Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The facts are in again, and they show that the rich are getting richer. If you're a regular listener, you know that we've said that on many occasions. But today I'm having a conversation with Michele Levine, CEO of Roy Morgan, Australia's longest-established research company who recently released an Australian wealth report that's very different from all the other reports. We're going to dig in and explain what's really been going on over the past 10 to 15 years with some interesting findings. We chat about why the rich are getting richer and why the average Australian hasn't moved forward with their wealth over the past decade or so. We're going to explain about men and women and why their wealth has changed. Hopefully, this information will help to put you in the right position to become wealthier. Then, in my mindset message, we're going to discuss why you don't want to cover the world in leather What does that mean? Listen in to find out. Key Takeaways from the Australian Wealth Report The rich are getting richer, but on average, Australians are all getting richer In Australia, the top 10% of people hold 47% of the wealth The bottom 50% hold 3.6% of the wealth The data shows that while Australian's wealth wobbled a bit during the global financial crisis, it didn't hit Australians anywhere near as hard as it hit other countries. Australian wealth has almost doubled since the GFC Just before the GFC, Australians held 4.5 trillion dollars Now it's 8.6 trillion, or 90% more wealth Of Australia's 8.6 trillion dollars in wealth, about 6 trillion is in property Australia's debt is about 1.2 trillion Looking at the median wealth for individual Australians, it's down a little bit – about 2% The top 30% have increased by 60-65% The bottom 30% have gone up by similar amounts But the 40% in the middle haven't seen the same level of increase. Their increase has been around 20%. When you apply a CPI adjustment, you can see why the people in the middle feel less wealthy. Women still trail men in wealth. The average man has $445,000 in net wealth. The average woman has $393,00 In 2007, women had 80% of the male average wealth. Now they have about 88%. They're catching up, but they're not there yet Links and Resources: Michael Yardney Metropole Property Strategists Michele Levine, CEO Roy Morgan Research Institute More details and show notes here: The latest Australian Research is in. Here's what's happening to your wealth Some of our favourite quotes from the show: "Even though there are headwinds ahead, we're still living in a fantastic time and we're lucky to be in Australia." – Michael Yardney "That's how we tend to approach things. We think if we can just get rid of them, or cover them with leather, our pain's going to go away." – Michael Yardney "If you put on shoes when you walk across the boiling sand, the cut glass and the thorns won't bother you." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We have all experienced stress. Whether it is at home, at work, in our own business, stress feels an unavoidable part of our busy lives. It's the unavoidable part I want to focus on. It may be that seeing stress as something we should seek to avoid is what actually heightens its negative impact. Rather than seeing stress as something to avoid or a necessary evil there are ways in which we can look at stress as an opportunity. Stress is actually mental energy that can be harnessed. Stress basics: It's worth remembering that stress is a neuro physiological reaction to danger. When we stress and allow that stress to have a negative impact, we become physically tense. Blood flow is restricted to our muscles and even to our brain. Stanford University's Kelly McGonigal refers to this process and the connection to stress headaches. As our muscles are deprived of blood flow, we often feel tired, lethargic and may even suffer from stress-related aches and pains, not to mention lower resistance to infection, making us unwell. Step 1: change the view and harness the stress Let's go back to when stress was a valuable tool to warn us of danger. When the caveman or woman stepped out of the cave they had to determine whether that rustling in the bush was, in fact, a Sabretooth tiger. Stress in that situation is used to protect, blood brings more glucose to muscles to prepare to fight and more oxygen to the brain for clearer thinking. The point is that when stress presents itself, we are far more likely to be able to cope with it if we can change the view of it, in other words, we turn it from foe to friend. Step 2: Remember Stress builds Resilience Military training shows soldiers how to grow from stress. Dan Pronk talks about the physical, emotional and psychological stress special forces soldiers are placed under. The purpose of that generated stress is to build resilience, to help them to become stronger, learn, grow and to use the stress responses in a positive way. The point here is that if you take the right mindset approach to stress then you can actually use it as a tool to grow and improve. Next time stress rears its head, take a look at the cause and ask yourself how you can turn your approach into one of a challenge to be accepted or an opportunity to be capitalized on rather than a sign of defeat. Step 3: Remember there is always help No matter how diabolically stressful a situation may be it is important to remember that help is ALWAYS available. Thinks about some of the terrible things you see on the TV news, whether its fires, riots. Terror, in each case, as the news shows footage of people fleeing and running for their lives there is always someone running the other way, toward danger, to help! Helping is a huge part of normal human behaviour and not just the realm of professionals, so it's worth keeping in mind that when stress hits, reach out. That's the benefit of a mastermind. Remember these four things: Stress is normal, we all encounter it. Your body's natural response to stress is actually designed to help not hinder Stress can actually help you to grow, learn and build resilience There is always someone who can help. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Show notes plus more here: Here's how to deal with stress in a positive way | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "This is just part of the journey, part of climbing the mountain. And not many people are prepared to take that climb, that makes you breathe harder and your pulse run faster." – Michael Yardney "Rather than when something happens, letting it ruin your whole day, somebody who's learned how to cope with stress keeps these inconveniences in proper perspective." – Michael Yardney "Isolation is one of the challenges successful business people, entrepreneurs, and professionals have, but it's one of the things that causes their stress as well." – Michael Yardney Show notes plus more at the show webpage: Here's how to deal with stress in a positive way | Build a Business, Not a Job Podcast PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

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

Have you ever felt like everyone else knows what they're doing when you have no clue? Do you sometimes believe your success is all about luck, but your failures are all you? Do you wonder when the fraud police are going to come to kick down the door and drag you from your desk? If the answer is yes to any of these, welcome to the imposter club! The good and bad news is that it's not a very exclusive club and almost all of us will be a member of this club at some stage in life. In today's podcast, I'll have a chat with Louise Bedford, who has a degree in psychology, about what's going on in your brain when you feel like a fraudster and how to try and push through those feelings. What is Imposter Syndrome, and how does it affect you? The term "Imposter Syndrome" was coined by psychologists Pauline Clance and Suzanne Imes in the 1970s An estimated 70% of people experience these impostor feelings at some point in their lives Three main components of Imposter Syndrome: Feeling like a fake Disregarding praise and achievements Attributing successes to good luck If investors don't correct their thinking, they'll self-sabotage Lies Imposter Syndrome Tells You Lie #1: You have self-doubt, so you will fail Lie #2: You can't admit vulnerability Lie #3: You're not ready Lie #4: It's a matter of time until you blow it Lie #5: They don't mean that praise, they're just being nice How can you get rid of Imposter Syndrome? Refuse to give your "inner lunatic" any light Practice self-awareness Take credit for small triumphs Keep a journal to record your thought patterns and your wins Seek constructive criticism on small matters Seek professional help if you need it Links and Resources: Michael Yardney Metropole Property Strategists Louise Bedford – The Trading Game To download your Impostor Syndrome special report, click here: To read more about Pauline Rose Clance and take the Impostor Syndrome quiz, click here Show notes plus more here: What you don't know about Imposter Syndrome could hurt you as an investor Some of our favourite quotes from the show: "If you suddenly come into wealth, whether it's through property, whether it's in lottery, whether it's inheritance, I just see people over and over again sabotage themselves." – Michael Yardney "I'm prepared to bet my money that spring's going to come after winter this time too because it always has." – Michael Yardney "I'm prepared to fail knowing that I've just found something that doesn't work, and I'll get to the next level." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

When you look back on 2019, it's going to be a watershed year for property, a year of two halves. At the beginning of the year everyone was very nervous about the future of our property markets. At the end of the year there's so much more optimism. Of course, there are still some economic issues and headwinds ahead for our property markets. But we've recently conducted our annual Property Investor Sentiment Survey, so today, I want to share what 1,800 property investors are planning to do for 2020. This will help you understand where you fit in with a wide range of other Australian investors as well as giving you a glimpse ahead, because investors do move our property markets. Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would-be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. I'm joined today by Sarah Megginson, editor of Your Investment Property Magazine. Investor profile shifted slightly: 2017 - 28% owned 5 or more properties 2019 - this had dropped to just 17% owning 5+ We're not sure whether this reflects a drop in property ownership or a change in the type of people who are replying Rentvestors: 16% of respondents were rentvestors in 2019 Almost half (48%) the respondents would consider using it as a strategy to get into the market Investment Strategy: Investing for "Long term capital growth" and "buy, add value and hold" remain the two most popular property investing strategies Long term growth was the no.1 strategy for 59% in 2017; 51% in 2018; 49% in 2019. Add value and hold the property largely unchanged, 20% in 2017; 19% in 2018; 19% in 2019 - so around 1 in 5 investors adopting this strategy Sentiment: People remain positive, as the majority reported that now is a good time to buy property in 2017 (61%), 2018 (52%) and 2019 (68%). 19% of respondents plan to buy a new home in 2020 – the same as last year (2019). This was down from 23% in 2018 (but still higher than the number planning to buy a new home 3 years ago (14%) Takeaways from our conversation: Watch out for analysis paralysis. Don't buy investment properties for tax benefits. Treat your investment properties as a business. Negative gearing is not an investment strategy. This is the best countercyclical opportunity to invest in a long time. Don't change your long-term strategy because of short-term circumstances. In today's tighter finance environment, living off equity is very difficult. If you want to outperform the averages, you need expert advice. But be careful who you ask. Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Sarah Megginson – editor Your Investment Property Magazine Get the results of the 2019 Property Investor Sentiment survey here Show notes plus more here: Here's what 1,800 investors think is going to happen to property in 2020 Some of our favourite quotes from the show: "Don't make 30-year decisions based on the last 30 minutes of news." – Michael Yardney "The decision to buy a home doesn't depend as much on the market as, I guess, your family circumstances." – Michael Yardney "All the successful people I know don't particularly want to retire, they just want to work at their pace, do what they want to do, when they want to do it, with whom they want to do it, and have choices." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

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

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

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

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