that life doesn't work that way. You need to put in the sweat equity if you're looking to gain serious results They educate themselves, they're always learning They read daily for education – not entertainment They upgrade their skills and knowledge to make themselves more valuable They hang around the right people You are the average of the 5 people you hang around the most There's a saying: "Your network is your net worth." In other words, if you lie down with dogs, you'll come up with fleas. They seek advice and have mentors – prepared to pay for it Be very careful selecting your mentors – there are many life coaches, business coaches and mentors out there who haven't achieved much in their own lives and while they are well many, often caring people – but they can't teach you something that they haven't really achieved themselves. Find someone who has already achieved what you want to achieve. They have earned efficient time management Everyone in this world has the same amount of time. The 24 hours of each day is life's greatest equalizer. But it's what you do with your day that will make a difference to how productive you are, how much value you add and how much money you make. They don't gamble The poor see gambling as their easy way out of the rat race. The Rich know gambling is a tax for people who can't do math. They are generous – give to charity The rich believe that if you get to the top you have to send the lift down to bring others up. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Get the book: Rich Habits, Poor Habits This show originally appear on the Finder.com.au Pocket Money Podcast You can read a transcript of the show on Finder or here : Want to get rich? These are the habits you need to learn Some of our favourite quotes from the show: "Your outside world is really a reflection of what's going on inside." – Michael Yardney "If you eat like healthy people eat and you exercise like healthy people exercise and you think like healthy people think, you're going to change your body shape and your weight and your health, and much the same with successful people." – Michael Yardney "It's never too late, but it takes a long time to create wealth, particularly in today's low interest rate, low wages, low return environment." – 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

In today's show, I'm going to teach you the most important money lesson you can teach your children to help them become successful in life. This lesson is relevant to you as well, so even if you don't have children, you can learn something from listening to this episode. Today's debt equals tomorrow's slavery Limiting your debt obligations when you're younger will mean having more control over your personal finances later in life and avoid the financial chains that bind your freedom to choose how you live life. He who dies with the most toys is not the victor The truth is possessions don't make for a rich life, it's the experiences and people – the things that money can't buy – that make you truly wealthy. Taking responsibility makes you the master of your own destiny The truth is if you're courageous enough to cast a critical eye over your life, recognise you are where you are as a direct result of your own choices and take ownership of your decisions, you build confidence, self-esteem, and self-respect. Patience and waiting is luck is made through hard work Understand the difference between wants and needs and recognise that all the money you spend on those material items you just 'had to have' today, is less that you'll have to fund your retirement with tomorrow. Luck is made through hard work While a handful of people have lucked out by winning the lottery, truly successful people do the hard yards to reach the pinnacle of their chosen field or endeavor. You don't need millions to achieve financial freedom Financial freedom is not dependent on money itself, but on your relationship to it and the level of personal responsibility and fiscal discipline, you're prepared to exercise throughout life. Spend less than you earn…and invest the rest Aim to invest at least 10 percent of your earnings and the power of compounding will take care of the rest. And speaking of the power of compounding… Your youth won't last forever, so use it wisely Given enough time, compound interest is so effective that Albert Einstein called it the most powerful force in the universe. The bottom line Unless we teach our children good daily success habits and level the playing field, the rich will continue to get richer and the poor will continue to get poorer. So it just might pay (literally) to give them a bit of your time. The most important lesson to teach your children about money Patient people are more likely to save their pennies than seek "easy" (and expensive) credit because they are happy to wait for a new car or big screen TV. But we need to remember that this skill isn't natural for most people. Humans are wired for instant gratification. That's one of the reasons many high-income earners are not 'rich.' You'll often find the more they earn, the more they spend and they end up on a treadmill where they tend to spend more than they earn because they need to support a lifestyle that has little or no enduring value but has high fixed costs to maintain. Learning delayed gratification isn't easy but it can become a skill in your Rich Habit toolkit if you follow a few simple tips. Write down a list of money goals and put them somewhere that you can see them every day. Every time you're tempted to purchase something consider whether it's a want or a need. We all can develop the Rich Habit of delaying gratification and accepting what good things are worth waiting for. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Some of our favourite quotes from the show: "Most Australians don't teach their children anything about money, meaning, we're raising our children to be financially illiterate." –Michael Yardney "The fact is, there's no such thing as rich victims." –Michael Yardney "When it comes to a gadget or a fad, most of us just don't have self-control." –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

Overwhelm is the feeling that everything is just too much, that feeling that we will never get everything done, that there are too many things in the to-do list at the end of the day and that we don't have the time or the ability to do anything about it. Left unattended overwhelm can led to levels of negative self-talk which take us to the point of simply giving up. It can affect our emotional state and even our physical health. That's why we need to have a strategy to get on top of it. Here are six things you need to know and work on in order to overcome overwhelm. 1. It's normal. Remember that overwhelm is perfectly normal We have lots of competing interests and pressures on a day to day basis so overwhelm will happen. Knowing it's normal helps because it shows that we are not alone in the situation and that if others experience and overcome it then we can too. Once you recognize it's normal then the following five steps will help to resolve it. Here are the next five steps: 2. We have accepted that overwhelm is normal. It's normal in business and in everyday life. One thing we can do is to take a day out. If you don't think you can cope with a whole or even a half-day out then at least find something which is your "happy place" and schedule some time there. Perhaps it's a round of golf, a movie or some time with friends or family. I recently took a day out to spend with my grandchildren. The following day my thinking was far clearer, my productivity increased, I was more creative and overall happier. Whatever the day point or happy place may be for you, the trick is to schedule it. Lock it into your calendar so you can be sure it happens. There is one layer peeled. 3. Get back in touch with your "Why". It may be the Why you started your business or "Why" you have the job you have. The "why" may be your big-picture goal, your vision or it may simply be the next "reward' you are working toward. Whatever it may be, the trick here is to remind yourself of it. If you are struggling to remember your "why" ask those around you, your family, friends, team members or clients. Think about the impact that what you do has on others, the transformation that it brings to their lives and to yours. Understanding your "why" may just be the shot in the arm you need to motivate you to push on and peel another layer off that overwhelm onion. 4. Plan We all know the saying that a failure to plan is a plan to fail. Plans, in my mind, shouldn't be complicated, they should be simple and even better if you can put them on to one or two pages. Having a plan will give you the two important C's, certainty and clarity. With a plan you know exactly where you want to go and precisely how you'll get there. Taking some dedicated time out to plan will save a lot of hard work over time. You will get certainty and clarity. 5. Break things down. Any task or project which contributes to overwhelm can and should be broken down to bite-size chunks. Looking at a large project or problem as a whole only contributes to the overwhelm. breaking it into achievable pieces works to remove the overwhelm. By seeing the component parts to any project, we may also see where those parts can be completed by someone else, potentially someone who would be better and faster than us. Is that another layer of the overwhelm onion I hear hitting the floor? 6. Find some tools to help In Mastermind, we have our One Page Plan and our Sprint Planners. These are simple one-page tools that help implement the other steps in the process. The one-page plan is simple, it just makes to look at your "why" your big-picture vision, then work out what you want to achieve in the next twelve months which will fit in with that vision. Next, once you have the twelve-month goals clear, set up some projects which you can achieve in the next 90 days which once completed will step you closer to your twelve-month goals. Complete that all on one page and you have addressed the major parts of this overwhelm removal process. Following these six steps will help you peel the necessary layers from your overwhelm and help you to move forward with clarity, energy, creativity and most importantly, confidence. Happy peeling! Links and Resources: Metropole's Business Accelerator Mastermind Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Some of our favourite quotes from the show: "Today's demanding work environment and technology keeps you hooked into work twenty-four seven." – Michael Yardney "We all know our mental health affects our physical health, doesn't it?" – Michael Yardney "If you want to get above and beyond everybody else, if you want your business to grow further, if you want to be more successful in your career, you actually are going to have to do more than others." –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 o

In today's podcast, we're going to talk about property management, and more specifically what a property manager does. There will be some things that surprise you. We'll also talk about how to select a property manager, because if you're going to build a business, a property business on the side, you've got to have one that doesn't have too many working parts and that works for you even when you're not there. And that means finding a property manager who cares as much about your property as you do. Then, in my mindset moment, I'll share a lesson from my mentor, Jim Rohn, about 4 important emotions that can turn your life around. What do property managers actually do? Property managers: Collect rent Keep vacancies to a minimum Check references Advise landlords on tenant selection Ensure compliance with legislation Ensure leases are legally enforceable Have and apply market knowledge Choose tenants with whom they can have a long-lasting relationship Questions to ask a potential property manager: Pretend to be a tenant and arrange a mystery shop experience. See how they treat tenants. This is important because tenants are just as important as customers as landlords. Does the agency have a dedicated property management department? Is there a director or owner involved in day-to-day property management? How long has the property manager been in the industry? What are the specifics of the property manager's experience? How long have they been in the industry? Is their presentation professional? Who is in the office handling inquiries and concerns from tenants/landlords/investors while the property manager is out in the field? Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Why not speak with the team at Metropole Property Strategists and get their independent property advice -click here Leanne Jopson – national director Metropole Property Management For more details and the full show notes go the show's webpage: How to find a property manager who cares as much about your property as you do Some of our favourite quotes from the show: "I know that at Metropole what we do is we have systems looking after the property and people looking after the systems." – Michael Yardney "If you've got a multimillion-dollar business, don't take shortcuts with the people who are part of your team, including your property manager." – Michael Yardney "The day you allow the emotions to fuel your desire, that's the day your life's going to turn 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

If you're a property investor, I've got a warning for you. Some high-rise buildings are going to become the slums of the future. As a property investor, it's important to recognize that you've got to own the sort of property that's going to outperform the averages, and many properties in the future are going to underperform because they have a shadow hanging over them. That's the one million apartments build over the last decade or so. In today's episode, I'm going to explain a little more about what I mean and what you can do about it. I'm also going to have a chat with Brett Warren, director of Metropole Properties Brisbane about the research you should do to help understand what's happening on the ground in property markets. In fact, it's the research that we do and he's going to explain how we do it and what you should look for. Then, in my mindset moment, I'm going to tell you a story about a Cherokee Indian. This story has an interesting message that will help you gain some clarity for your future. Warning – some high-rise apartment buildings will become the slums of the future. The way we live in Australia has changed. We're trading backyards for balconies and courtyards and this has resulted in around one in five Australians living in an apartment today - up from one in seven in the 1990's. The problem is not all apartments are the same. Some will make great investments increasing substantially in value over the long term, but many of the high-rise towers built in the last fifteen years will continue to underperform with poor, if any, capital growth in the foreseeable future. This sector of the property market has lost the trust of the buying public and confidence will take quite some time to restore as various stakeholders including state and local governments as well as the construction industry including building surveyors and certifiers scramble to shore up building sector. You see…there tend to be three major types of building issues faces by apartment owners: Structural defects – These are the ones that grab the headlines but, in reality, major structural issues only relate to a small number of buildings. Fire issues – These often relate to inferior cladding used during construction. Cladding audits are ongoing, but so far 629 affected buildings have been identified in Victoria alone. Water issues – These are very common and occur to some extent in almost every new building – things like leaking balconies, showers and roofs. While these are a nuisance and can be expensive, they can usually be rectified. Fact is, the buildings with major problems requiring mass evacuation are the outliers, but for those involved their losses will be significant as they will have hefty repair bills and have no real market for the sale of their apartment in buildings that could well become the slums of the future. But that's not all folks… The standard of high-rise apartment tower construction is a vivid example of how in today's disposable society, the quality of many things is falling in the pursuit of bigger profit margins. This in stark contrast to the quality of the 100-year-old buildings that stand proudly next to them in our CBD's. They were craftsman built with durable materials and have stood the test of time and multiple generations. They still stand strong today – a far cry from the buildings being thrown up in the modern era. But I believe recent round of disclosures about structural problems in the apartment towers built over the last decade or two for the investor market is just the tip of the iceberg. It's been suggested the high-profile stories that have hit the media are just the tip of the iceberg and many more buildings with structural problems – some big, some small – will come to light over the next few years. Some developers will have the funds to repair their buildings, but others won't. And insurance often won't come to the rescue of the unfortunate owners as sometimes it will be difficult to know where to lay the blame: Councils who have encouraged higher density development and at times been willing to negotiate building guidelines in order to promote development. Developers who have chosen the cheapest builder to increase profit margins Builders who been prepared to compromise to win the deal. Contractors who may have been willing to cut corners like import cladding from overseas because it was cheaper. Certifiers who approved the standard of construction. And even if when the issues come to light, they are repaired, what rational purchaser is going to want to buy into these buildings? The bottom line: Demand for apartments is set to accelerate from a more diverse buyer profile as apartment living emerges as a preferred lifestyle for many, from the younger generation leaving home to the older generation wanting to downsize The peak of the current building cycle has now been reached and it has now emerged that many of the buildings built during the last construction boom will have a shad

Should you worry about the upcoming recession? If you believe the media, then, of course, you should. But it's important to get both sides of the story. Today, in my discussion with Pete Wargent, you'll hear about some of the negatives affecting our economy as well as the many positives that the media tends to forget. We'll give you a balanced assessment of what's likely to be ahead. This show is going to be valuable for property investors, future homeowners, and businesspeople as well. Then, in my mindset moment, I'll explain to you that you've won the lottery. Listen in to find out what I mean. Some of the topics I discuss with Pete Wargent: Reported GDP is really historical information – it tells us what's gone on before Credit is the lifeblood of the economy, so if you limit people's ability to borrow, you slow the economy, as happened in the recent credit squeeze Nobody knows for sure if we'll get a recession, but if you look at the probabilities and what markets are saying, it's pretty unlikely Australia's currency and low debt tends to help rebalance the economy quickly Construction is a big hole in the economy that needs to be filled International uncertainties may constrain growth, but there are always uncertainties to consider Interest rates have been cut and tax rates have also been cut. So far these incentives have not had a big effect on the economy, but they may with time Population growth fuels new construction and adds to demand in the economy. Immigration also helps as it slows the aging of the population and reduces the dependency ratio Business investment is improving Recession can often be a confidence issue, enhanced by scaremongering in the media Why not allow Metropole to help you secure your financial future – here's 3 ways we can help Strategic property advice. - Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more Buyer's agency - We'll help you find your next home or an investment-grade property. Click here to learn how we can help you. Wealth Advisory - We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you. Links and Resources: Michael Yardney Why not speak with the team at Metropole Property Strategists and get their independent property advice -click here Get more details about Michael Yardney's Property Renovations and Development workshop Pete Wargent - Next Level Wealth Read the full show notes plus more at this episodes page: Should you be worried about the upcoming recession? With Pete Wargent Some of our favourite quotes from the show: "Economists have actually got a pretty poor track record of predicting recessions" – Michael Yardney "Large parts of the retail sector are suffering from the trend of online purchasing and… the lack of consumer spending." – Michael Yardney "I've read that the probability of even existing comes out to one in something followed by 2 million zeroes." – 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 content of today's show has been designed by you, because we're going to answer your finance questions. Today's conversation with Dan Gold will be helpful for both beginning and experienced property investors. I've also thrown in my own question, and I think you'll enjoy hearing the answer: - Is it really true that you can get a finance approval in as little as two days? You'll find out today. Some of the questions we discuss today: Will buying higher-yielding properties in regional Australia increase borrowing capacity? And will that allow the buyer to purchase more properties? In the current lending environment, high-yielding residential properties do not have a material impact on borrowing capacity. What factors are important to look at other than interest rates when looking for a loan for an investment property? Focus on finding a lender that can actually meet your requirements and objectives and be selective with the person or bank that's going to be taking you through the process. Are interest-only loans back? For the right borrower, interest-only loans never really went away. How do you release the equity from your property portfolio? Do a review of your property portfolio to get a sense of how much equity you have. The banks will allow you to borrow up to 80% against any one asset, so if you're only leveraged up to 50%, you may be able to release that remaining 30% to fund deposit and purchase costs on your next property. Can you get a loan approved in a couple of days? There are lenders in the current marketplace that can turn loan applications around quickly. To get a loan approved quickly, you need to: Deal with a bank that's capable of doing fast loans Make sure that you have 100% of your required documentation upfront Discuss any areas of complexity up front before starting your application Links and Resources: Michael Yardney Why not speak with the team at Metropole Property Strategists and get their independent property advice -click here Get more details about Michael Yardney's Property Renovations and Development workshop Dan Gold – Long Property Read the full show notes at our web page: All your finance questions answered Podcast Some of our favourite quotes from the show: "In my mind, residential real estate's a high growth, relatively lower-yield investment." – Michael Yardney "While interest rates are interesting, they're probably not the most important factor at all." – Michael Yardney "People sort of forget that that's their asset that they can borrow against, so yes, see what your loan-to-value ratios are, also see are your current loans appropriate for today's marketplace and can you maybe save a little bit in interest by just asking."— Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Australia's housing markets have clearly turned the corner. The housing market recovery in our two biggest cities, Melbourne and Sydney, gained pace with property prices increasing over the last month. Buyers are back making plans, looking at properties and approaching their lenders for finance. They are buoyed by falling interest rates and the prospect of another rate cut early next year and a generally positive media. Sellers are slowly returning to the market encouraged by rising prices. This now marks the fourth consecutive month of price gains in Melbourne and Sydney, which was where the downturn hit the hardest over the last couple of years. As a result, auction clearance rates are up, asking prices are up, property values are increasing and some property commentators are even forecasting double digit capital growth next year. We called the market bottom a few months ago in our regular Property lnsiders video chats, so today we discuss what's going on in the world of property at the moment Another interesting month overseas There is continued uncertainty regarding the global economic outlook. US Trade Wars – these are continuing, however with the next round of Presidential elections in 2020, Trump is going to want to go into that campaign with strong jobs growth and the US economy in good shape. So it's likely Trump is going to look for a resolution to this issue sooner rather than later. The Brexit saga: the uncertainty about this continues. Interest rates around the world are easing to try and stimulate economic growth. This was by the Federal Reserve in the USA reducing interest rates. Australia's Economic Data Australia's GDP growth for the June quarter was reported as only 0.5%, bringing the annual rate of growth down to 1.4% from 1.7% in the March quarter - the slowest growth rate that we've seen in the economy for nearly 10 years. But remember this is a lagging indicator and really reflects what happened before and around the time of the Federal election and clearly things have changed considerably since then. In a well publicised speech RBA Governor Lowe explained he was looking for further progress towards full employment and to achieve the inflation target over time and explained our economy is gently turning around. We're still creating plenty of jobs. 34,700 new jobs created for August. And we have been creating around 26,400 jobs every month since the start of this year. However, we're seeing a record high level participation rate of 66.2% causing our unemployment rate to lift from 5.2% to 5.3% percent. Dwelling approvals have fallen for 21 months in a row with the latest figures (being for August) showing approvals are now at their lowest level since January 2013, being down 29% year-on-year and are below the estimated level of underlying requirements. This is particularly evident in the high rise segment of the market as both developers and investors pull-back from the market. Interest rates fell to historic lows. The recent evidence of a strong rebound in Sydney and Melbourne property values wasn't enough to stave off a rate cut. In what was a well telegraphed move, the RBA cut the official interest rate to 0.75% on October 1st citing weaker than expected growth in the domestic economy and global uncertainty. The RBA made the following pertinent comments in their statement announcing the rate cuts: "The Board will continue to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time." The Governor's Statement certainly opens the door to even lower rates although a follow up move in November seems unlikely. Even though some lenders have already starting lowering their variable rates, it's going to take more than a rate cut or two to restimulate our economy. In my mind the government now needs to implement fiscal reforms to drive long-run growth because it's likely these rate cuts will have a smaller impact than in the past. Interest rates are already at historically low levels and banks are clearly not passing on the full rate cut. At the same time many Australians are stashing their cash and paying down debt rather than spending while businesses seem hesitant to invest due to the uncertain global economic outlook. Auction clearance rates point to higher prices ahead. Auction clearance rates in both Melbourne and Sydney kept rising over the last month continuing the post-election bounce in confidence in our property markets. The prospect of easier access to finance, falling interest rates and a tax cut has boosted confidence, driving strong auction results across Australia. It is unlikely that clearance rates will rise any further now especially as more stock comes onto the market for sale in the next few months. The rental markets Our rental markets are still relatively flat, and vacancy rates have crept up a little over the last month in Sydney and Melbourne. What's ahead for property pric

On any given day, if you ask someone if they are happy, their response will be dictated by their current state of happiness. If they are nearing, or in the midst of a happiness event, they will say they are happy. If they are recovering from, or in the midst of an unhappiness event, they will say they are unhappy. Happiness is event-driven The quantity of happiness events you have during your lifetime is the only true way to accurately measure your level of overall happiness with your life. Those who have experienced more happiness events during their life will view their life as happier overall. Those with less will view their life as less happy overall. The key to overall happiness, therefore, is to accumulate happiness events. To understand the importance of happiness events we must first dissect what causes happiness: 50% of happiness is determined by your genes 40% of happiness is determined by your activities 10% of happiness is determined by your circumstances Genes play a major role in your level of happiness. Some people are simply hardwired genetically for happiness or unhappiness. They have a happiness baseline that they were born with. But the good news is that irrespective of your genetic makeup, you can increase your level of happiness by engaging in certain activities that will make you happy and that will also change your circumstances in life. Happiness Activities That Improve Financial and Non-Financial Circumstances: Pursuing some long-term goal, big dream or major purpose in life Engaging in the daily habit of educational reading Practicing gratitude Practicing optimism Engaging in some creative pursuit like painting, writing, building, music, manufacturing, inventing, etc. Engaging in new activities Overcoming a fear Aerobic exercise Mentoring others Helping others Doing work that you love in which you can make money Solving problems Overcoming obstacles that interfere with achieving some goal or realizing some dream Living in the present – enjoying happiness events without thinking about anything else Receiving awards for something you've done Losing weight Saving money Being productive at work Building relationships with other successful people Vacation homes – 52% of the wealthy own vacation homes.This allows them to engage in more frequent weekend retreats with business associates, customers, clients, etc. Country Clubs and Golf Clubs – Many of the wealthy are members of country clubs or golf clubs.They engage in activities at these clubs with business associates, customers, clients, etc. Happiness Activities That Have No Effect on Financial Circumstances: Vacation homes – This allows them to engage in more frequent weekend retreats with family and friends Country Clubs and Golf clubs – They engage in activities at these clubs with their family and friends More unique social gatherings – Because the wealthy surround themselves with other successful people they are able to participate in more unique social gatherings More unique vacations – The wealthy are able to go on more unique vacations with family and friends More parties – Because the wealthy have more money they can have college graduation parties for their children, they can also afford to pay for weddings for their children and they can afford more parties for family and friends Happiness is activity-driven. It is not a destination. It is the culmination of frequent happiness events. The wealthy are able to engage in more happiness activities because of the wealth they accumulate in life. Links and Resources: Michael Yardney Tom Corley Metropole Get your own copy of our international best-selling book: Rich Habits Poor Habits See the full show notes at the show website: Why Wealthy People are Happier People|RICH HABITS, POOR HABITS Podcast Some of our favourite quotes from the show: "Any problem that money can solve isn't a problem." – Michael Yardney "There does seem to be something inbuilt in certain people, that they just can't see the good in things." – Michael Yardney "A lot of the poor people are going to be jealous of the rich people and not recognize that part of what they do with their money is also help other people up." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Are you enjoying the low-interest rates at the moment? They're likely to get lower over the next year or so, and remain lower for a decade or longer. But what does this mean for property investors? What are the implications for property and other asset classes? What does it mean for your returns? How should you invest differently over the coming years? These are all important questions for people who want to become successful property investors. I'll be discussing these questions with Pete Wargent in this episode. I'll also share a mindset moment about where you're going to be in ten year's time. I learned this lesson from one of my mentors, and I hope it helps you in the process of planning your future and getting the most out of your life. How does a low-interest-rate environment affect your investment strategy? The Reserve Bank has cut interest rates in 2 consecutive months – June and July to historic low rates and the money markets are factoring in two more interest rate cuts one later this year and another in the first half of 2020. And it's likely we're in for a long period of low-interest rates moving forward. So, what does this mean for property investors? It's not just Australia that has low-interest rates – why is this happening? In fact, we're catching up to the rest of the world – wherein general rates have been low since the GFC Long term fixed mortgage rates in the United States are less than 3% p.a. In the UK, rates are under 2% and even lower in Europe (circa 0.50% p.a. in France for example). In Australian this week, a 5-year fixed home loan rate fell below 3% p.a. And in Denmark the other week, one announced it would pay borrowers 0.50% p.a. to take out a mortgage! What's going to happen to interest rates? The market is predicting that the RBA will cut rates by 0.50% by mid-2020. If this turns out to be correct, Australian mortgage rates could fall even further. Many commentators have suggested that interest rates may not increase materially for a decade or longer. Will low interest rates have the desired effect? Eventually, yes. The Reserve Bank has more tools they can use such as QE, or the government can spend more money. Interest rates may need to fall pretty close to zero before inflation returns to that target 2%-3% rate. Now we're talking about the official cash rate - - home mortgage interest rates are higher – what will happen to those? The banks need to charge a margin to cover their overheads and deliver a profit to their shareholders – this margin needs to be at least 2% What does this mean for investors, especially those that borrow to invest in property? Lower holding costs for property investors – for many this will make property more affordable The negative cash flow – drain on your personal finances will be considerably lower. Less negative gearing - ow interest rates significantly reduce the negative gearing tax benefits for property investors – but negative gearing was never really a reason to invest However, some investors were investing in property with the hope of it reducing their tax liabilities. A low interest rate environment makes borrowing/leverage a sensible investment strategy Don't use your own money if you can achieve a better investment return greater than the mortgage rate Well located capital cities properties have grown on average by 7% per annum over the last 40 years – then add the rental returns and you easily get 10% total return on your property – it makes sense to borrow at these low rates to get those sort of returns, which you can improve through correct asset selection. It also makes sense to borrow to leverage into a dividend producing share portfolio - the dividends should well cover the interest cost and give you positive cash flow What will low interest costs do for property values and for rentals? Theoretically, low interest rates should push up property values. The problem will be obtaining finance In the past, cheap money has led to more speculation and asset bubbles – property and shares If interest rates are low and more people can afford properties and it becomes cheaper to own than rent, this may lead to a smaller pool of tenants and lower rents. The bottom line Correct asset selection will be critical – only own "investment grade" properties that will remain in continual strong demand by a wide range of owner-occupiers Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Pete Wargent - Next Level Wealth If you're interested in taking your property investing to the next level, join us at my annual Property Renovations and Development workshop in October. view the full show notes at the episode webpage: Investing differently in a low interest rate environment Some of our favourite quotes from the show: "The key is to look and say where am I? What could I do to make the changes to ensure that I could take more certain daily steps toward

Over the years, I've worked with thousands of investors and I've found that most fall into one of three categories. I'm going to explain what those categories are and let you work out which one you fall into. I'll also explain why one of those categories tends to be more successful than the other two. I'm also going to have a chat with Leanne Jopson, the national director of Metropole Property Management, about what you can do when a tenant doesn't pay rent. Then, in my mindset moment, I'm going to share an uncomfortable truth. What type of investor are you? There are three main types of property investor. Which category do you fall into? Passive Investor: Tend to spend little time looking for a property. Not really interested in understanding all of the ins and outs that go along with creating a property portfolio such as finance, tax laws, compounding and so forth. Rather than conducting any due diligence or consulting industry professionals for advice, they're more likely to buy one of the first properties they come across Active Investor: Puts in some degree of work in order to find a good investment prospect. Gains a basic understanding of the principles involved in property, finance, and taxation. Tend to seek professional advice with regards to the structuring of their portfolio and conduct some due diligence in the hope that they can increase the likelihood of making a viable investment purchase. Analytical Investor: Tends to run around for months, sometimes even years, examining every nook and cranny of our property markets, endlessly comparing values and sales, reading reams of material regarding real estate do's and don'ts and seeking advice from as many experts as possible before committing to anything. They like to conduct as much due diligence as possible and look for the 'ultimate' investment property. So which is better? If property investment was like many other things in life, then the more effort and energy you sink into property investing, the greater your rewards are likely to be. In other words, the passive investor would enjoy smaller gains than the active investor, while the analytical investor would come out on top as they were willing to do the hard yards. Yet, in relation to property investing this is only partially true! Many passive investors purchase their investment properties the way they would buy their home – emotionally. They tend to buy their investments near where they live, or near to where they work or close to where they want to retire or holiday – all emotional reasons. Some live to regret their investment decisions and have difficulty holding on to their investments. The active investor usually does well if he seeks advice from a team of consultants. What about the analytical investor? Let me share a story with you… I remember years ago when I was still presenting at Property Expos (they seem to be a thing of the past now) and I ran into Leonard – a successful IT Engineer. He has subscribed to my newsletter for over 5 years and when I first met him about 3 years earlier he said he was going to invest in property. When I asked him how his investments were going, he explained that he had still not made a move. Instead, he continued to research the market. Leonard was very intelligent and has a tendency to over-analyze things, hence he is still waiting for the perfect property, the perfect time or the perfect set of circumstances in which to buy. What he doesn't realize is that this will never happen. On the other hand, let's look at an example of a passive investor… Let's call him Mark – who was so naïve that he bought the first property that he could get his hands on twenty years ago for $200,000. At the time, his friends and family told Mark he was "crazy." He paid way too much for the house, it was a bad time to buy and it was a foolish thing to do. Although he may not have done all of his homework, Mark still bought in a popular inner Melbourne suburb and guess what? The value of that home is now in the order of $800,000, and if he was half as smart, Mark would have borrowed against its increasing equity to allow him to buy more properties. The lesson from all this is...It really doesn't matter too much if you're a passive, active or analytical investor. As long as you are taking action and are in the market. It doesn't really matter if you're not into running around examining every aspect of the property market. Or maybe you are and that's not such a bad thing – as long as you don't get so absorbed by the process of learning about property that you forget to actually use that knowledge and buy something! In other words, if you have been thinking about investing in property, now may be the right time for you to act! It's the best counter-cyclical opportunity in a decade. You may not have another opportunity like this for another decade or two. But you can't just buy any property as Mark did. To ensure I buy a property that will outperform the market averages I use

This podcast is about more success in your life, whether it's success in property investment, money, or any other area of your life. We can learn from other people's success, but we can also learn from their failures, and today we're going to learn about some famous last words. Ahmad Imam and I are going to chat about what people were thinking about when they made those blunders, and you'll learn about what not to do so that you can be more successful. I'm also going to chat with property researcher John Lindeman and talk about some property "pumping and dumping" schemes you should watch out for. Some famous last words all property investors need to know "My financial planner called, and he said he has a special opportunity." – The main reason they have a special opportunity is that they stand to make a commission on it. "I thought I was getting guaranteed high returns." – Project marketers don't need to be licensed, so there's no regulation or restriction on what these marketers can promise, and not much you can do if they don't come through. "I want to get in now before I miss more of the upside." – You shouldn't allow emotion to drive you, because that creates booms, downturns, and busts. "We've come up with a new way to mitigate risks." – The biggest risk lies with the investor, and you can only mitigate that with time, knowledge, and a good team. "Well, it looked like easy money" – There's no real easy money. If it feels easy now, it's probably going to be harder in the end. "There's very little downside risk." – owning the sort of properties that don't fluctuate much in value is the best way to minimize risk. "Analysts are predicting high growth for years to come." – The problem with this is that most property forecasts are wrong. "How can you argue with a booming area that's been growing for 10 years?" – all markets move in cycles. An area that's been booming for 10 years is an area that's 10 years closer to the end of its boom. "There's too much uncertainty in the world to be investing right now." – If you wait for everything to be perfect, you'll be waiting forever, and in the meantime, you'll miss out on opportunities. "I'm going to wait on the sidelines until there's more clarity." – This is a good way to miss the best opportunities. "My brother-in-law has made a killing in this suburb. It's time I jump in." – Taking risks that you don't understand based on the advice of well-meaning but poor advice can go very wrong. Be careful who you listen to. "It's different this time." -- Risk will never be eliminated, growth will never be limitless, and markets are never fully efficient. When it comes to big, basic principles of investing, it's never different this time. Watch out for property pumping and dumping schemes Faced with the prospect of little price growth on the horizon, property investors are starting to see innovative get rich quick schemes being promoted which offer huge returns. It has always been true that if the property market can't generate a return for investors from market driven growth, then investors can make some growth themselves. We have traditionally done this by improving the value of our investments through cosmetic or structural renovation or even developments. But some new investment alternatives have recently emerged, bringing us glitzy promises of high returns from property investment without the need to outlay any significant cash up front. The risk seems low, the opportunity to participate is high and many of us are sucked in, usually at free so called "investment" seminars. One clever land banking scheme offers you an easy way to get into the property market with one low upfront cost and the promise of eventual riches. The promoter sells you an option to buy land which is slated for future development, showing you the concept plan and glossy "artist's impressions" of the finished project. All it takes is one affordable fee and no repayments. Then years later, when the land is subdivided, you can exercise your option and sell at a huge profit. You can even participate in the property market without any upfront cost at all, by searching for and finding property owners who are willing to enter into an options agreement with your mentor. Your mentor signs and pays for the agreement, which gives them the option of buying the property at an agreed price and future time from the current owner. Then by agreement with your mentor, you will be handed a percentage of the profit. There are also adverse possession schemes using what is known as "squatters rights" where you search for and find long vacant or abandoned properties for your mentor who then improves and rents them out, taking title to the property when the legal waiting period has expired. By agreement with your mentor, you will then split the profit from the sale of the property. These sorts of schemes pump you full of confidence and then dump you when they fail. For example, if the land banking property is never develo

One of the most helpful things you can do to help build your business or professional practice is to have a business coach. Today I'm speaking with the founder of Business Accelerator Mastermind, Mark Creedon. We talk about the things that the entrepreneurs he has coached have done, which have made him cringe, in order to help you avoid these pitfalls when you work with a business coach: Pitfall 1. "I'm too busy…" When you properly delegate tasks and invest time with a coach, you can actually make even more time for yourself and focus on more important tasks. Pitfall 2. You Lie to Yourself (And Your Coach) When you lie to your coach, you're actually lying to yourself. Pitfall 3. You Don't Think We "Get" It Regardless of the industry, most businesses have the same issues. A lot of successful business people are "almost there" – they need a few tweaks rather than big changes and what they are missing is someone to bounce ideas off of. Pitfall 4. You Don't Know How Much We Care What motivates Mark is seeing his clients achieve their goals. Business can be tough and lonely but everyone in your mastermind group cares about your goals as well. Why not join Business Accelerator Mastermind? Let Mark and his team help you build a business not a job? Do you know you're ready for more, but tired of wondering how you can grow your business? Are you looking to cure your frustrations and isolation with a Real Community? Are you tired of feeling like you're doomed to playing small? Are you tired of spinning your wheels and getting no traction? This community is for you if you're a business person, 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, improving your business acumen, and removing your limiting beliefs around money and success. Find out more at Metropole's Business Accelerator Mastermind Links and Resources: Metropole's Business Accelerator Mastermind Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Read the full show notes plus more at the Podcast webpage: 4 Things Entrepreneurs Do That Make Business Coaches Cringe | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "And if only you had the courage to say no to other people's urgencies, and to the seductive call of your inbox, you could accomplish so much more." – Mark Creedon "We have all our clients prepare a strategy plan each quarter (which we also do for ourselves) and then we review them together during our sessions." – Mark Creedon "Hitting a roadblock is a normal part of growing a business. You have to push through it. Take it as a challenge and maintain your optimism." – Mark Creedon "Most people know what they want to achieve in business, but they haven't dug deep enough. Having a game plan, having a list of dot points, having a list of things you want to achieve; that alone isn't a strategy." – Michael Yardney "Even [entrepreneurs] should feel comfortable talking about the things that haven't worked out." – Michael Yardney "Outside lives infect how [entrepreneurs] run their business." – Michael Yardney "On your own, you can probably run faster, but in a group, you can run a lot further." – 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've noticed a trend recently that more and more investors are looking to get involved in property development. They want to "manufacture" some capital growth because the market has been a little flat. So that's what we're going to talk about in today's episode – how to get started in property development But today's show is going to focus on some real-world advice. There are too many enthusiastic but inexperienced amateurs giving what is probably well-intentioned, but ultimately poor property development advice. And even if you're not ready to jump into property development yet yourself, listen in anyway, because one day you may want to get involved in property development. During Our Conversation About Starting in Property Development, We Discussed Many developers start with renovations to mitigate risk and learn the basics The concept of Land Banking Waiting for the right time in the property cycle Buying the worst house on the best street Becoming an armchair developer by using Metropole's development project management service The risks involved in property development The benefits of property development The equity that you need to put in to get started on a development project Servicing your debt Coming up with a finance strategy Why developing townhouses is a good strategy Characteristics of a good property developer The sequences that developers follow Who should manage the builder? What makes different developments different, even when they look similar Choosing a property that's suitable for development Avoiding overpayment for a development property Buying at the right time in the cycle Knowing which costs to look out for Changes in laws and regulations that may affect your property development Delays that can occur during development Links and Resources: Michael Yardney Join us at this year's Property Renovations and Development Workshop – click here for more details and to reserve your place Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Bryce Yardney - Metropole Projects For the complete show notes plus more go to the episode web page: Here's the truth about getting started in property development Some of our favourite quotes from the show: "Buying the worst house on the best street, that's always been a really good strategy anyway." –Michael Yardney "Property development can be rewarding, but it definitely can be risky. But that doesn't mean you shouldn't consider getting involved in property development, it just means you have to go in with your eyes wide open." – Michael Yardney "You can't allow the builder to manage himself; somebody has to direct 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

You're probably listening to this podcast because you're interested in property investment. And I bet you want to become a better investor. So, today, I'm going to teach you how to become a successful property investor. And it's probably not what you think. In fact, it's not what most people do, or more people would be successful. And then, with Ken Raiss, we're going to have a chat about estate planning. That's not a very sexy topic, but it is a really important one to set yourself up right to grow, protect, and pass on your wealth to the people you want to pass it on to and not to those who you don't want to pass it on to. And it's not just the tax man, it's the in-laws, the outlaws, and the other people as well. So, Ken's got some great tips for estate planning, and that's relevant for you at whatever age you are along your journey, because the sooner you get it right, the more protected you'll be. Then, in my mindset moment, I'm going to discuss some important financial mindsets that will help you get to the next level. Here's what you need to do to become a successful investor Don't wait too long – Everything doesn't have to be perfect for you to get started in property investing. The longer you wait to get started before investing, the longer it's going to take for you to build the money, the success, and the freedom you want. Don't let fear stop you – Fear stops most of us from getting what we want. Successful investors learn to harness their fears and take positive action instead of letting fear stop them. Don't try to wait till you know everything – The more you learn, the more you learn you don't know. The key is to recognize that you'll never know it all, but you do know enough to get started. Focus on passive income, not linear income – Not all income is created equal. If you're not making money while you sleep, you'll never become rich. Use money-making systems – Money-making systems take the emotion out of your investment decisions and makes the results more reproducible. Be patient – Successful property investing is a long-term affair, not a get-rich quick scheme. Estate planning with Ken Raiss Without a will, the government will dictate who will get your estate. And the way most estates are set up, a person's spouse or life partner won't necessarily get all of it. Just taking into account life insurance and the family home, there are significant sums of money involved in an estate that can either help your loved ones after your death, or cause headaches when your loved ones don't get what they think they should get. People often assume that superannuation or other funds, like money in trusts, that aren't in their own names will just get passed on to their kids. But that's not necessarily true. A will only covers assets that are in your name. When it comes to estate planning you need to talk to someone who understands asset protection, estate planning, taxation, superannuation, and structures like trusts. Having an incorrect will can leave your loved ones and assets exposed. A traditional will move assets from you on your death to your children, for example. But if your children get sued or end up in a family law court dispute, those assets could be loss. You also lose the flexibility of distributing income or capital gains to reduce the overall family tax liability. There's also a "minus tax" that applies a 66% tax to children under 18 who are receiving income or capital gains. You can create a will that as part of it has a trust that eliminates a lot of the potential problems with a traditional will. This is called a Testamentary Trust You also need to consider things like power of attorney, medical power of attorney, guardianship agreements, and superannuation when you're thinking about estate planning. The time to think about estate planning is when you're not ill or emotional and when you have time to sit and plan with a wealth strategist. You should review and revise your estate plan after any big life changes, wealth changes, or business changes. And even without those major changes, it's a good idea to revisit your plan every two to three years, just to make sure that there's nothing you need to change. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Ken Raiss – Metropole Wealth Advisory Organise a time to speak with Ken by clicking here : www.Wealth.Metropole.com.au Some of our favourite quotes from the show: "Over the years, I've come to the conclusion that if you do what most successful investors do, you get to become one of them. And if you don't, you won't." – Michael Yardney "One thing's for certain: you need to drop the wage mindset and think like a businessperson or entrepreneur." – Michael Yardney "The only true failure in life is never letting yourself make a mistake." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new pe

Well it's Spring– traditionally a time when there are more home buyers and sellers in the market. But what's going to happen to our property markets this year? Are sellers going to return? Are the low interest rates going to bring more buyers back? Are banks going to become more friendly? If you're a home owner or property investor you'll also want to know what's likely to happen to the value of your property, so to help you become better informed let's hear the thoughts of Australia's leading housing economist Dr. Andrew Wilson, give us his thoughts on what's ahead. World economic environment More volatile than at the beginning of the year China US trade war USA – Iran issues The Fed cut interest rates – not worried about US recession – taking insurance Australia's Economy Miracle election APRA loosening their grip Tax cuts 2 rate cuts (June July) and 2 more likely (Nov and Feb) High underemployment – rising participation rate – keeping wages growth low 13.5 percent unemployed or underemployed – little wonder our wages growth is slow Businesses having a tough time – esp. retail – confidence poor What is the likely impact of the rate cuts on our property market? More confidence In the past these type of auction clearance rates have meant double digit capital growth – unlikely to be the same this time Banks a lot tougher in their lending practices Still a lot of new apartment stock to hit the market – particularly Melbourne and Sydney The spectre or rising unemployment – esp in the construction and retail industries Low single digit capital growth next year. Auction clearance rates Running in the 40's at the end of last year – now 70's Factors affecting our property market moving forward Finance – cost and availability Consumer confidence Wealth effect – many in Sydney and Melbourne saw the value of their most valuable asset – their home drop and this made them curb their spending Rate cuts and tax cuts may compensate a little for this Supply and demand What's ahead for the Spring Selling Season? Traditionally a period of higher activity In Melbourne the best performing locations will include the eastern middle ring suburbs In Sydney the inner east, Lower North Shore, inner West and Northern Beaches will perform strongly In Brisbane well located properties close to transport and within 5 – 7 km of the CBD should outperform Well located Adelaide properties should keep growing next year Perth will continue to have flat or falling property prices for some time yet. Links and Resources: Guests: Dr. Andrew Wilson – My Housing Market Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us in October for our annual Property Renovations and Development Workshop For complete show notes plus more visit the podcast page: Is the property boom coming back? | Property Insiders Spring market update with Dr. Andrew Wilson PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Each day a tree will grow a little more. It's impossible to see the changes caused by the growth on a day to day basis. But, if you were to fast forward ten years and compare pictures of the old tree to the new tree, the change would be obvious and significant. Self-made millionaires are really no different than trees. Each day, they do small things that inch them closer and closer to success. And that's what I discuss in today's Rich Habits, Poor Habits Podcast with Tom Corley Tom explains: If you were to ask my group of millionaires how they got so rich, here is what they would say: I did the following things, every day, that enabled me to grow into the person I needed to be in order to acquire the wealth I now possess: I read to learn every day for 30 minutes or more. I kept in constant touch with certain influencers, certain important, success-minded people, and I built strong relationships with them over the past ten years. Eventually, those influencers helped open doors for me during my journey towards success. I honed and improved my skills every day. I deliberately practiced those skills every day. I also sought feedback from others who watched me perform my skills. I listened to and followed the advice of mentors who helped me during the pursuit of my dream and my goals. I exercised aerobically every day for 30 minutes so I could keep my body and brain strong. My strong body enabled me to work long hours. My strong mind enabled me to find creative solutions to problems and overcome numerous obstacles. I ate healthy every day in order to nourish my body and my brain, which helped my body and brain function at a higher level. When I encountered any problems or obstacles that stopped me in my tracks, I focused like a laser to solve those problems and overcome those obstacles. Oftentimes, this need to focus required that I sacrifice time with my family and friends. I worked hard every day to maintain a positive mental outlook. Especially when things were not going my way. I was able to do this because I knew exactly where I was going. I had a clear vision of my destination and that destination kept me focused on doing the work I needed to do in order to reach my destination. I spent less than I earned and then invested my savings prudently. Because I had savings, I was able to take advantage of opportunities that came along during my climb up the mountain of success. I always did my homework before taking any risk. I knew every conceivable outcome and had a plan in place to deal with every conceivable scenario, including worst case scenarios. I focused like a laser on a specific goal every day until I achieved that goal. Then I set another goal and pursued that goal. Eventually, I achieved all of the goals that helped me realize each one of my dreams. I always sought to exceed the expectations of everyone I did business with. This helped build confidence and trust and this generated more business and more revenue. I controlled my emotions and tried to remain on an even keel when dealing with others. No one wants to do business with someone who is not in control of their emotions. As a result, more people wanted to do business with me. I was careful how I spoke to others. I refused to curse or use language that offended anyone because I didn't want to damage any valuable relationships I had devoted many years to building. I treated everyone with the respect they deserved. Those that treated me poorly, I refused to do business with. Those that treated me with the respect I deserved, I did more business with. I limited my exposure to toxic, negative people. They just drag you down and infect you with their negativity. My positive outlook helped keep me focused on seeking and finding solutions to my problems. Positivity made me a problems-solver. Negativity made me a problems-finder. The sad truth is that most people are looking for a speeding train they can ride up the mountain of success. When people say they want to know the secrets to success, most really only want to know the short-cuts to success. They want some world-shattering, aha nugget of information that will guarantee them success in a very short period of time. They most definitely don't want to listen to a boring list of daily habits. The truth is, the secrets to success are the little boring things you do every day, that nudge you inch by inch, up the long, steep mountain of success. Consistency in doing those little things, keeps you growing and moving forward in the realization of your dreams and achievement of your goals. The little daily consistent things you must do to become successful are not exciting "secrets". They are boring habits. But they are boring habits that guarantee success. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits See the full show notes plus more here: Millionaires share their boring secrets of success | RICH HABITS, POOR HABITS Podcast Some of our favourite quotes from the show: "If you do

Today's show's going to be a little different. I've asked Ahmad Imam, Director of Metropole in Sydney, to share with us his top ten videos, some of which have gone viral on LinkedIn. Ahmad is prolific on social media and has tens of thousands of followers. His short videos contain some great tips on properties and finance. I'm also going to read you a poem - something a little different in my mindset moment. Ahmad's Top 10 Videos Are you too old to invest in real estate? It takes a minimum of 10-15 years to achieve a level of financial independence through property. So, let me break it down: If you're starting to invest in your 20s - You have all the time in the world. If you're starting to invest in your 30s - You have plenty of time. If you're starting to invest g in your 40s - You still have enough time. If you're starting to invest in your 50s - You have to start NOW!! If you're starting to invest in your 60s - Too late What is your biggest asset? One question I always ask my clients is "What is your biggest asset?" And the answer they always give is either: ▪️ Their Home ▪️ Or their investment Portfolio ▪️ Or their Car And those answers are wrong. Your biggest asset is actually your ability to generate income Negotiation Tip – Play Dumb When negotiating, playing dumb is a smart thing to do. ▪️ Do not act like an expert ▪️ Ask a lot of questions ▪️ Confess ignorance or confusion ▪️ Ask for guidance and advice ▪️ Channel your inner Columbo Your goal is to gather as much information as you can and get a more detailed understanding of the other person's situation, goals and restrictions. Now you're ready to negotiate! 3 things you need to be a successful investor Property investment is not a get rich quick scheme and those who have been successful in property investment work with 3 core fundamentals: Leverage – using other people's money (the banks) to help build an asset base. Compounding – focusing on high growth assets that grow faster the longer you leave them. Time – the more time you have the more compounding can occur. Don't reinvent the wheel. Keep it simple! How to double the value of your property? You can't just buy any property and expect it's going to double in value in 7-10 years In fact, most do not Only 1-2% of properties on the market are what I would classify as investment grade. Enter the Rule of 72. Negotiation Tip – Always be willing to walk away If you were to ask me what is your No.1 tip for negotiation? I would say, without hesitation: ALWAYS BE WILLING TO WALK AWAY! Negotiation Tip – Be assertive Don't be afraid to ask for what you want. Power negotiators are assertive and challenge everything - they know that everything is negotiable. Please Note: There is a big difference between being assertive and being aggressive. Negotiation Tip – Shut Up & Listen Most people are so busy trying to ensure you hear what they have to say, that they forget to listen A Power Negotiator is like a detective. They will ask you a probing question and then they will sit back and listen. And allow you to tell them everything that they need to know Focus on the 70/30 rule. Listen 70% of the time and talk 30% of the time. The biggest lie in property? I must admit... It always makes me chuckle when I hear someone use the term 'The Australian property market', or 'The Sydney property market'. It also gets on my nerves. Why? Because there is no such thing as 'one' property market. Fact!! Negotiation Tip – Don't be in a hurry. Many of us either have a lack of patience... or we are so uncomfortable with a negotiation that we just want to get it over and done with. That won't lead to a good outcome If you're in a rush, you'll make mistakes and you'll also leave money on the table Show you're not in a hurry and the other negotiator will likely give you an incentive to say YES The more patient you are...the better deal you are likely to get. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Ahmad Imam – Metropole Property Strategists Sydney Some of our favourite quotes from the show: "Interestingly, when you retire, the majority of your assets are not going to be money that you've saved, it's not going to be your superannuation, it's going to be the tax-free capital growth that you get out of the assets." – Michael Yardney "Past performance doesn't always equate to future performance." – Michael Yardney "You can't take money with you when you leave, but I guess you must have it, just to know for sure." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Property investment is risky. But the risk isn't what you think. It's not what most investors consider when they get involved in property investing. What most people think about risk is wrong, and what most people are being taught about risk is wrong. I'm going to share with you some ideas that will make you a better, safer investor when you understand where the risk really lies. Then I'm going to have a chat with Pete Wargent about three important considerations that will be affecting the value of property over the next decade – some things you may not have thought about. In my mindset moment, I'm going to share a lesson that I learned from one of my mentors that changed my life. Here's where the real risk is in property investing Primary factors that determine the degree of risk associated with investment: Expertise – Your experience and network of contacts can be your biggest advantage or your biggest risk factor. Control – The more control you have over your investment, the lower your risk. Transparency – The more you know, the lower your risk. Liquidity – The greater the degree of liquidity, the lower your risk. Returns – You should be able to get returns from your property in multiple ways: cash flow, capital returns, appreciation, and tax benefits. The more secure your returns, the lower the risk. Is Your Principal At Risk? – An initial cash investment (your principal) in a bank term deposit is considered very secure, whereas if you buy shares it's possible for the company to fail and the shares to be worthless. Personal Liability – The more you are personally liable, the higher the risk to the investment. Market Risk – Consider what impact general economic changes to that marketplace could have on your investment. Risk Spectrum – Is it the right property, in the right suburb, at the right price and at the right time in the cycle? When assessing risk, most investors only look at the last two factors – the market and specific investment risk. They rarely focus on the other factors, which in many ways are more significant. 3 important considerations for property in the next decade In my chat with Pete Wargent we discuss: The cost of land – Not all land is created equal, and you want to own the kind of land that is more valuable. The cost of construction – Building costs increase because you need to use today's materials, prices, and keep up with the costs of labor. The cost of money – The cost of money isn't going to get much cheaper over the next decade or two. You want to make sure that you make a return that beats inflation. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Pete Wargent Some of our favourite quotes from the show: "You, the investor, are the biggest risk, the biggest variable of all." – Michael Yardney "The first major lesson in life is to learn how to handle the winters." –Michael Yardney "The bottom line is, if you can change yourself, you can change your life." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

It seems that it's to make predictions for the property market over the next couple of years. The predictions have grown more positive over the past few months, and I agree with that. But I don't agree with some that are suggesting that we're going to get a property boom. In particular, one prediction is that the Brisbane property market is going to increase by 20% over the next few years. Is this possible? That's the discussion we're going to have today with Brett Warren. This is the audio track of our masterclass video that recently ran. Even though I own the Metropole Brisbane office, you're probably going to be surprised that I disagree that Brisbane is going to do as well as some people predict. Having said that, we are going to give you some indication of what's going to be ahead in the Brisbane property market, how to outperform the Brisbane property market, and how you possibly can get that sort of growth. What to know about the Brisbane property market Will Brisbane property markets really go up by 20% over the next few years? Not in most areas. However, if you select the right properties in the right locations, you give yourself the best possible chance of hitting that target. Over the past five years, Brisbane has performed well below Sydney and Melbourne. There has been a growth of about 7% when you combine houses and apartments. When you break it down, houses performed better than that, while apartments were affected by the oversupply. oversupply. Brisbane differs from other capital cities in that it lacks the same urban sprawl as other capitals. Jobs are located in the heart of Brisbane, so that's where to expect the most growth. Brisbane is in for a surge in property values because there are more jobs being created and both interstate and overseas migration are picking up. People will want to live close to their jobs. When considering property in Brisbane, it's important to look for what's always worked. Owner-occupiers drive the markets, so think about what they look for. The most in-demand suburbs have several things in common, including: Jobs Good schools Great lifestyle precincts Access to public transportation. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Brett Warren - Metropole Properties Brisbane Some of our favourite quotes from the show: "If anyone can just buy a property in Brisbane, go away on holidays for three years and come back and be much richer, that's the setting for the next bust again, isn't it?" – Michael Yardney "There are always people who try to chase the next hot spot, the next trend, that's not what we recommend, that's not what we do." – Michael Yardney "The rich don't commute. They don't want to commute far, so they're going to want to live in certain locations." – 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 an entrepreneur? A business owner? Planning to get into business? And if you're a property investor, you really should treat it as a business. Today we're going to discuss what Mark Creedon has learned as a business coach about what separates very successful entrepreneurs from people who call themselves entrepreneurs, but really aren't. The 6 Entrepreneurial Personality Traits Self-Motivation One of the most important traits of entrepreneurs is self-motivation. When you want to succeed, you need to be able to push yourself. Entrepreneurs know how to communicate their dream and inspire others to join them on their journey to achieving it. Optimism When you're just starting out, it can seem like getting your business off the ground will never happen. But entrepreneurs don't think like that. They are optimistic about the future and are always looking ahead. To be a successful entrepreneur, you must be goal-oriented. But it's not enough to just set goals. You must make a plan and do everything you can to reach those goals. Everything you do must have a purpose. Take Risks Successful entrepreneurs know that sometimes it's important to take risks. Playing it safe almost never leads to success as a business owner. It's not about taking just any risk, though. Understanding calculated risks that are more likely to pay off is an important part of being an entrepreneur. You'll need to be willing to take a few risks to succeed. If you're afraid to take the leap, you'll never get anywhere. Staying complacent will never allow you to achieve greatness. Entrepreneurs don't let uncertainty and potential failure stop them from doing what needs to be done. Instead, entrepreneurs look at challenges and risks as opportunities, not as problems. Basic Money Management Skills and Knowledge We often think of successful entrepreneurs as "big picture" people who don't worry so much about managing the day-to-day. And it's true that you might have an accountant or other team members to help you manage the business. However, if you want to be successful, you should still have basic money management skills and knowledge. Understand how money works so that you know where you stand, and so that you run your business on sound principles. Flexibility To a certain degree, you need to be flexible as an entrepreneur. Be willing to change as needed. Stay on top of your industry and be ready to adopt changes in processes and product as they are needed. Sometimes, you also need flexibility in your thinking. This is an essential part of problem-solving. You want to be able to find unique and effective solutions to issues. Passion Finally, successful entrepreneurs are passionate. Entrepreneurs aren't in it for the money. While that may be an added bonus, the true benefit is doing what they love. Building a business takes a lot of time and effort. It means putting in longer hours and doing extra work. If you don't love what you do, you're not going to want to do what it takes to achieve success. Links and Resources: Metropole's Business Accelerator Mastermind Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Go here for the full show notes plus more: The 6 Personality Traits All Entrepreneurs Must Have | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "Not everyone is built to be an entrepreneur. Not everyone is built to be a businessperson. And that's good! Because we do need employees." – Michael Yardney "We don't want our spinal surgeon to take risks and try something new on us." – Michael Yardney "Being a professional, whatever profession you're in, is hard because the world is continuously changing. So, unless you've got the passion, you're not going to get through the challenges." – 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 thought of getting involved in property development? More and more investors want to become property developers. We're experiencing a period of lower capital growth at the moment, so investors want to "manufacture" some capital growth, want to get better rental returns, and want to get their properties at wholesale. This is the first of a series of podcasts over the next couple of months explaining more about the property development process that I will be conducting with my son, Bryce Yardney, who now manages the property development department of Metropole and who, over the years, has been involved in hundreds of property development projects. We're going to start with some of the rules you need to understand if you want to get involved in property development. Then, in my mindset moment, we're going to talk about one thing successful investors do differently to those who aren't as successful. The rules of property development Get all your ducks in a row before you start Before starting down the path of your first (or next) development project, get your finance pre-approved, have your ownership structures set up and have the core of your team of consultants selected. Understand where you are in the property cycle As a development project often spans two or more years, understand where you sit in the property cycle and pay attention to the big picture economic factors that will affect the real estate market. Do careful pre-purchase due diligence You need to undertake due diligence including checking the council zoning, as well specific property due diligence – things like checking: the title for covenants, easements and overlays the neighbourhood character as well as adjoining buildings and trees the topography of the site. Get your budget right Do a detailed feasibility study – be realistic rather than optimistic and include all the little costs beginners tend to forget. Then allow a contingency in case unforeseen costs crop up, because they always will! Don't overpay It's important to buy your development site at a price that allows you to make a fair profit; otherwise you're immediately at a disadvantage. Get a good team around you Your team is likely to involve a property lawyer, accountant, finance broker, architect, real estate agent and a project manager to oversee the whole process. And remember…if you're the smartest person in your team, you're in trouble. Be realistic about your schedule Setting realistic time frames will help you budget more accurately and remember to set aside some contingency money in case unforeseen problems stretch your schedule. Be meticulous with your documentation Put everything in writing, especially when dealing with consultants and contractors. This helps avoid misunderstandings and confusion. And keep very clear accounts. If your paperwork isn't in order, it'll only cause headaches further down the line. Design your project with the market in mind To maximise your profits your project must suit its target market – not necessarily your tastes. Don't become overconfident I've seen many investors make substantial profits through property development; however I've seen even more developers, some much smarter than me, lose it all through overconfidence or undertaking just one more development before the cycle ended or a project with too little built-in profit margin. Hopefully these rules will help steer you on the path of property development success so you won't run into many potholes. What all successful people do differently There are so many sayings we just take for granted as true, but it's important to really look at them, because sometimes they don't make sense. What's the point of having a cake if you can't eat it too? Shouldn't the Trojans have looked that gift horse in the mouth? Today we'll look at two sayings that you may want to reconsider. Don't put all your eggs in one basket. Common wisdom suggests that you need to diversify. But is that really correct? Successful people specialize. Why not just take good care of your basket? Diversification is a protection against ignorance. But successful people focus their concentration on one single earning activity and become an expert in that area. Don't always be on the lookout for new opportunities. If you're like me, you're getting new opportunities in your inbox every day. Opportunities can be like obstacles if they take your focus away from what's in front of you right now. It can be exciting to chase the next shiny toy, but to become a successful investor, you've got to do the same thing over and over again. You'll only become an expert by doing one thing one hundred times, rather than doing one hundred things once. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Bryce Yardney - Metropole Projects Join us in October for our annual Property Renovations and Development Workshop Learn more about

Today's episode is unashamedly about becoming rich and getting more money. I've often said that money's important in those areas where it's important and not important at all in other areas. But any problem that can be solved by money isn't really a problem, is it? So please let me show you how you can obtain more money. First of all, we're going to explain why property investors develop financial freedom. In my mindset moment, we'll talk about some of the money habits of the rich. Then, I'm going to share the steps you need to take to develop financial freedom. It's a process, it takes time. There are no get rich quick schemes here. But if you're patient and follow a proven strategy, money doesn't discriminate. You can have as much of it as you want. Why property investors develop financial freedom We dream of it, work for it, and plan for it. But can the average Australian develop financial independence? Yes. If others have done it, you can too. Wealthy people don't do different things, they just do things differently. And you can learn to do the same. Not everyone works hard for their money. The rich earn recurring passive income. That means that they control a money source that makes money for them even when they're not there. This is how business owners or property investors build wealth. When it comes to how people make money, we can all be placed in one of four categories. Employees – Employees trade hours for dollars. They really only get what's left after the government takes its share in taxes. Self-Employed – a self-employed person owns a job. They want to be their own boss, but often they've simply swapped one boss for many bosses, called customers or clients. Self-employed people aren't business owners, but they do have an advantage over employees, in that they get to take advantage of tax deductions that allow them to pay their business expenses before being taxed on what's left over. Business Owner – A business owner owns a system and people work for them. They don't have to be at work in order for the business to run. They invest their money in an idea and a business system, then let that investment – in the form of a business – work for them. Investor – Investors don't have to work because their money works for them. This is the group that you want to belong to if you hope to be wealthy someday. Investors convert money into wealth. By building your own property portfolio with income-earning residential real estate, you are taking the steps to move from employee to investor. Money Habits of the rich The rich know how to work full-time at their job and part-time on building wealth. The rich save their money and spend what's left. Learn to live on 70% of your income after taxes. The rich contribute to their communities by giving to charity. Of the 30% of your income remaining, 10% of your income should go to charity. The remaining balance should go into savings. When you have sufficient savings, you can begin investing in growth assets. The steps to financial freedom Many Australians have chosen to invest in property to develop financial freedom and get themselves out of the rat race. As they take their investment journey they fit into one of the following five Levels of Wealth. Let's have a look at these more closely and see where you sit: Level 0 – Financial instability Since most Australians live from pay cheque to pay cheque, they are Financially Unstable. If they lose their job or have an emergency, such as an illness or the car breaks down, they have no money reserves to cope. Level 1 - Financial Stability To achieve this most basic level of wealth: You've accumulated sufficient liquid assets (savings or money in a line of credit) to cover your current living expenses for a minimum of 6 months. You have private medical insurance and some life insurance to protect you and your family's lifestyle should you become ill, disabled, unable to work or if worst comes to worst – suddenly die. Level 2 - Financial Security Now you have accumulated sufficient assets, such as a substantial property portfolio, to generate enough passive income to cover your most basic expenses. These would include; Your home mortgage and all home-related expenses. All your tax payments and the interest payments on your loans and debts. Your car expenses. Your grocery bills and minimal living expenses. Insurance premiums including medical, life, disability and your house. Level 3 - Financial Freedom You're financially free when you have accumulated sufficient assets to generate enough passive income to pay for the lifestyle you desire, not necessarily your current lifestyle, and all of your expenses, without ever having to work again. Level 4 - Financial Abundance A small group of sophisticated property investors achieves Financial Abundance when their portfolio works overtime. They're free of financial pressures and have so much surplus income that after paying for their lifestyle, all of their expenses and contributi

You are where you are in life because of all of the things you've chosen to do and all of the things you've chosen not to do. So, in today's show, I'm going to share with you 11 things that successful investors don't do, so you can move ahead in your investment journey. In my mindset moment, I'm going to explain the vast difference between being wealthy and being rich. And in my chat with Ahmad Imam, we're going to talk about the fears of first-time investors. So, if you're a beginning investor wondering if you should or shouldn't get in, this conversation will be very useful. But even if you're not a first-time investor, you may have some of the same fears, so you can get something out of this conversation as well. 11 things successful investors don't do While there are many great tips on what to do to become a successful property investor. However today I'd like to look at a number of things successful investors don't do. They don't concern themselves that the markets are unpredictable. Successful investors are comfortable with the reality that their future can't be predicted. They know that despite having the best plans and strategies there are always X-factors coming out of the blue that may affect them negatively. So they protect themselves by planning for the worst yet expecting the best outcome. They don't accept things as true without questioning. In an uncertain world, we love to be right because it helps us make sense of things. One of the ways we strive to be correct is by looking for evidence that confirms we are correct. Psychologists call this confirmation bias. Instead successful investors understand that most of us are ruled by our prejudices, so they maintain a healthy skepticism and question new information before accepting it to be true. They don't think success will come "quickly" or "easily." Successful investors don't look for the next "get rich quick" scheme, knowing that those with a long-term perspective and who delay gratification are more likely to be financially successful because wealth is the transfer of money from the impatient to the patient. They don't wait for the "right time" to take action. Successful property investors don't try and time the markets. They know there isn't a "right" time to do anything. They don't try and do it on their own Successful investors know that if they're the smartest person in their team they're in trouble. So they're prepared to pay good advisers and have mentors who inspire and motivate them and keep them accountable. They don't waste their time worrying Interestingly most things you fear will happen, never do. They are just monsters in your mind. And if they do happen then they will most likely not be as bad as you expected. The lesson here is that you shouldn't take things too seriously because that which seems like a big problem today, you may not even remember in five years. They don't give others the power to define "success" for them. When you compare yourself to others you let the outside world control how you feel about yourself. Successful people pursue what makes them happy without worrying about what others think, especially other people's definition of success. They don't dodge responsibilities. Successful people are human so they make their share of mistakes, yet they're willing to accept responsibility and admit to their faults. They don't ignore problems. Successful people confront problems as soon as possible. Like all of us they're tempted to neglect things that are difficult to deal with, but tackle them anyway, because putting off a problem only turns it into a bigger one. They don't speculate Rather than following the latest fad, successful investors follow a time-proven strategy that they repeat again and again, recognising that you can't become an expert by doing one hundred things once. Instead, they do one thing a hundred times till they become proficient and can produce repeatable results – that's how they know they've become an expert. It may make their investing boring, but the results make their lives exciting. They don't forget the people who matter. No matter how busy they might be, successful investors make time to tend to their personal relationships, knowing how empty life would get without love and friendships. So, there you have it – 11 things not to do if you want to be a success. Overcoming the fears of being a first-time investor Fear and uncertainty lead to procrastination. The best way to overcome fears is to ask yourself two questions: what am I really afraid of? And how likely is it? Today's chat with Ahmad Immam may help address some of your fears. Strategies for overcoming fears Only listen to people who know what they're talking about. Everyone has an opinion, but not everyone's opinion is useful. Understand the media's love of sensational headlines. You can't turn on the news without hearing something about property, but bad news and sensational headlines sell papers and generate clicks. That does

Do you have children or are you planning to have children? How about grandchildren? If so, this episode is for you. Even if you haven't got children, you'll get some great money lessons from this episode. Today we'll share seven tips to make sure your children grow up rich. And it's not just about money. We're talking about tips that will help children find success in all areas of life. So how do you go about creating a rich child? Here are some of the things we discuss: Reading to Learn Tom Corley found that 88% of the rich folks in his study spent 30 minutes or more every day reading to learn, whether it was about money, how to succeed in their industry, self-help, biographies of successful people and history. Cultivating relationships: You want to associate with those people that typically upbeat, optimistic, enthusiastic, positive types. If you're not in a circle that meets those criteria, volunteering at a community nonprofit is a good way to find them. Exercising: Because exercise improves brain performance by increasing the amount of oxygen and helping the health of the neurons, people who exercise think faster and have better memories—which make you more competitive in the workplace. Managing anger: It's normal to feel anger and frustration, but how you express it can make or break your success. Exploring talents: When kids are little, they get to do a lot of activities such as art, music, theater, and sports. But as they get older, they focus on just one or two. But that's a mistake. Exposing kids to numerous activities helps them explore their talents Keeping an abundance mindset: Of all the habits, this is the most significant that plays out in every aspect of our lives. Our brains are wired to emulate our parents from the start. Dream-setting: Dream-setting is a process. It's visualizing what your ideal life would be. The self-made millionaires in his study would map out what their dreams are at least 10 years into the future, and then build goals around the dream to make it a reality. Some of our favourite quotes from the show: "Being rich is about wealth in all facets of life." –Michael Yardney "You definitely have to grow and learn by having that habit of reading. It's a success habit not just of children, but of adults." – Michael Yardney "I want an expandable pie where if we all do well, are more productive, our country is better. There's enough for everybody." – 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 are changing in front of our eyes, but a couple of things are changing that you may not be aware of. One of those things is the ghost towers in Sydney. What's a ghost tower? You'll find out in this episode. It may not be what you expect. I'm also going to have a chat with Andrew Mirams about the changing finance markets and bust some myths about finance. In my mindset moment, we'll talk about 12 things that are more important than money. Listen in and by the end of the show, you'll be a more informed businessperson, investor, or entrepreneur. Sydney Ghost Tower warnings The ghost towers that are springing up across Sydney aren't haunted buildings, they're empty apartment buildings. By the end of this year, around 54,000 new apartments will have flooded the Sydney market in just two years. This has led to an oversupply of apartments for sale or for rent. Of course, this has occurred at a time when first-time buyer incentives have worked, with one in four people in the Sydney property market currently buying their first homes. It just hasn't been enough to soak up the extra apartments, though, and ghost towers are on the rise in Sydney. These vacancies have created a tenant's market, giving tenants the upper hand in lease negotiations. Landlords and property owners need to keep their rents the same when the lease expires, and may even need to drop their rents when their property become vacant in order to find new tenants. Metropole's Sydney vacancy rates are at about half the general market industry average, and they're currently sitting at around 2%. A large factor in this is the type of properties that we bought for our clients over the years – established apartments in small blocks that are close to amenities, that are still in strong demand and that have some uniqueness to them. Those apartments are holding their values well and they're leasing more quickly. The problem is we're building too many of the wrong type of apartments, and there are too many of the wrong types for sale or lease. Currently, the apartment market is being artificially propped up by developers manufacturing scarcity by holding onto their stock. They're not releasing a lot of their vacant apartments on the market because the market is saturated. At the same time, many investors are not putting their properties on the market for lease. They're keeping them in brand-new condition and waiting for better times. Developers built high-rise apartments aimed at foreign investors and a new generation of local investors who really didn't understand what made a good investment. This has led to high vacancy rates. Investors are going to lose out not only because they're not getting their rent, but because they're unlikely to see an increase in the value of their properties for at least a decade. Those who wish to sell or have to sell are going to have trouble finding buyers. Established apartments, the ones that used to be called flats, are outperforming new apartments. They're what we call "investment grade" apartments because they appeal to a wider range of more affluent owner-occupiers, not just investors. They're located in the right places, a short walking distance to lifestyle amenities. They have street appeal and good views, they offer security, and they usually have the ability to add value. And they have a high land-to-asset ratio, which is very different to the big buildings. The bottom line is that buying an investment-grade property is all about following a proven blueprint laid out by successful investors. It surprises me that people are still talking about buying off-the-plan apartments. Your best move is to avoid them. You're more likely to increase your chance of financial success in the future and reduce your chance of getting caught out as the property market moves to the next cycle by buying the right property in the right location. Don't worry about the timing. This is one of the best countercyclical buying opportunities I've seen in many decades. Busting finance myths It doesn't matter how long you've been with a bank, you still have to meet the current assessment criteria. Don't assume that your bank will take care of you out of loyalty. Things change with the credit cycles, and just because you got money in the past doesn't mean that you'll be able to do it again. You may not qualify, or you may need to meet new criteria. Your credit cards and credit limits matter. Whether you use it or not, you could spend up to that limit. And at any time your circumstances could change. So, it does matter and you do have to disclose credit cards and limits If you're adding a higher interest rate and a lower term, that has significant impacts on your borrowing capacity. We've hit the bottom of our credit squeeze. We want a balanced market. That will have a positive effect on the ability to borrow. Having a finance strategist on your side makes a big difference because the banks really aren't on your side. 12 Things

Are you looking for more success in life? If so, then today's show is for you. I'll be sharing with you tips from high achievers to help you get further in your property investments, career, and other parts of life. I'll also have a chat with a successful person, Ahmad Imam, who's going to share some property tips as well as some general life tips that he would have liked at the beginning of his career. 13 things high achievers do differently I've noticed there are some rules that high achievers never break. I makes sense that if you obey these rules, you will also become a high achiever. So let's look at them… Don't compare your life to others and don't judge them; you have no idea what their journey is all about We all have our own distinct purposes in life. Be yourself always and become the best version of you. Don't act the way you are feeling. Instead, act the way you want to feel High achievers get disappointed a lot because they fail many times, but since they are highly optimistic people, they see advantage in adversity and make the best of every situation. Make peace with your past so it won't screw up your present Forgiveness is the first step to progress and only those with a strong heart can forgive themselves and those who have hurt them. Move forward today and stop dwelling on the past. Don't answer ads that promise get-rich-quick schemes because it won't be you who gets rich quick If it sounds too good to be true, then it most likely is. You can't do everything yourself, so get help along the way Your level of influence in most cases determines your level of success. Make meaningful relationships and help others get what they want. Don't envy what others have; you don't know how they got it The truth is that you don't know how he got what he has or the price he had to pay in exchange for it. Think about this before you envy somebody. If you can't say anything nice, don't say anything Most successful men are very careful with their tongues–they hardly speak out of turn or when it is unnecessary. Learn to talk less and listen more. Be comfortable only outside of your comfort zone Do something every day that scares you and break your own records each day. If you are going to jump off a bridge, make sure you know how deep the water is This is the gateway to tremendous self-improvement. It is the secret of high achievers. Always determine the price you have to pay for every decision you make before making that decision. Change only what you can change and let go of the rest No matter how important it may be, sometimes it's better to do your own part and leave the coming generation to do theirs. What others think of you is none of your business Ignore whatever anyone has to say about you and hold firm what you know and what you believe. Never test the depth of the river with both feet Spread out your risks in life. There is no way to succeed without taking risks, but it's wiser and safer to take calculated risks. Honesty is a very expensive gift. Do not expect it from cheap people Do not expect too much from people–only a few men have that virtue called integrity. Investing and success tips from a property expert Take the emotion out of your investment decisions – When investing in property, decisions should be based on strategy, statistics, and logic. Will the property provide wealth-building rates of growth? Is it the highest and best use of your funds? Is the location a stable market? Does the property have owner-occupier appeal? Can I purchase the property at or below intrinsic value? Does the property have a twist that will make it unique relative to the level of demand? Does the property have the potential for value-add via renovation or development? Avoid speculative investing – it can be tempting to buy a property in a location that's predicted to be the next best thing, but it can also be risky. Hot spots tend to be not-spots. There are three core fundamentals to keep in mind: Leverage Compounding Time If you want something you've never had, you have to do something you've never done. Amazing things happen outside of our comfort zones. It doesn't matter how slowly you go, as long as you do not stop. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Ahmad Imam – Metropole Property Strategists Sydney Some of our favourite quotes from the show: "It's not going to be you who gets rich quick. It's the person who's going to sell you whatever they're selling you." –Michael Yardney "I keep saying, I'd like my investments to be boring so the rest of my life can be exciting." –Michael Yardney "You are where you are today because of all the things you've done and all the things you've chosen not to do." –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 i

Imagine you woke up one morning and found out your investment property was on Airbnb. Your tenant, who you thought was looking after your property is now letting anyone and everyone in. What are your rights? What would you do? Today we're going to have a chat with Leanne Jopson about what your rights are and how you can prevent this. I'm also going to share in my mindset moment, six things successful people only ever do once. In our first segment, I'm going to chat with Ken Raiss about whether Australia could fall into a recession. Are we in trouble? What could be ahead? What should we watch out for? You'll find out in today's episode. Could Australia really fall into recession? What is a recession? A recession measures how the economy is growing measuring GDP. Every quarter is measured against the previous quarter. A recession is when the value of goods and services (GDP) has fallen in two quarters in a row. According to Ken Raiss, if a recession did occur now, the bounce back would be relatively fast. The negatives at the moment are subdued property prices and wage growth. But more people have jobs than ever before and for most people, the ability to pay their living expenses and home expenses is driven because they have a job. The unemployment rate is at the lowest it's been for quite some time. The Australian economy has turned around in relation to property process, so the rate of decline has slowed. There's a lot of activity in the economy and money being generated. The RBA has relaxed its restrictions on home lending. APRA have reduced the gap that they require to show that people have an ability to repay. We also have a more stable government, we're seeing a stimulus by the government at both the state and federal level, and we're seeing growth in iron ore and coal, both in price and volume. Additionally, population growth is up. These are all signs that we should be optimistic about the future of Australia's economy. What if my investment property ends up on Airbnb? Leanne Jopson Every state has slightly different legislation, but landlords do have protection against their tenants letting out their properties on Airbnb. In Victoria, owners' corporations have the power to impose fines on owners of properties where their tenants who disturb other residents. They can be charged a separate fine for each resident affected. Across all states, landlords are protected because a tenant can't sublet your property without permission. That restriction was briefly lifted in 2016, but now it's back in place. In New South Wales, planning laws limit the number of nights that a property can be let on a short-term stay basis (like Airbnb). The key to finding out a tenant is subletting is having a professional property manager monitor for telltale signs. Some signs include: Key safes outside of properties Too many toothbrushes Empty or extra beds Lots of spare linen in the cupboards When it comes to insurance claims for damage caused by an Airbnb letting, if you granted permission for your tenants to let the property, you will need to have your policy adjusted to cover that risk. But if your tenants were letting the property without your permission or awareness, you'll be able to make a claim for your damages. Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Ken Raiss – Metropole Wealth Advisory Organise a time to speak with Ken by clicking here: www.Wealth.Metropole.com.au Leanne Jopson – national director Metropole Property Management Some of our favourite quotes from the show: "Sometimes we ignore our gut instinct about people, and it can get us into hot water." – Michael Yardney "If you make decisions based on what you may think feels good in the moment, then it's very likely you're going to fail to take care of your long-term plans." –Michael Yardney "If you're not strong on detail, you'd better surround yourself with people who are." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

The Reserve Bank's board meeting minutes for July paint a much more gloomy picture of the economy than the one governor Philip Lowe paints in public. The RBA has left the door open to even more interest rate cuts due to their ongoing concern about the state of the jobs market and the lack of wages growth. So what does this mean for our economy, for our property markets and for your pay packet? The RBA board members agreed jobs growth needed further acceleration when they cut the cash rate to a record low to 1% at the beginning of July, but the minutes from the central bank's latest board meeting confirmed that further rate reductions are on the table. In fact the money markets are pricing in a 78% chance of another 0.25% rate cut in November. Some of the topics we discuss: What is going on with our economy The RBA minutes seem to contradict the positive spin RBA governor Phillip Lowe put on things when he recently met with Treasurer Josh Frydenberg and said: "I agree 100 per cent with you that the Australian economy is growing and the fundamentals are strong." The Reserve Bank seems to have set itself some ambitious goals when it indicated that it wanted our unemployment rate to drop to 4.5 per cent, which they argued would mean full employment. At that level the RBA believe excess capacity in the labour market would be soaked up, wages would start to rising and in turn this would drive inflation back up into the RBA's target band. This looks like quite a challenge. The last time unemployment was that low was late 2008, and inflation has only been in their preferred range of 2-to-3 per cent a couple of times in the past five years. The big question is - where will all the new jobs come from. With the construction industry slowing down and retail spending languishing, it will be really hard to create the number of new jobs the RBA is hoping for. Will this lead to another property boom? Some commentators are suggesting we're on the cusp of another property boom with surging house prices. While lower rates and more jobs will be positive for our property markets, I don't see a property boom ahead. Sure prices will flatten out over the next few months and then start rising gently, but it is likely property values will only rise 3% to 5% in our 3 big capital cities next year. Of course our markets will, as always, be fragmented, so some areas will outperform. However if overall house prices do respond aggressively, this will create a policy dilemma for the RBA which doesn't want this to occur. What's happening on the jobs front The continued flood of new job seekers has pushed the participation rate to record highs and meant solid employment growth has made no inroads into the unemployment rate (5.2%) which has actually climbed a little over recent months. Why we are skeptical that lower rates will decrease the unemployment rate to the range the RBA is looking for. If the RBA expects growth will only return to trend "over coming years", then it's unclear how the economy will produce enough jobs to push the jobless rate to 4.5 per cent or below, which is where monetary policymakers now reckon it needs to be before we get some meaningful and sustainable wages growth. Links and Resources: Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Join us at our annual Property Renovations and Development Workshop in October – click here for more details This podcast was originally published as a video here:Are we heading into dangerous territory? What the RBA minutes reveal – PROPERTY INSIDERS VIDEO 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 mood for our property markets has definitely changed. If I were to ask you what moves our property markets, what would you say? Finance? Supply and demand? Today I'm going to discuss one of the major factors that move our property markets. It's one that most people don't talk about or understand. In my mindset moment I'm going to discuss ways to fail. This show is usually more about success than failure, but if you understand how to fail, you'll better understand what not to do so that you can become more successful. Finally, I will have a chat with Ken Raiss about some finance hacks about getting more financially fit. How investor mindset moves the markets Market movements are far from an exact science. The fundamentals are easy to monitor. Things like population growth, supply and demand, employment levels, interest rates, affordability, and inflationary pressures. However, one overriding factor that the experts have difficulty quantifying is investor sentiment. And that's what's really been behind market movements of late. We're not rational I've found that investors often suffer lapses of logic when investing and many of their investment decisions are driven by emotion. For example, we tend to extrapolate the present in the future. When things are booming we tend to think the good times will never end and when the market mood is glum, we have difficulty seeing the light at the end of the tunnel. Can you see how investor psychology, drives booms and busts? Can you see how the dominant investor mentality of the time helps drive the property cycle? Just to make things clear…homebuyers, who make up around 70% of property transactions drive our property markets. But investor activity creates our booms and busts. We follow the herd. Obviously, one or two misguided investors won't be able to influence property prices, but investor psychology is infectious. People tend to want to do what others are doing - they 'follow the herd' because going against popular opinion is perceived as risky. What if you make a mistake? What if "the crowd" is right and you are wrong? This behaviour stems back to the days of our ancestors when it was safer to remain part of the herd rather than leave the security of the pack and be eaten by a Saber-toothed Tiger. This "herd behaviour" is magnified by several things including; Mass communication enabling the behaviour to become infectious. Now more than ever we are bombarded with messages from the media that influence how we think and feel about things. When we hear that real estate is doomed, all but a handful of sophisticated investors get scared out of the game. And when the media tells us housing markets are booming everyone wants a piece of the action. Pressure to conform. If your friends or family are doing it, it must be right. Right? Human nature makes us reluctant to do the opposite of what our peers are doing. A major precipitating event can give rise to a general belief that motivates investor behaviour. The Global Financial Crisis that saw waves of investors scared out of the share and property markets. On the other hand, the resource boom enticed thousands of investors into mining town housing markets to cash in on the resulting property boom. A general belief that grows and spreads. When the belief that property values can only go one way, and that is up, spreads through an uneducated new generation of investors the enter the market pushing up prices, perpetuating the belief and helping make it a reality! Similarly, when the herd believes the market is going to crash, they steer clear, this gets reported in the media and the negative sentiment feeds on itself. When investor sentiment is positive, the crowd jumps in feet first, pushes up demand and places upward pressure on prices – causing boom conditions. Conversely, when sentiment is negative, the crowd backs off and frequently sells out of the game due to concerns that they're about to lose everything – causing market slumps. What can an investor learn from this? Our property markets aren't only driven by fundamentals, but also by the often irrational and erratic behaviour of unstable crowd investors. Booms never last forever, and neither do busts. Don't be surprised when they come around and don't overreact. This will stop you from getting sucked into the booms and spat out during the busts. Treat your property investments like a business and stick to a proven strategy to help take the emotion out of your decisions. Recognise that property is a long-term play and set up financial buffers to help you ride the property cycles. Invest counter cyclically I've always been an advocate of counter-cyclical investing because moving against the crowd often produces the best results and can mean the difference between outstanding gains in the property market and average ones. Sure, it takes some courage to do the opposite of what everyone else is doing, but the results of your contrary behaviour will ultimately speak for t

Want to build a business and not a job? If you're a business owner, entrepreneur or professional, you'll have to grow your business very differently to most people. The traditional way to build a business is to build a Level Two business. In a Level Two business, you as the business owner gather up the reins of power. If something should happen to you, your business would crumble. If you manage to somehow escape for a short vacation, you probably sneak your laptop or iPhone with you on the trip and check email when your spouse and kids aren't looking. What's wrong with building a level 2 business? Pitfall 1: It caps your income and your success. If your business revolves around you and your personal production, as you become more successful, you'll smack up against the ceiling of how much you personally are able to produce for your business. Pitfall 2: It puts everyone at greater risk. If you stop working or get injured, your business dies—quickly. This is risky for you, your family, your employees, your customers, and your investors. Pitfall 3: It eventually corners you in the Self-Employment Trap™— the more success you have, the more trapped you become inside your business. You're so busy doing the "job" of your business that you can't step back and focus on growing your business. What's the way out of the Self-Employment Trap? Simple: build a business, not a job. In the traditional Level Two approach, you try to escape by personally working harder. But that's like stepping on a treadmill and saying that the way to get off is to simply run faster. Not so. The faster you run, the faster the speed of the treadmill. You take on more overhead and hire more employees, but you put them into a Level Two model that merely increases your personal pressure to produce. A job is something that you do yourself; a business you build does your job for you! Getting your business to do more means building the infrastructure that profitably produces value in the market in a scalable way. This means building your business with the end in mind, the end being the day when it no longer needs your time and attention on a daily basis. As you enter Level Two, you'll face a crucial decision point at which you can settle for owning a Level Two job or instead choosing to raise your business to be a strong and independent entity that benefits from your involvement but is ultimately independent of it. The traditional Level Two approach is for you the owner to work harder, to do more—to work at the job of your business. The Level Three solution is for you to do less and get your business to do more. The 4 Building Blocks of All Level Three Businesses Every Level Three business is made up of these four key building blocks: Systems Team Controls Scalable solution Links and Resources: Metropole's Business Accelerator Mastermind Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Some of our favourite quotes from the show: "I've learned over the years that it really is important to let go of control" –Michael Yardney "If everything's dependent upon you, what happens if something happens to you?" –Michael Yardney "Having a group of people around you who are already movers and shakers, who are already successful, that's so, so different to reading something on the internet. It's so different to reading a book or listening to a podcast." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

If you're looking for more money, more success or to learn to be a better property investor, today's show is for you. I'm going to share three important concepts in today's episode. Firstly, I'll be sharing some tips for a better financial future. Then, in my mindset moment, I'll explain the big investment that the rich make that the poor don't. Finally, I'll have a chat with Brett Warren, the Director of Metropole Properties in Brisbane, about the lessons that he would have liked to know earlier in life that would have helped him become a better investor and more successful person. 7 Tips for a better financial future Start paying attention to your finances Allocate where your money is going Faithfully follow your budget Keep track of your net worth Set some financial goals Pay off your debts Spend less than you earn, and start saving the rest The investment that separates the rich from the poor I'd like to share with you one surprising investment that separates the rich from the poor. And that's how you invest your time. That's going to determine how your financial future will unfold. People often tell me they can't invest because they don't have enough money, and I tell them that if they don't have enough money, invest their time. However, most people don't have enough time to invest either. They think working harder or longer is going to make them richer. But nothing could be further from the truth. The problem is most of us are working harder, but the inflation-adjusted wages have stayed stagnant. Working more doesn't mean making more or keeping more. Rich people work to build assets. This means businesses or investments that will bring cash flow whether the person is working or not. Adding assets doesn't mean working longer or harder. The more financially fluid you are, the less you'll need to work. Rich people know how to make their money, and other people's money, work for them. Lessons for Better Property Investing and Success Location does 80% of the heavy lifting Choose capital growth over cash flow Success comes from a series of small steps in the right direction Successful people have multiple streams of income Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Brett Warren – Director Metropole Properties Brisbane Some of our favourite quotes from the show: "Debt takes away your options, and debt takes away your future financial freedom" –Michael Yardney "Never buy anything with your credit card that you can't pay off by the end of the month." –Michael Yardney "Success is a long-term journey, and along the way, as we've mentioned before, there's lots of little failures." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Would you like to know where house prices are going to be at the end of this year and next year? Today, I'll share the latest forecasts from Domain, and we're going to run through them state by state and explain what might make them better or worse depending upon what happens in our economy. Then in my mindset moment, I'm going to show you how you won the lottery. Today's episode contains a lot of numbers and figures, but I think the trends that I'm going to explain will give you some comfort. What's Ahead for Australia's Property Market? Remember, it wasn't that long ago that our media was predicting housing market Armageddon. The property pessimists have again been proven wrong. Having said that, this has been the longest and the deepest property downturn in modern history. What's ahead? Remember there is not one property market nor one Sydney or Melbourne property market, but having said that, Trent Wilshire, economist for Domain, forecasts that property values are likely to stabilize in the capital cities by the end of the year, and in fact rise in some locations, and he predicts moderate growth in 2020. Forecast for Sydney: House and apartment prices will be 2% higher by the end of 2019 In 2020, house prices will increase by 3 to 5% Apartment prices will rise by 2 to 4% in 2020 About 25% of home loans in New South Wales in March went to first home buyers Prices of off-the-plan and new apartment in high rise towers Sydney are likely to fall Forecast for Melbourne: House prices have fallen about 11% since their peak, and apartment prices have fallen about 8% Prices are likely to increase by about 1% by the end of 2019 In 2020, house prices will increase by 1 to 3% Apartment prices will rise by 0 to 2% in 2020 Melbourne's population is predicted to rise by 10% in the next few years Forecast for Brisbane: Housing prices will bottom out in the next 6 months and rise by 1% by the end of this year and 3-5% in 2020 After bottoming out apartment prices in Brisbane will remain flat next year. Brisbane's fragmented market means that some areas will rise faster than others Forecast for Canberra House prices will rise by 2% by the end of 2019 Apartment prices will rise by 1% by the end of 2019 Canberra will be the strongest property market in 2020 House prices will grow by 4 to 6% in 2020 Apartment prices will be subdued by the oversupply of apartments Apartment prices will grow by 1 to 2% in 2020 Forecast for Perth: Prices will bottom out over the next 6 months After prices bottom out, there will be slow growth Perth will see 0 to 2% growth in 2020 Perth will see a rise in population growth Forecast for Hobart: Hobart has been the best performing property market in the last 3 years, but the boom is over Hobart will not see any growth in housing for the rest of 2019 Apartments will grow by 2% in Hobart by the end of the year There will be 2 to 4% growth in Hobart house prices in 2020 Forecast for Adelaide Adelaide property prices continue to rise slowly Adelaide will see 1% growth for houses in 2019 Adelaide will see 2% growth in apartments in 2019 In 2020, Adelaide's housing prices will rise by 1 to 3% Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Some of our favourite quotes from the show: "Remember, Melbourne is rated as one of the 10 fastest growing large capital cities in the developed world." –Michael Yardney "Property prices are driven by investors in particular." –Michael Yardney "Entitlement gets us nothing but heartache. It blinds us to the magic of gratitude." –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 is change in the air – our property markets are showing some promising signs And the biggest question buyers and sellers in Sydney and Melbourne are asking is: "Are we there yet?" In other words, they're wondering have our property markets hit the market floor and is it time to get back in again? We've also received the much anticipated second interest rate cut, which by the way isn't good news. In this month's Property Insiders market update Dr. Andrew Wilson and I bring you up to date on what's happening around our property markets. We discuss This month's interest rate announcement – the RBA is clearly targeting unemployment. They want to move the unemployment rate down into the low 4's to soak up the spare capacity in the employment market with the aim of impacting wages growth. The Global economic environment. The major story this month has been the trade tensions between the US and China. If they persist they could impacting global GDP but we did see some positive moves recently with a downgrading of the tensions. The Domestic economy – including GDP - we saw the March quarter GDP figure — growth for the March quarter of 0.4%, which meant that the annual pace of growth in the economy has dropped from 2.4% down to 1.8%. The unemployment rate in May was steady at 5.2%. There were 42,300 jobs created — the strongest monthly jobs growth in the past 12 months – 39,800 new part-time jobs were created, whereas only 2,400 jobs full-time. The participation rate rose to 66%, which is the highest it's ever been in terms of people looking to get employment. The Wilson Asking Price Index - There are mixed signs this month with asking prices improving in Sydney – but falling elsewhere Auction clearance rates What's ahead? Nationally our property markets are likely to bottom out in the next few months and property values are likely to be a little higher at the end of the year than they are today. While servicing a mortgage may become a little easier, the introduction of the Banking Code of Conduct and the expansion of Comprehensive Credit Reporting from the beginning of July means the scrutiny on loan applications will remain significantly greater than it has been in the past. Given this, don't expect a significant bounce in property values – the recovery in housing market conditions is likely to be slow and gradual. Links and Resources: Guest: Dr Andrew Wilson – MyHousingMarket.com.au July 2019 Housing Market Commentary | PROPERTY INSIDERS VIDEO 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 subconscious never sleeps, it keeps working tirelessly day in and day out. It's the seat of our emotions and our memory and it responds to our beliefs. That's what I want to talk to you about today. There's something in your brain called the reticular activating system that acts as a data filter. Our brains are constantly bombarded with millions of bits of information, and this system eliminates most of those, allowing in only the sounds it's preprogrammed to allow in. What I'm trying to show you in these sessions, is that some of the habits we have are engrained in the subconscious. We all have empowering and disempowering habits. In today's show, I want to go through with you the habits that differentiate between the successful people and the average person so you can learn to work on developing habits that will help you on your way to success. Success Habits of the Rich Successful people don't believe in or wait for fate, destiny, chance or luck to determine or shape their future. They believe in and are committed to actively and consciously creating their own best life. The poor think about money emotionally, while the rich think about money logically. Successful people have a plan for their lives and work methodically at turning that plan into a reality. Their lives are not a blundering series of unplanned events and outcomes. The poor often think that rich people are dishonest, while successful people know that rich people are ambitious. While the poor believe money is the root of all evil, wealthy people know that poverty is the root of all evil. The poor believe money changes people. The rich understand that money reveals people. The poor are worried that if they become rich they will lose their friends. The Rich believe being wealthy will expand their network. Successful people are resilient. When most would throw in the towel, they're just warming up. The poor believe their thinking is unrelated to their net worth. Successful people know their mindset is critical to their results. Many people believe you have to be educated and smart to be rich. Successful people know intelligence has little to do with getting rich, but know they have to be financially fluent. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Some of our favourite quotes from the show: "People sabotage themselves and they don't get rich because they have these feelings that the rich are ugly greedy bad people, and that's not necessarily the case." –Michael Yardney "If you can change your habits, you're going to change your life." –Michael Yardney "Your mindset is critical to your results in life, in all areas of your life, including 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.

I'm often asked what I would do differently if I could live my investing journey all over again. If you ask me, one of the keys to investment success is the ability to pick yourself up from setbacks, learn what you can from them (including your own limitations) and simply try again. So, to help prevent you from making the same mistakes, I've put together 16 things that I wish I'd known when I first started investing. The value of education My first couple of investments were successful, but the worst thing that can happen to a beginning investor is to get it right the first time – you think you're smarter than you are when in truth my early successes were because of a rising market rather than my own "brilliance". Thankfully, I recognised this and set about becoming better educated by reading books and seeking out teachers, mentors, and consultants for advice. And I still continue with my education and personal development to this very day. Goal setting Far too many people invest in property with no idea what they want to achieve or by when. They may buy one or two investment properties, usually in suburbs where they live or "understand", but they haven't set any clear long-term goals. Setting goals helps you focus because if you don't know where you're going, while any road may get you there, every road may also get you lost. Create a property team Because everyone has lived in a property of some sort, most people think they know a bit about property. While property investing may be simple, it's not easy and that's not a play on words – it takes skill. And sometimes those skills should come from other people who know more than you do. So, create a good team around you including mentors and advisors or your "brains trust" as I like to call it. However, if you're the smartest person in your team, you're probably in trouble. Think rich, not poor You probably believe that you deserve to be rich and successful. The problem is your income will seldom exceed your personal development. That's why it's important to develop the mindset of rich people and the rich habits of successful property investors. Have an abundance mindset To become successful, you'll also need an abundance mindset. What do I mean by that? An analogy is to think of yourself as a cup. If your cup is small you can only accumulate a small amount of money, any extra will spill over and you will lose it. You simply cannot have more money than the size of your cup. Instead, develop an abundance mindset in which your cup is big and deserving of being filled with success. Delaying gratification Far too many people can't resist the instant gratification of buying that shiny new toy using their credit card thinking the money in their limit is theirs. It's not – it's the bank's money you pay interest on for the privilege of using. To become rich, you must learn to delay gratification as wealth is the transfer of money from the impatient to the patient. Overcome your fears The truth of the matter is that fear is a powerful human emotion. While it can help us, it can also prevent us from investing because we illogically see it as too "risky". However, with a sound investment strategy, and a property team around you, you can minimise the risks. Don't let failure hold you back We all make mistakes. The difference between ultra-successful people and the average Australian is that successful people don't let failure hold them back. Instead, they get up and try again. What I mean is that, because we can't go back in time to change decisions that we've made, there really is little point in dwelling on them, is there? Instead, I prefer to learn from my mistakes and move forward smarter than I was before. And in the world of property investing, there is so much to learn and unfortunately, mistakes can be costly. Understanding the power of compounding and leverage One of the big secrets to successful property investment is the power of compounding and leverage. This means the earlier you start investing and the longer you hold your properties, the more time your money has to grow. And with a long-term horizon, you don't have to be overly concerned about the ups and downs of the market. It's not a get rich quick scheme Sure, Sydney's property market has made heaps of money for investors over the past six years. But for the 7 years before that, the market was actually flat. Having invested for over 40 years now, one of the many lessons I've learned is that property investment is not a "get rich quick" scheme. It's a get rich slow one! Ignore white noise You're probably aware how the media loves a real estate story – particularly those that "predict" a property bust. The truth is that a significant price falls in well located "investment-grade" capital cities properties is unlikely. So, learn to ignore the "white noise" and keep your eyes on your long-term goals while not taking notice of short-term market vagaries. Both capital growth and cash flow are important In m

Do you want to know when our property markets are going to bottom out? Think about it…it wasn't that long ago that the media was telling us that we're in for even further property price falls. But look what's in the media today. Many people are asking how to pick the turning point in the property market. Is it too early to get in and buy countercyclically? Is this the right time? In this episode, we'll talk about what to look for to pick the turning point in the property market. Also, I'll share my views on buying counter cyclically. I'll also share some of the lessons that we've learned from past property downturns, and in my mindset moment, we'll have a chat about fears. How to pick the turning point in our property market Even the smartest economists armed with all the data can't pick the exact moment the market turns. But there are some signals you can look for. The macro economics – The property market doesn't work in a vacuum, so the world economy and the country's economy matter. Keep an eye on inflation and wages growth as well. Finance – Property markets are driven by the availability and affordability of finance. Keep track of data on credit growth. Credit growth is a leading indicator – it turns positive before the markets do. Market sentiment – Increased consumer and business confidence are good signs for the future. Supply and demand – The population is growing faster in Australia than any other country, and this fuels demand for property. Vendor discounts -- When sellers don't have to give as much of a discount to sell their home, that's a sign that property markets are starting to turn, and that will come before property values start to increase. Increase in the number of transactions – This will happen as buyers and sellers return to the markets Asking prices – Asking price is an accurate real-time indicator of what's happening in the market Option clearance rate – This is a good indicator of market confidence. Now is a good time to make a countercyclic purchase in Sydney or Melbourne or ride the property wave that started a while ago in Brisbane. Lessons learned from past property downturns I've been investing since the early 1970s, so as you can imagine, I've seen the ups, the downs, the stabilisation phases, and the booms come and go and repeat themselves. I'd like to share with you ten lessons I've learned from previous cycles. Booms never last forever – Every boom sets us up for the next downturn, so be prepared when it comes. Adhere to the strategy – Don't change your long-term strategy because of short-term factors. Getting rich quick is getting poor quick – Successful property investing takes time. There are no shortcuts. You need a long-term perspective – Keep your eye on the long-term horizon. Property investment is a game of finance with some houses thrown in the middle – Strategic investors buy time by having financial structures in place to ride through the cycle. Invest in locations with a future, not a past – Find a location where the local economic growth will lead to jobs and wages growth. You know less than you think – An overinflated ego will leave you worse off than you started. Surround yourself with mentors and experts who can teach you things you didn't know. Don't mistake money for wealth – True wealth hasn't got to do with how much money or property you have. It's what you have left when you lose it all. When good times seemingly turn bad, property pessimists and doomsayers come forward – Sophisticated investors ignore the white noise and focus on the long term. Opportunity is knocking – Take action when those around you are talking doom and gloom. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Some of our favourite quotes from the show: "As I see it, there really hasn't been as good a time to buy counter cyclically for over a decade." –Michael Yardney "A world without fear would be simultaneously more dangerous, less rewarding – just plain flat." –Michael Yardney "Don't be scared of bad things happening. Do your homework, do your research, and get on with it." 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 thought about investing in commercial property? You're not alone — faced with the prospect of more moderate returns from their residential property investments, many investors are considering this as an alternative. By this, I mean offices, shops or warehouses. In today's podcast, I'll be exploring the benefits of investing in commercial property, as well as some of the negatives. Benefits of commercial property There are of course many benefits from investing in commercial property Strong returns — Over the years commercial property has provided strong returns as a combination of capital gain and income. Stability of income — One of the important features of commercial property is returns are generally high and more secure. Returns for property fluctuate considerably less than returns on shares. Low risk — There is less volatility in the value of commercial property than in shares — if you own the right property. Exposure to different sectors of the economy — Retail and industrial properties have a direct relationship to the general state of the economy. Retail property depends upon consumer spending. Tax benefits — Commercial properties provide generous tax benefits with substantial depreciation allowances. Some buildings also attract building allowances, where a portion of the structural cost can be offset against the assessable income. Hedge against inflation — The value of commercial property and rentals of commercial properties have outpaced inflation over the long period. Investment control — As the owner of commercial property, you have a significant degree of control over your investment. You can choose to do improve your return through renovations, upgrading, and change of the use of the property, or you may amend the terms of the lease or the type of tenant you have and you always have the option of further development of the property or dispose of it. Leverage — Just as with residential properties it is possible to leverage your returns by borrowing up to 70% of the value of commercial property. Adding value — Just as investors in residential property are able to add value by buying a run-down property and renovating or redeveloping it, there are opportunities in commercial property to add value. In particular, if you can increase the rental income from your property this will directly reflect on the valuation of the property. Ways you can add value to your commercial property investment include: Renovating Upgrading Subdividing or enlarging the block Improving the appearance of the property Obtaining permission for redevelopment Renegotiating the lease Changing its use for example to residential The negatives of commercial property Some of the disadvantages of investing in commercial properties include: Lack of liquidity — Selling a commercial property can take several months — often longer than it takes to sell a well-located residential property. Lack of pricing information — Compared to residential property there is little pricing information available for investors in commercial property. It is, therefore, more difficult to know the value of your particular property. You may able to get some information from the Property Council of Australia or from the following websites https://www.commercialrealestate.com.au/or http://www.realcommercial.com.au Scarcity of other information — If you are interested in share or in residential property, there are many blogs, magazines, newspapers, and websites that will help keep you informed and make you a better-educated investor. There are very few information resources for people interested in commercial real estate. You will find some articles in the Australian Financial Review and in the reports produced by some of the larger commercial property agencies. Higher costs — The entry level to purchase a commercial property is usually higher than that for residential. Partly because the price of a good commercial investment is substantial and partly because you require a larger deposit as banks won't lend you as high a proportion of your property compared to residential real estate Ongoing management — Direct property investment in commercial properties can require your ongoing management but usually requires less management than similarly priced residential properties. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Commercial Property Investment Guide Ahmad Imam - Metropole Properties Sydney Some of our favourite quotes from the show: "My mistake was doing it a bit too early because I didn't recognize at the time that while I got good cash flow, I didn't get much capital growth." –Michael Yardney "As a commercial investor you need to come up with more equity, you need more cash in your stash to get going." –Michael Yardney "In general, commercial investors are looking for the security of the lease." –Michael Yardney PLEASE LEAVE US A REVIEW

The 7 Major Benefits of Taking Your Business to Level Three It's well worth investing your time, energy, and resources to build a thriving Level Three business. When you do, here are the seven tangible benefits you'll get: It gives you control over your financial future. It will massively increase your net worth. Your business is much easier to scale. You earn your freedom from your business. A Level Three business gives your staff security and growth opportunities. Your business is dramatically more stable. You have a greater impact on your market. So, let's look at 4 myths that hold people back building a level 3 business Myth 1: It's too risky. Is starting your own business really so risky? Let's look at the facts. Fact: According to most credible studies, a generic business start-up that has at least one employee has a roughly 70 percent chance of still being in business after two years (the way most studies define "success" for a start-up business). More than 50 percent are still in business after five years. And these numbers are misleadingly low in most instances. Why? Because the data doesn't account for businesses that close for legitimate reasons other than "business failure"— reasons such as health issues, the desire to start a new business, or other personal reasons. These statistics are a source of encouragement. After all, if 70 percent of new business owners can succeed through the first two years and at least half make it through year five, imagine how much better your odds are when you tap into the support, training, and input from resources such as the Business Accelerator Mastermind community. Myth 2: It will consume your life. Yes, launching a new business is intense. So are the Level Two years of establishing, grooming, and growing your company. But when you understand the Level Three Road Map, you see that as you grow your business, you not only can but must build it to be increasingly less dependent on you. That's why we're encouraging you to build a business, not a job so that over time you can transition your business away from needing you on a daily basis. Myth 3: You've got to stay in control. Control is a trap that will wrap your business around you, making it grow progressively more dependent on you. Instead, learn to build your business with the systems, team, controls, and scalable solutions in place that enable it to operate independent of your autocratic control. Myth 4: It takes a lot of money to launch a new business. In the past it did take quite a bit of capital to establish a new business. But technology has changed the playing field, giving new-comers easier and less expensive access to businesses than at any other time in history. Links and Resources: Metropole's Business Accelerator Mastermind Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Some of our favourite quotes from the show: "I am still involved, because I enjoy it, because I'm having fun." –Michael Yardney "I guess one of the reasons many of us get into business isn't just to have a job to get money, but to leave an impact, leave a legacy on your community and on the world." –Michael Yardney "Hard work isn't going to be enough to get you out of the rat race." –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 so many predictions about what's going to lead to property price growth in the future, but today with Pete Wargent, I'm going to explain to you a demographic tsunami that's going to change our property markets, and one that you really must understand if you want to own the sort of property that's going to outperform in the future. I'm also going to discuss the 7 signs of a shonky property guru. This came from a game I played over the weekend. Listen in to find out more. Then in my mindset moment, I'll explain why being rich is a choice. Yes you have a choice. If you want to, you can become rich, and I'll explain how. This demographic Tsunami will change our property markets There's no shortage of housing forecasts at present, and many of them are a bit scary. And what this means is that many investors are making decisions based on the media instead of the fundamentals. But there's one big driver, a veritable tsunami that the property pessimists seem to have forgotten. It's not our economic growth and it's not jobs growth, it's a demographic tsunami that's going to hit us according to Pete Wargent. Sydney, Melbourne, and Southeast Queensland take up the big chunk of the population growth, about 400,000 per annum Because Australia's visa programs are tilted to the under-30s, there's an enormous surge of people in the 25-34-year-old age bracket, the typical first homebuyer age Population growth is important, but so is household formation Many first homebuyers will initially live in apartments Younger people are congregating in the inner suburbs, especially Sydney and Melbourne Younger people want to live in modern accommodation that is close to amenities and lifestyle, but not in high-rise towers Owner-occupiers drive the market and investors create the booms in-between Australia's population is headed toward about 30 million over the next decade up from 25 million Trends that are going to drive property values up over the next decade: Close to amenities Municipalities where gentrification is occurring Walkability Easy access to public transport The rise of electric vehicles Melbourne will overtake Sydney in population over the next decade 7 Signs of a shonky property guru They tend to brag about their achievements and talk themselves up They claim their "secret techniques" can work for anyone They don't warn you about the risks or the possibility of failure They say you can get involved in property with little or no money Their testimonials sound too good to be true They pretend to be mentor when their aim is to sell you property They suggest you can amass a large number of properties in a short period of time Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Pete Wargent Some of our favourite quotes from the show: "In the middle is where a lot of people are going to want to live." –Michael Yardney "Over the years I've learned that becoming rich starts with something as simple as the thoughts that you put in your head." –Michael Yardney "The minute a guru starts mentioning how successful they are, how wealthy they are, how happy they are, my alarm bells tend to go off." –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 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. Maximize 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.

In today's show, we're going to talk about the future of our property markets. It's important to understand what the markets will be going over the next five, ten, or fifteen years and what sort of properties will be in continual strong demand so that they outperform the averages. I'm going to do talk about that in two separate segments. Firstly I'm going to explain an important factor shape our futures, and it's not the normal demographics I talk about. You'll be surprised. In the second segment with Dr Andrew Wilson, we're going to talk about the apartment markets. Because we've had a building boom in apartments, many people said we had an oversupply that was going to lead to a crash. In some segments of the market that didn't occur, but in other segments it did. Also, in my mindset moment, I'm going to tell you about the first car, and what that has to do with success and money. This will shape the future of our cities I'd like to have a chat about one of the major factors that's going to shape our cities and property markets in the future. Property investing is a long-term game, and you want to own the kinds of properties that are going to grow at wealth-producing rates of return in the future. Many people are saying that we can't have the same sort of capital growth that we had in the last 10-15 years over the next decade or so. It's just not possible. There are so many factors that could be involved that I don't want to predict exactly what capital growth will look like in the future. But I do want to suggest that what we should be looking for are properties that are going to outperform the averages. The significant growth in our capital cities over the past couple of decades came about because of two major factors: A significant drop in interest rates Many households moved from single income to two-income households What's ahead in the future? A period of significantly lower interest rates, at least for the next decade Wages growth will remain low, despite strong job creation and low unemployment levels Despite business profits and the low unemployment, wages are not going up. Workers are not only taking home less money, but they're getting less bang for their buck. I see some major workplace changes on the horizon. A lot of existing jobs won't be needed in the future. More and more jobs will be done by fewer people. An accelerated hollowing out of the middle class There will be more lower paying jobs, temporary jobs, and casual jobs. Don't blame Big Brother or the government, though. A lot of this has to do with Artificial Intelligence coming. A lot has to do with offshoring of manufacturing and other jobs. But it's all changing. Michael Matusik created a great table where he explains the difference that he sees amongst the distribution of different jobs in Australia moving forward. He classes people as being either high-income earners, low-income earners, or middle-income earners. The trends are more important than the exact figures, but he suggests that over the last 25 years or so, 30 percent of us were high income earners, but it's actually dropped to around 25 percent now and will drop to 20 percent over the next 25 years. Middle-income earners were around 50 percent in the past, but have dropped to 40 percent and will continue to drop to around 30 percent. Meanwhile, low-income earners previously made up around 20 percent of Australians now make up around 35 percent and will increase to around 50 percent. Michael writes that 47 percent of existing jobs could be obsolete by 2030, and that demand for the remaining jobs will be halved over the next decade. And most of the jobs affected will be in the middle and higher wage levels. So what does this mean for the property market? Where are property values going to increase at above average rates of return in the future? It's going to be in those locations where people's wages are high and their disposable income is high. There's going to be very little impetus for people to buy more property or add to their homes in the outer suburbs and the lower income areas where people's wages aren't rising, which means properties in those areas aren't going to go up much. On the other hand, in municipalities where people's wages are rising, they'll have more disposable income. They'll buy more new houses and renovate more houses, increasing the property values. So, the factors that are going to shape the property markets in the future are: The jobs people have The disposable income they have Their ability to pay to live in the locations where they want to live. The State of our apartment markets More and more Australians are trading backyards for balconies. They're happy to live in apartments trading space for place – they want to live where the action is. In fact, the wave of apartment construction has changed the shape of our cities. Not only in the CBD and near CBD suburbs, but new apartment blocks have spread to the middle and even outer suburbs. Some say

Why do the rich keep getting richer? What do the rich do differently? Being rich has little to do with money itself, but it has a lot to do with how you think about money. If you want to become rich, one of the first steps is to know how the wealthy think about money and act around money. We've been doing a continuing series on the success habits of the rich. Listen to today's episode to learn about even more success habits of the rich. 10 More Success Habits of the Rich Successful people ask the right questions – questions which put them in a productive, creative mindset and a positive emotional state. They understand that the better the questions they ask, the better the answers they get and the better the results they achieve. Successful people have clarity and certainty about what they want (and don't want) for their life. They actually visualize and plan their future while others are merely spectators of life. While the poor believe rich people are lucky, the Rich know luck has nothing to do with their success. The Rich are voracious life-long learners. They constantly work at educating themselves, sometimes formally and academically; but more often informally by asking, watching, reading or listening and also experimentally by doing, trying, failing and trying again. Successful people are glass half full people – while still being practical and down-to-earth. They have an ability to find the good in everything around them rather than look for faults, problems or stumbling blocks. Putting it another way…the poor focus on obstacles in their way while the Rich focus on all the opportunities all around them. While many people are pleasure junkies and avoid pain and discomfort at all costs, successful people understand the value and benefits of working through the tough stuff that most others avoid. The poor believe they aren't worthy of wealth, while the Rich believe they deserve to be rich. Successful people are adaptable and embrace change. They are comfortable with and embrace the new and the unfamiliar, while the majority of us are creatures of comfort and habit. The poor often resent successful and rich people (you know what I mean…they're waiting for the property market to collapse on those who've worked hard to buy an investment.) On the other hand, the Rich admire other rich and successful people. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Some of our favourite quotes from the show: "I think the rich people recognize that they're lucky because they've worked hard and they made their own luck." –Michael Yardney "It's not just reading, I guess, when we're talking about educating. It's listening to podcasts like this, it's watching videos, it's reading blogs as well." –Michael Yardney "Most of us don't like change to some degree because it's uncomfortable. The more in control you are of all elements of your life, the better you feel. But change is going to occur, so why not be adaptable?" –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.