Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

Warren Buffet, often called the Oracle of Omaha is a font of wisdom. He is perhaps the most successful investor in history. So, he knows a lot of lessons we can all benefit from. In today's show we'll dissect 19 life-changing lessons from Warren Buffett. 1."Risk comes from not knowing what you're doing." 2."Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks." Many investors don't review their portfolio – they think their underperforming investment isn't costing them anything 3."It is not necessary to do extraordinary things to get extraordinary results." Property investment is simple – but not easy – buy a high growth quality asset and hold it for the long term So many people delay investing because they think they need to understand how it all works or to have lots of money before they can get started. You don't. Just do it. Do it now. Time is ticking, and the most powerful force in personal finance is compounding interest, but it needs time to work its alchemy. This quote is accurate for lots of aspects of life. You don't have to do an extraordinary amount of exercise to improve your health nor do you have to be an extraordinarily gifted athlete to get started. You don't have to be extraordinarily attractive or have an extraordinary game to ask that cute girl or boy out and find extraordinary love. To get extraordinary results, you just have to do a lot of normal things in the right direction. 4."After all, you only find out who is swimming naked when the tide goes out." Look what's happening in the property markets now – a rising tide lifts all ships, but what happens when the tide goes out? 5."Price is what you pay. Value is what you get." 6."It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." 7."The investor of today does not profit from yesterday's growth." Look for leading indicators, not lagging indicators Some extreme examples are mining towns, Perth and Darwin The same will be said about Hobart in a few years' time 8."It's better to hang out with people better than you. Pick out associates whose behavior is better than yours, and you'll drift in that direction." One way to make yourself better is to spend time with people better than you. At whatever it is you want to be better at. If you want to get in shape, join a running or cycling club. If you want to eat better, only eat with people who already eat well. 9."It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." 10."Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars." 11."If you get to my age in life and nobody thinks well of you, I don't care how big your bank account is, your life is a disaster." 12."I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over." Small improvements, over time, can make a monumental difference to your habits and your life. 13."You only have to do very few things right in your life so long as you don't do too many things wrong." No one can be good at everything all the time. Everyone can make mistakes. But what you are good at and where you make your mistakes is what counts. If you invest early and often, you don't have to have a big, impressive career making tons of money. 14."Rule No.1: Never lose money. Rule No. 2: Never forget rule No.1." 15."I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." When people get greedy, prices go up. When they get fearful, the prices go down. If you follow the herd and get greedy, you are likely to overpay for something that has an inflated value. If you go against the herd, you can get a great deal. 16."Our favorite holding period is forever." "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value." 17."Never invest in a business you cannot understand." 18."Someone's sitting in the shade today because someone planted a tree a long time ago." Long-term thinking (and investing) and planning allow us and others to reap the rewards in the future. If you saved up $500 and opened a Betterment account today and added another $500 a month ($6,000 a year) and earned an average of 7% for the next 20 years, you would have more than $265,000, over a quarter of a million dollars! If you got a late start and doubled those dollar amounts, $1,000 to start and $1,000 a month ($12,000 a year), but halved the amount of time to ten years, at the same 7%, you would have just over $179,000. There is no substitute for planting that tree early. 19."Diversification is a protec

In today's technology age, property forecasters are armed with all of the information in the world. So why do they keep getting property market predictions wrong? That's one of three topics I'll be discussing in today's show. I'll also be talking about some recent statistics that explain a segment of the property market that you really want to avoid. This is one area of the property market just doesn't work. Additionally, in today's mindset moment, I'll talk not about being successful, but about why you should embrace failure. These stats show why you really must avoid off the plan apartments You've heard me say it before, but now the stats prove my point. Off the plan apartments make terrible investments! Analysis by BIS Oxford Economics reports that of the apartments sold off the plan during the past eight years: Two out of three Melbourne apartments have made no price gains or have lost money upon resale. And this is despite record immigration and a significant property boom. In Brisbane about half these apartments bought off the plan are selling at a loss, or at no profit. In Sydney, it is about one in four apartments bought since 2015 are selling at a loss, or at no profit. In other words, more investors in off the plan high rise apartments have lost money than have made money. And of course, there are all those investors sitting on the apartments which are continuing to fall in value, but they haven't crystallised their loss yet. In 2018, 98,000 apartments were completed across the country and 65,000 in NSW alone, according to ABS figures and the situation is only likely to worsen considering the pipeline of projects still being completed. According to the BIS research, resales of apartments within a three to five kilometre of central Sydney, Melbourne, and Brisbane have realised consistently lower prices than established apartment resales. To make things worse... Today with falling property values a large portion of these off the plan apartments are completed they are valuing in at less than contract price at a time when nervous lenders are demanding a bigger deposit from buyers. This double whammy will result in more off the plan investors having difficulty settling their purchases leading to rising defaults on settlements and major discounting by investors trying to get out of their purchases and developers trying to move their stock. According to RiskWise, Brisbane's inner-city apartment market has about 10,000 more homes in the pipeline than it should have, suggesting the city is expected to face more defaults on settlement. And there are long term problems as well... There is no doubt that all those off-the-plan residential property developments have redrawn the skylines of our capital cities and many parts of inner and middle suburbia over the past decade. The spread of high-rise living out of our CBDs to adjacent suburbs as well as into outer lying suburban strips has been remarkable. But... Many of the tiny inner-city apartments built during the boom of the past decade are unlikely to meet the needs of Generation Y as they grow older. Sure more and more of us want to live in apartments - but not ones that are so small and ones that lack amenities Poor construction techniques, particularly the use of inflammable cladding, will devalue many apartment blocks. The high-profile structural problems of the Opal Tower is likely to be only one of many stories of building defects But the biggest risk for off-the-plan units are the proposed changes to negative gearing and capital gains tax if Labor wins government. How investor mindset moves the markets If they're armed with all the research available in today's information age, why can't economists agree on where are our property markets are heading? In fact, a better question would be – why do so many get it wrong? The simple answer is that market movements are far from an exact science. The fundamentals are easy to monitor. Things like population growth, supply and demand, employment levels, interest rates, affordability, and inflationary pressures. However, one overriding factor that the experts have difficulty quantifying is investor sentiment. And that's what's really been behind market movements of late. I've found that investors often suffer lapses of logic when investing and many of their investment decisions are driven by emotion. For example, we tend to extrapolate the present in the future. When things are booming, we tend to think the good times will never end and when the market mood is glum, we have difficulty seeing the light at the end of the tunnel. Think about it…when the media is full of reports about property prices falling and an impending housing crash, many investors become scared and sit on the sidelines, believing the end of property is nigh and things will never improve, when in reality much of the risk has been removed from the market. Conversely, when property markets are booming and stories of investors seemingly making lar

The nation's housing markets are set to be reignited with a stimulus package focused on winding back lending restrictions and lower interest rates fuelling economic growth, in tandem with tax cuts and increased infrastructure spending. While these are positive moves that will instil confidence, there are still some underlying issues that need to be discusses and that's what I chat about in this week's Property Insiders show with Dr Andrew Wilson. Listen in as Dr. Wilson discusses the Big Three Macro Drivers that now point inarguably to a rate cut… 1.Wages Along with most other advanced economies, Australia's has failed to ignite wages growth over recent years despite the lowest interest rates on record and a strong labour market performance. This has been a severe constraint to consumption and overall economic growth. Latest data shows no sign of a revival in wages what remains low and stagnant growth. Inflation Low wages growth and weak consumption has logically constrained prices growth which has remained well below the RBA target range of 2-3% annual growth for years now. The latest data shows inflation now flatlining. Jobs With the jobless rate having risen to 5.2 per cent last week, but employment also stronger with 28,400 new jobs created in the month of April, a dilemma has formed for the RBA on how best to interpret such employment data. The RBA has remained stubbornly fixed to the theory that low unemployment and strong jobs growth will lead to incomes and prices growth. The national labour market after a lengthy period of strong performances is now starting to deteriorate, influenced clearly by the anti-housing market and anti-residential development policies of the Reserve Bank and APRA the financial regulator. This is the now the final straw for the clearly belated RBA backdown on predicted rate direction, with wages and prices still dormant with the labour market now showing clear signs of deterioration that are likely to be sustained. Things are clearly looking up for the Australian housing market Watch the video of our chat here: Are our housing markets set to ignite? Property Insiders VIDEO Dr. Andrew Wilson – www.MyHousingMarket.com.au

Australian property markets are in a slump and the media is full of stories and headlines full of doom and gloom. Is the media just reporting on the property market downturn? Or are they helping to create it? That's one of the topics I'll be discussing with Dr. Andrew Wilson in this week's Property Insiders chat. Listen in to get a better idea of what's going on in the background in the media and in our property markets. But first, in my mindset session, I'm going to share with you five mistakes that a lot of people make that prevent them from becoming financially free. While getting financially free is about the money, it's more about the money habits that many people have. You might have them yourself or know other people who have them. These habits are what stop people from achieving financial freedom. The top five 'financial mindset mistakes' you're probably making Becoming financially free is about your habits. It's not about getting lucky at the Casino one night or a spectacular financial investment that went your way. It's about making good decisions, day in and day out, and continuing to make those decisions over a long period of time until it becomes a habit. This means following a few rules on what we allow ourselves to think and dwell upon. If you can avoid adopting any of the following common mindsets, you'll already be ahead of the game: MINDSET 1: Relying on a wage to get wealthy MINDSET 2: Thinking investing is too hard MINDSET 3: Thinking money just causes problems MINDSET 4: Thinking you don't deserve it MINDSET 5: Being afraid of making a mistake Ask yourself: have you ever fallen into one of the above mindsets? I bet it's held you back. The good news is that there's always time to change your mindset. Money doesn't discriminate – it doesn't care who owns it. So why not have your share? Is the media creating the current property downturn? We're suffering a crisis of confidence and in my mind, the media has a lot to answer for. Is the media reporting consumer sentiment or is the media's negative sentiment creating a crisis of confidence? You can't buy a paper or go online without a headline warning us that property Armageddon is around the corner. Sure, there's a credit squeeze, but the average consumer has lost their confidence because of the media. And the media keeps looking for experts chasing a headline. Listen as Dr. Andrew Wilson chief economist at and I discuss: While the fundamentals are relatively easy to quantify and examine – consumer behaviour is the X factor – hard to predict Worse with the 24/7 news cycle The media loves hotspotting – it's a bit like stock picking The market turned around last year after that famous 60 Minutes program in October last year. Martin North gave 4 scenarios but they honed in on the worst scenario Many of those who make predictions don't have skin in the game – or come from a general economic or stock market background, not property Steven Keen got a lot of publicity in 2008 in midst of GFC said property prices would fall 40% - lots of news coverage – prices fell 5.5% Had to walk 200km from Canberra to Mt Kosiosko wearing a T-shirt saying: "I was hopelessly wrong on home prices! Ask me how. Said he got the timing wrong – he said prices would fall 20% in 2011 and the market boomed – but got lots of publicity Some say I'm permanently optimistic about the property markets – but that's not correct – I'm realistic – in fact, I'm pessimistic about more locations that I think will do well – only 1% of properties are investment grade. 10 million properties in Australia avoid, regional, main roads most suburbs Perma Bears - Doomsayers make money from their predictions Confirmation bias – you read things to confirm your preformed beliefs The rabbit hole of Google – you'll keep reading articles that confirm what you just read. Links and Resources: Michael Yardney Metropole Property Strategists Dr. Andrew Wilson – MyHousingMarket.com.au Some of our favourite quotes from the show: "You won't truly get ahead by working for somebody else." –Michael Yardney "True wealth isn't just about how many properties you've got or how much money you've got, but there's no doubt that having money helps get rid of a lot of your troubles." –Michael Yardney "Don't compare your Chapter One to anyone else's Chapter 12." –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 election is now over, and to the surprise of many, Scott Morrison will remain our Prime Minister. So, how will the outcome of the federal election affect the value of your home and our property markets? How will it affect our economy? That's what I discuss with Dr. Andrew Wilson, in today's show The 2 big unknowns are out of the way - the Haynes Royal Commission and the Election Is it business as usual or will our property markets pick up now? Listen in as we discuss: What to expect next for our real estate markets When the next interest rate movement is likely When our property markets are likely to turn Plus lots more. You can watch this video of this discussion by clicking here.

What's more valuable to you - time or money? Well, you can use your time to create more money. But you can't use money to buy more time. That makes time the more valuable commodity. In today's Build a Business Not a Job podcast, I'm going to have a chat with Mark Creedon about time management and investing your time like it's money. Even if you're not in business or planning to go into business, I've found that we all face the same challenges of trying to squeeze more into the day. Mark's coaching has helped me and the team at Metropole better manage our day, and the information on this show will be valuable to you as well. Listen in as we talk about how you can treat your time as if it were money. Some of the Topics We Discuss in This Episode: How often business owners talk about not having enough time Where to start with time management Planning your day Setting up a morning routine Batching your time Why you should avoid multitasking Setting time frames and saying no Scheduling phone calls, emails, and other interrupters for specific times of day 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: "One of the biggest excuses I've found business owners give for not being able to work on their business, not having a business but actually having a job is, "I just don't have enough time to do this."" –Michael Yardney "Once a week the phone tells me how many hours I'm spending on it, as well as what I'm doing. Very interesting statistics." –Michael Yardney "So what I've learned from you with batching time is set aside fixed time for the big interrupters. Batch your phone calls, batch your emails." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

How will Australia's property markets change over the next decade? Where will our property markets be in 10 years' time? What will they look like and what are the major factors that affect our property markets over that time? Now they are some good questions – aren't they? Listen as Ahmad Imam and I discuss what we expect to happen to Australian property in the next decade You'll hear us discuss... The major trends that will affect our property markets over the next decade including: Demographic trends Population growth – household formation How we want to live Where we want to live Economic trends We're transitioning from a manufacturing country and a resource-led economy to an economy based on service industries What will this do to where job growth will occur – wages growth will occur – obviously affect housing How we're going to invest in a lower inflationary and wages growth environment How the forecast strong population growth will affect us – it's not all good news – there certainly are some challenges ahead Population growth and the wealth of the nation will underpin property values – we need both. Over the last year, the annual growth in Australia was estimated to be almost 400,000 people. Around 60% of this growth is due to immigration, but now there are moves to reduce the cap on Australia's permanent migrant intake to 160,000 per annum, but the overall pace of net overseas migration is faster than this, partly accounted for by international students. What are the implications of these changes and where all these people are moving to? Why population growth alone won't create economic growth, and what is really needed. A big demographic trend that will shape our property markets, but doesn't seem to be mentioned much. Our aging population means we have more one and 2 people households, meaning the type of property that will be in continuous strong demand will be different in the future with more people trading backyards for courtyards and balconies. More single older people, more DINK's, more empty nesters, more young singles getting married later. Smaller average household size means we need more dwellings for the same number of people Where the best investment opportunities will be over the next decade and why. - You'll have to watch the video to get my recommendations. Wealth Retreat 2019 We also discuss Wealth Retreat 2019 which be held on the Gold Coast on June 8th to 12th. Click here to find out more and register your interest By the way... Wealth Retreat is not really a property seminar, even though we do spend a lot of time talking about property. Wealth Retreat is about creating lifetime wealth and leaving a legacy. It is aimed at already successful property investors, business people and entrepreneurs. We have Australia's leading faculty of property, tax, finance, financial planning economic and business growth experts. I've found many of the attendees from previous years felt isolated in their wealth creation journey and by joining us they suddenly developed a peer group of like-minded people. Find out more at WealthRetreat.com.au image how you will be different after 5 days immersed with a room full of successful movers and shakers. You can also watch the video of this recording here - My Property Predictions for 2030 Links and Resources: Michael Yardney Metropole Property Strategists Ahmad Imam- Metropole Property Strategists Sydney Wealth Retreat 2019 Some of our favourite quotes from the show: "If you came back to Australia after a decade of visiting overseas ten years ago, you wouldn't recognize the shape of our cities." –Michael Yardney "Fortunately, we're creating more jobs – more importantly, full-time jobs – and our unemployment rate's dropping." –Michael Yardney "Town planning regulations are going to need to change to allow us to build more appropriate accommodations – more townhouses, more medium-density, low-rise density accommodation." –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.

Labor has proposed $200 Billion worth of new taxes. That's a staggering amount – almost unfathomable. The numbers are so large they are almost meaningless unless of course they are explained, so I'll try and break them down. Loss of negative gearing benefits This has received a lot of publicity recently and it has been revealed that Labor has made a number of incorrect basic assumptions in formulating the potential benefits of the proposed taxes. Plus, they seem to have forgotten how ordinary mum and dad investors are providing housing for renters. Some other things they seem to have forgotten include: Many property investors are ordinary Australians earning about $80,000 per year. These are not "greedy investors." The Government spends about the same on Public Housing ($4.7 billion) as they do on Recreation and Culture and the trend is less and less each year. Someone (you and me) has to take up the slack. It is said that the loss of negative gearing will benefit the government by $3 billion per year (and this figure now seems to be significantly overstated); but p investors spend $44 billion per year to own and maintain these properties. In most businesses the initial years start off with losses and this is the same for property investors. The benefit of negative gearing is what all investors and business owners receive when they spend more than they receive to build up a business which will become profitable and pay tax. There are 400,000 public houses in Australia compared to over 3 million properties owned by investors. If 10% of investors leave the market, then the Government will need to step in and spend more than the tax saving from disallowing negative gearing. Loss of this tax benefit to investors could add over $5,000 to a property investor's cash flow which would require them to increase rents on average by over $100 per week. Just talking about this policy has reduced house prices due to the uncertainty. So who knows what eventually implementing the actual policy will do. The policy by Labour is specifically designed to help reduce house prices (your home) so that 10% of housing buyers, being first home buyers can afford to get into the market. The Labour Government is punishing 90% of home owners so 10% first home buyers may be better off. Electric cars Labor wants 50% of all cars to be electric within 10 years. Assuming many cars will not be suitable for electric drive i.e. farm vehicles, long distance driving, Utes and 4-wheel drive cars then over 75% of passenger cars will be taxed if not electric. The proposed tax on petrol cars will be over $2,000 per year as they emit more than the 105 grams of carbon. The loss of the cash back on Franking Credits Australian who own shares in public companies have their individual tax on dividends pre-paid by the company. When these share owners receive their dividend (their share of the profits in the companies they partly own), they have the value of the pre-paid taxes (paid by the company) taken into account. If the shareholder's tax rate is higher than the tax taken by the company (and paid to the government) they will pay a top up tax. If below they get a refund. It is proposed to take this refund away. This is the same as denying you a tax refund if you overpay your PAYG on wages. In summary: Labor proposes to tax an additional: $57 billion to retirees $31 billion on property investors $30 billion on businesses using trusts $34 billion on higher superannuation taxes $5 billion from halving the capital gains tax discount $2 billion by limiting what you can spend on accounting and tax services. Plus, many more What's next? The Greens and the ACTU would like the introduction of an inheritance tax. What's left? How long before your family home will be taxed? Links and Resources: Michael Yardney Metropole Property Strategists Ken Raiss – Metropole Wealth Advisory Why not learn more about Ken Raiss' services at Metropole Wealth Advisory by clicking here Some of our favourite quotes from the show: "If they follow the guidelines that Labor is proposing and they only buy new or off-the-plan properties, they're going to suffer because we know the track record of new and off-the-plan properties has been horrific." –Michael Yardney "Here the government hasn't really been providing much public housing, and they have been depending on people like you and me to do that." –Michael Yardney "People have got to make their own decisions about what they want for their life and for their country, and it's not just how much money you've got in your pocket, it's what you're doing for the community and the country as well." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

What's the biggest differences between the rich and the poor? And I don't mean the fact that the rich have more money. There is a lot more to it than that. That's what Tom Corley and I discuss in this week's Podcast. I've written so much about the big differences between the Rich and the Poor over the years. In fact, I've written the book Rich Habits Poor Habits together with Tom Corley which explains our findings in detail. I've recognised if you want to make a change in your financial life, it must be done in the following 3 steps: Awareness —it starts within you – recognising your disempowering beliefs and your " Poor Habits" – your thoughts and actions. Removing — your disempowering beliefs and your "Poor Habits" Reprogramming — working on your beliefs and habits so you can create a new way of being. The good news is anyone living in modern developed western countries can become rich today. Listen as I ask Tom the following questions: How many in your study were self-made millionaires? You found being rich eliminates 67% of Life's problems - how's that work? How much of a role does luck play? We also discuss the following habits of successful people: All success requires passion All success requires unrelenting persistence All success requires taking risks All success requires action All success requires hard work All success requires a team of apostles who believe in you and your dream All success requires continuous daily self-education All success requires a leap of faith All success requires patience All success requires good daily habits All success requires an optimistic, positive mental outlook All success requires the development of processes that work All success requires adding value to the lives of others All success requires creating a herd of followers All success requires stepping outside your comfort zone All success requires laser-like focus All success requires developing unique skills and the acquisition of knowledge specific to your industry All success requires creating the opportunity for luck to occur All success requires the ability to pivot around obstacles, pitfalls, mistakes and failures All success requires the ability to survive until you thrive So now it's your choice – who would you rather be like? If you want to be rich do what rich people do. If you don't then do what poor people do – it's that simple. Rich Habits Poor Habits Wealth Retreat

Are you concerned that values have dropped since you bought your last property? Wondering how to find investment grade suburbs? That's what we discuss in today's show. Plus I have a very special Mindset Moment for you. If you bought property at the top of the property market and you're concerned about falling property values, you'll want to hear my chat with Ahmed Imam. We'll be talking about what you can do and whether you need to be worried about your property values falling. Even if you didn't buy at the top of the property market, our conversation will be of interest to property investors and homeowners who have concerns about their property market values. I'll also talk to Brett Warren about how to find an investment grade suburb. Some suburbs just seem to outperform the others. But are they the ones that show up on those lists of top performing suburbs? We'll be discussing just how valuable those lists really are. What Should You Do If You Bought at the Top of the Market? Ahmad Imam No one can pick the exact top or bottom Owners who are now realising that they bought at the top shouldn't panic Buyers need to remember that property is a long-term journey There's no need to check the performance of the property market frequently. Unless you're getting ready to sell, once a year is enough Sydney and Melbourne are the powerhouses of economic growth in Australia. It won't take long for the property markets to rebound in those places Are you looking for an investment grade suburb? Brett Warren You know…one where properties are likely to outperform and I'm not talking about hot spots, but suburbs that will outperform in the long term. Well, they are there if you know how and where to look. Recent property data has shown there are some very mixed results for Brisbane houses over the last 12 months. Depend on where you find your data, the average house price in Brisbane has grown anywhere from 0.1% to around 1%. But there are a number of suburbs that have achieved significantly higher growth than the average. In fact, there are a number of suburbs achieving growth in the double digits. I check to see that: The local economy is providing new jobs. A thriving local economy encourages people to move there and ensures locals have the job certainty and the money to buy or rent properties. Local population is growing Apart from more people, it's important to have the right demographic moving to the area – people in family formation stage of their lives and people of working age rather than an aging population. Local infrastructure spending When the local council plans to improve roads, public transport options and local amenity this create more local jobs, which boosts the economy and leads to more people moving to the location. The Usual Suspects It's interesting, but you will be able to identify these suburbs as they make the same list every second or third year. They always seem to be powering ahead. They make the list for two reasons – supply and demand. When I say supply, it means there is less availability of land and therefore properties are in short supply. And demand comes from a number of factors, including: People want to live in these suburbs – They are aspirational suburbs (as opposed to many of the cheaper suburbs where people chose to live because that's all they can afford. They are close to employment hubs where more high paying jobs are being created These suburbs are gentrifying – people with higher incomes are moving in People living in these suburbs have higher wages growth than the average for the state There are local lifestyle precincts – another reason for attracting a gentrifying demographic There is easy access to public transport There are strong school catchments – a magnet for families Demand does not wane for these types of locations and they are not building any more of them. What about all those new Suburbs? Sometimes new suburbs make the high growth list once, but they rarely make the list again. They start out as acreages or even small farms that are acquired, subdivided and developed into smaller parcels of land – smallish sites for new homes. Growth is these locations generally tends to be more physical growth, with towns, shops and schools, etc. rising from the ground in a short timeframe. One day a large acreage property, 6 months later there are 100 new house and land packages. Because there is an abundance of land still to be developed there is no shortage of land and an abundance of supply, sometimes lasting a decade or more. These areas are generally a lot further out from the CBD and usually have inferior infrastructure and public transport and rarely have any of the investment fundamentals, leading to a lack of capital growth. Sure, these suburbs are more affordable for young families, but the prevailing demographic in these locations tens to have lower wages growth than those living closer to the CBD, another reason these locations suffer from poor capital growth. A Clea

Do you know that if Labor comes into power, they're going to make us one of the highest-taxed countries in the world, and there are at least 6 taxes that could affect you. Ken Raiss and I are going to discuss them on today's show. But first, I'm going to explain why there are so many property pessimists around predicting a property market crash. You've seen the headlines predicting markets crashing and home values plummeting. Now listen in to find out what's driving the negative news. Property Pessimists The property market is going to crash! That's the type of headline the media has been using to draw you in, isn't it? If they write something like "The long term property market fundamentals are sound," it's unlikely you would have bothered to click the link. So, have you wondered why are there so many property pessimists when long term optimism is the most realistic stance? The media loves to tell us that the property market will crash and gives plenty of air time to commentators with this view. Now there's nothing new about this. In fact, part of this is natural — we've evolved to treat threats as more urgent than opportunities. Warren Buffett wisely said: "In order to succeed, you must first survive." But all the pessimism about our property markets and the economy takes things to a different level. I've found that if you say there's going to be a property downturn and you'll get retweeted. If you say we'll have a big downturn, the newspapers will quote you. But if you say we're nearing the next global financial crisis and that property values will fall 40 percent and you'll get on television. However, if you mention that good times are ahead, that certain property submarkets will finish the year higher than they started, or that our property markets are not going to crash, a common reaction from commentators and spectators alike is that you are either a salesman or you don't understand the true risks. Here are 3 thoughts about what's going on here. Money is universal So, if something bad happens it tends to affect everyone, albeit in different ways. That isn't true of, say, the weather. A hurricane barreling down on far north Queensland poses no direct risk to 95% of Australians. But a recession barreling down on the economy could impact every single person – including you, so you pay attention. And of course, this also applies to the property market where around seventy percent of Australian households own or are paying off their home. Pessimism requires action Bad new means you may have to sell, or run away, or hide! On the other hand, optimism is mostly a call to stay the course. It's not nearly as urgent. There's a lot of money to be made in the property advice industry Currently, there is no regulation of the property investment advice industry and while there are some very professional people and organisation around to help investors, because of the potentially large amounts of money involved the property advice industry has attracted an army of truth-benders promising the moon. A big enough commission can convince even honest, law-abiding salespeople that the dud properties (we're looking at you off the plan apartments and house and land packages) they are offering are in their customers' best interests. So they promote optimism with stories like properties never drop in value, or (all) properties double in value every ten years, or the tax depreciation and lack of maintenance of your new apartment make it a great investment. And over the years too many people have been bamboozled by these property spruikers version of optimism. By the way…most promotions of optimism are realistic But, of course, not all are. Just so you understand what optimism is — real optimists don't believe that everything will be great. That's complacency. Optimism is a belief that the odds of a good outcome are in your favour over time, even when there will be setbacks along the way. I've read that the simple idea that most people wake up in the morning trying to make things a little better and more productive than wake up looking to cause trouble is the foundation of optimism. Now that's not too complicated. But it's not guaranteed, either. It's just the most reasonable bet for most people. So, don't become a property pessimist, despite what the media try to sell you. Instead, become a property realist. 6 New taxes: No one likes paying more tax. With the odds shortening for a Labor government it's important for real estate investors to understand how a Labor win could affect their property investments. Land Tax Did you know you'll have to pay up to 6 extra taxes if Labor comes to power? If Bill Shorten becomes our next Prime Minister, millions of Australians will have to pay higher taxes. And he's not just after "greedy property investors." If he has his way Australians will be amongst the highest taxed people in the world. Here are some of the tax hikes the Labor Party is proposing The top tax rate would rise to 49% A hi

Want to know what will make me a better property investor in this difficult market? I expect that the property market is going to pick up. And I expect that the Melbourne and Sydney property markets will go gangbusters. I have no idea when this will happen. Now just to make things clear…those aren't contradictory statements. The first is an expectation, the other is the rejection of a forecast. And if you want to be a successful property investor, you're going to have to understand this important difference. It's one thing to look at history and see that the property market cycles with some frequency and then form a baseline of what to expect in the future with this knowledge. However, it's quite another thing to predict the precise timing of the turning points in the property cycle. And it's another thing entirely to devise a strategy that reacts to those predictions. Property analysis isn't black and white, yet some people believe they can predict markets and they tell you about (or sell you into) the next property "hot spot." There's an important grey area, which is expecting certain events to occur without having an opinion on exactly when, where, why, or how. I've been investing for over 40 years now and in that time there have been 8 significant property cycles. I can use this as a very rough rule of thumb for the future, based on the idea that we've got even more positive fundamentals to drive our property markets than past generations had. While there are many sound fundamentals underpinning the long-term prosperity of our property markets, two of the big ones that give me comfort are our significant population growth and the wealth of our nation. This reassures me that my long term plans are sound and based on what has always worked – rather than trying to pick what is right for the current market. Now I have an expectation: If I plan on investing for the next 30 years, I should count on things getting ugly at least six times. Maybe it'll be a little more, maybe less. But I have an expectation, a rough idea of how the game works. Yet it's not a forecast. A forecast is, "The property market will turn in the second half of 2019" or "Australia will have a recession in the first half of 2021." That's precision, with a disregard for both the history of people making such forecasts and the events that cause these turning points which, a lot of the time, is something that can't be foreseen. The important difference between an expectation and a forecast is the impact it has on my behaviour. If I expect property booms and property downturns, I won't be surprised when they come. I know they're a normal part of the game. But since I'm not sure when they will come, I won't attempt to do much about it. Attempting to do something about it – trading, timing, buying and selling – is the root of most investors' mistakes. A forecast suggests that you know when something will happen, which is permission to act on it. There's little reason for a forecast other than acting on it. But unfortunately this creates two problems: The false hope of knowing exactly when the property market will turn. Even the experts keep getting their forecasts wrong. The high-probability of regret from trading around these forecasts. Just see the results all the hot spotters have achieved, or the lost opportunity for those who tried to time the market. In other words… Expectations rather than forecasts make me a better property investor. What does the Federal Election mean for our beleaguered housing markets? So finally we have the federal election campaign underway – what does this mean for our beleaguered housing markets? Home values across Australia's largest capital cities have been falling since they peaked in late 2017. In fact, it looks like this will be the biggest and longest national decline in home values for almost 40 years (or since records began in 1980). Consumers have lost confidence, first buyers went on strike now sellers are holding back unless they really have to sell And while the property markets have started 2019 with a positive note, with more interest from buyers, auction clearance rates rising, the banks chasing more business another hurdle has been put in our way. A federal election and elections create uncertainty and when there's uncertainty buyers put their hands in their pockets. Dr. Andrew Wilson and I discuss the likely implications of the election campaign. Election date is Saturday 18 May This will clearly disrupt a recovering market with agents avoiding auction sales campaigns in the next month At the same time the late Easter and holiday period will see a closing down of the property market at least till the end of April This means the current record decline in seller activity will be amplified over next month Buyers will also be wary given until they know who will win the election The election campaign will end close to the winter market shutdown that commences after Queens Birthday long weekend (June 10

If you're a business owner, entrepreneur, or professional, then this show, the first of a new series, is for you. Do you work 50 to 70 hours a week or more? Not including the time you spend on phone calls and emails at nights and on weekends? Can you go away from your business and return to find that it's made money while you were gone, or does it stop when you do? Are you sure that you have a business? Or has it turned into just another job? In this episode, we'll talk about the concept of a business that works even without you, and how you can begin to get to that point. We'll also talk about the three levels of business and how you can gain control over your revenue and freedom within your business. Some of the Topics We Discuss in This Episode: What can happen when you take a vacation from your own business Whether you really have control when you become self-employed The three levels of business Level 1: When you first launch your business. You have no freedom and no control. You're working long hours because you have to get things done yourself. The business relies 100% on you. Level 2: You have more control, but still no freedom. The business is working only as long as you do. There's no additional revenue coming in when you're not there. Level 3: You have total control and total freedom. You're the owner of a business that runs even when you're not there. Three steps people can take to free themselves from the responsibility of everything in your business 1. Know your role in your business 2. Determine your pit crew 3. Delegate effectively 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: "People leave their jobs to become entrepreneurs, businesspeople, and they don't really recognize that they're trading one boss for lots of bosses. They're called customers, clients, patients sometimes." "I've found most people fall into the self-employment trap." –Michael Yardney "I actually have gotten to the point of having a business, not a job. But that doesn't mean I've retired. Because I've got nothing better to do, I still have fun doing it." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Are you considering buying a new home or an investment property? If so you're probably wondering should you buy now or should you wait? What if prices fall further this year? A better question would be - how important is it to get your timing right and what are the most important factors involved in the long-term performance of your investment property? With my guest today, Stuart Wemyss we're going to uncover what really makes the big difference in a property's long-term performance. Some of the ideas we discuss in this episode: Why Stuart decided to study the factors that affected property investment performance Which variables Stuart looked at and which variables were most important What would happen to your property's performance if negative gearing or capital gains tax change The importance of choosing the right property How Stuart's research fits in with some golden rules in his book Investopoly Play the long game Grow your asset base first and then tilt toward income Set your asset allocation to reduce risk and maximise returns Only invest in 'investment-grade' property Links and Resources: Michael Yardney Metropole Property Strategists Wealth Retreat Metropole's Strategic Property Plan – to help both beginning and experienced investors Stuart Wemyss' blog discussed in this show: How important is it to buy property at the bottom of the market? Stuart Wemyss' special offer: Save 30% off the price of his book Investopoly – Go to https://www.prosolution.com.au/books/ and use the code "Yardney" to get a 30% discount. Stuart Wemyss- Prosolutions Private Clients Some of our favourite quotes from the show: "We're all wonderfully different. We're all unique and we really shouldn't be measured with the same metrics, should we?" –Michael Yardney "For things to come out differently, you have to do things differently." –Michael Yardney "If you can't buy an investment-grade property, the usually the right thing to do is nothing. Just wait until you've got enough money." 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.

Over the years I've spent a lot of time studying rich people, and over the last decade I've personally mentored some very successful people. Along the way, I've become much more successful as well. I've written about success in my books and my blogs, and we discuss these topics in this monthly Rich Habits Poor Habits podcast. This is the second in a series focusing on the Success Habits of the rich. In today's show, we'll continue to look at some of the main success habits of the rich. Success Habits of the Rich The poor believe money will make them happier, while the Rich know that money has little to do with happiness, but it does make your life easier and more enjoyable. The Rich don't blame (what's the point?). They take responsibility for their actions and outcomes (or lack thereof). They know there is no such thing as a rich victim. The poor believe it's wrong for a small group of people (the 1%) to possess most of the money. The Rich welcomes the masses (the 99%) to join them. Successful people are not necessarily more talented than the majority, yet they always find a way to maximise their potential. They get more out of themselves. They use what they have more effectively. The poor believe they must choose between a great family life and being poor, or love and being poor. The Rich know they can have it all. Successful people are solution focused, rather than looking for problems or obstacles. Successful people are fearful like everyone else, but they are not controlled or limited by fear. They use it to empower themselves. Successful people get up early. They know there's no shortcut, so they work hard until they've accumulated a big enough asset base (created their own cash machine) so they don't have to work hard anymore. Now before you get too offended… I'm not making a judgment when I say rich people or poor people – they are terms I use to help clarify the different ways of thinking that 1% of Australian's exhibit from the majority of the population. It's also worth realising… We all have some of these successful habits and we all exhibit some dis-empowering habits. The big differentiator in the see-saw of life is: do you have more of these success habits or more of the dis-empowering "poor" habits. Links and Resources: Michael Yardney Metropole Wealth Retreat Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "I think the point in some ways is that as people get a bit more money, it doesn't always make them happier, so you've got to make your life happier." –Michael Yardney "When you look at the 1%, most of the people listening to this podcast are already the 1% when you take into account the general wealth in the world." –Michael Yardney "The other really important point is this delayed gratification. That's clearly a trait of all successful 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.

While the Labor party have indicated that if they come into power they intend to introduce a number of taxes that will directly affect our property market, the 2019 Liberal Federal Budget made little mention of our property markets. However there was plenty of good news in the Federal Budget and many of the key initiatives will help promote economic growth which will be positive for our property markets. While our economic fundamentals are generally sound, home buyers and property investors are suffering from a crisis of confidence and our housing markets won't rebound until consumers feel more confident about their job security, our political stability, certainty about the tax treatment of property investment and when the media stops scaremongering about a 40% crash in house prices. Fortunately there was plenty in the budget to boost consumer confidence. The proposed tax cuts and giveaways will add to household disposable income Our economy is back on track with a surplus and there are measures in the budget to give small business incentive to invest, create jobs, hire more people and take on more apprentices. So what does the budget mean for property – that's the topic of this week's property insider chat with Dr Andrew Wilson.. Listen as we discuss: Infrastructure investment will help underpin our economic growth not just in our big cities but also in regional Australia as new jobs are created and local resources are used to leave a legacy for future generations. Migration has been reduced to 160,000 per annum (down 20,000) and this is clearly negative for housing and our economy. While these numbers are still robust, it should be remembered that migration has been a clear driver of our economy through jobs growth and better budget outcomes as immigrants are coming here for jobs, they buy goods and pay taxes At the same time the RBA changed its narrative at its April meeting suggesting it is now prepared to support the economy if required. In other words, it will be prepared to cut interest rates if our economy falters or if unemployment rises. This is again positive for property. The bottom line: The Budget will encourage confidence and support house prices, but as it is unlikely to be enough to keep Liberal Party in power at the upcoming election, be prepared for a raft of tax changes that could be negative for our property markets. You can also watch the video - Is the 2019 Federal Budget positive or negative for property | PROPERTY INSIDERS Your Property Insiders: Michael Yardney – Metropole Property Strategists Dr. Andrew Wilson – My Housing Markets

Negative gearing is set to be a key issue in the upcoming federal election. If elected, Labor intends to reform the practice with the aim of improving housing affordability. The Coalition intends to leave negative gearing as is. The problem is Labor's proposed policy will affect every Australian home owner and all property investors is designed to put downward pressure on home prices and improve affordability, particularly for first home buyers. But will it really be as bad for property prices as some media commentators suggest? Maybe not! In this week's show, Property Insiders Michael Yardney and Dr. Andrew Wilson chat about how the proposed negative gearing and CGT changes will affect our property markets You'll also learn about: Labor's tax grab and what it could mean to you. How the proposed negative gearing and CGT changes will affect our property markets Is there really a debt time bomb ticking away? Are migration levels too high You can also watch the video - Property Insiders | Is Labor's Policy On Negative Gearing Bad For Property? – Maybe Not So Bad Now Your Property Insiders: Michael Yardney – Metropole Property Strategists Dr. Andrew Wilson – My Housing Markets

History shows us that our property markets move through a cycle. There's a downturn, followed by a stabilisation phase, then an upturn, then a boom. And then the cycle starts all over again. Now that we're in a downturn phase of the property cycle, I want to share some valuable lessons that I've learned from past property cycles. I'll be explaining what you can do when you find that the property markets have gone a little crazy. I'll also talk about how you can make or lose a fortune in 2019. And I'll share a mindset moment all about acting in spite of feeling afraid. Are you set to gain or lose a fortune in property in 2019? What goes up, as they say, must come down. And segments of Australia's property market are now in the slump phase of their cycle, catching out some naïve investors who hoped the value of their properties would rise forever. This means you will probably lose money in this property downturn Now hear me out. I'm not one of those doomsayers saying our property markets will collapse. I firmly believe the outlook for Australia's property market remains robust and when prices rebound, the value of well-located investment grade properties will reach new peaks. That's because Australia's real estate markets are supported by two solid fundamentals: Our strong population growth, which ensures consistent high housing demand. The wealth of our nation, which means the majority of Australians can afford a property. But between now and the next upturn there's going to be a painful learning curve for some property investors. Those who got carried away during the boom, often because of a fear of missing out, and took on maximum debt not understanding how the cycle works. Of course, you could be the exception. In every property downturn, some strategic investors do well. I kept investing during the property slump of the early 1980s because I didn't know better. At the time there was limited information available and property statistics were only delivered annually – long after the fact. However, in the downturn of the early '90s, during the GFC in 2008-10 and in the slump of 2011-12 my portfolio performed well because I followed a few simple rules that helped me come out on top no matter what the market is doing. So, here's my advice to you: Become financially fluent Learn everything you can about how money, finance and property work and start investing early. While a trusted mentor and team will help immensely, you still need a solid understanding of how things work to make sound decisions, otherwise, you'll be easy prey for the many spruikers. Adhere to a proven investment strategy Follow a time-tested proven system and don't speculate. The problem is many investors find my strategy is too simple and boring. They're looking for something more complicated. Your property investing should be boring so the rest of your life can be exciting. Only buy investment grade properties I think that less than 5% of the properties on the market at present are what I call "investment grade" and will deliver stable wealth producing rates of returns. Sure, there is plenty of investment stock out there, but don't confuse the two. These are built specifically for the investor market and sold by property marketers to naïve investors. They lack scarcity and appeal to homeowners and are sold at a premium with no opportunity to add value. On the other hand, investment-grade properties are in the right location, appeal to a wide range of affluent owner-occupiers, have street appeal and a favourable aspect. Invest for the long term Real estate is a long-term investment, not a way to make "fast money." Growth isn't linear so there will be years when values are flat before they rise again. Ensure you factor insufficient financial buffers, so you won't be forced to sell when the market turns against you. Follow my 6 Stranded Strategic Approach and only buy a property: That would appeal to owner-occupiers as they buy with their hearts (while investors buy with their calculators) and are willing to pay more for a home and consequently push surrounding property values higher. Below intrinsic value – so avoid new and off-the-plan properties which come at a premium price. With a high land to asset ratio – where the land component makes up a significant part of the asset value. In an area that has a long history of strong capital growth and will continue to outperform the averages because of multiple drivers of capital growth and the right local demographic who will be able to afford to pay a premium to live there because they have higher disposable incomes. With a twist – something unique, different or scarce about the property Where you can manufacture capital growth through renovations or redevelopment rather than waiting for the market to grow organically. Focus on value, not bargains Bargains rarely have potential. If no one else wants to buy it today, no one else will probably want it in 5 years' time. Price is what you pay, value

What will the property markets be doing for the rest of 2019? And what can we expect to happen after 2019? In today's episode, I'll be asking those questions of property researcher John Lindeman who joins us to talk about why he disagrees with many of the so-called experts predicting long-lasting house price falls and what he bases his analysis on. During today's mindset moment, we'll talk about winners and losers and what one of the big differences is between them. It's probably not what you think. Finally, I'll have a chat with Adam Nobel, a top selling agent in Brisbane, about how to choose a selling agent to sell your property. Understanding how selling agents work can help you whether or not you're in the market to sell right now. Some of the questions I asked John Lindeman Many so-called experts are predicting long-lasting house price falls - as much as up to a further 25 to 30% in the next few years, but reading your commentary I see you don't agree. Why is that? John's answer: After looking at all the indicators that have caused booms and busts to occur, what we're looking at right now is not similar to the indicators that have caused large crashes in the past. Most experts make their housing predictions based on past performance because they believe the market will continue to perform in the future test in the past, but you have a different view. What are your forecasts based on? John's answer: Past performance can tell us a lot, but you also need to know what the main indicators are. You can use those to predict what's going to happen. In a recent blog you made property forecasting easy – you boil it down to a simple equation. Could you please go through that with us? John's answer: Demand is up (300,000 new residence from overseas and other states arrive in Brisbane Sydney and Melbourne each year) + Supply is down (housing investor finance fell and new dwelling approvals plunged) = Rental Crisis What happened in previous cycles we got to the stage where Capital growth slowed down or stopped? What do you see happening to our property markets moving forwards? Highlights from the conversation with Adam Nobel Why choosing the right selling agent is important The highest profile agent isn't always the right choice for your property What kind of research to do when looking for selling agents Why selling agents need to be local experts How to mystery shop agents Links and Resources: Michael Yardney John Lindeman – Lindeman Reports Adam Nobel – Hugo Alexander Property Group Organise a Strategic Property Plan with the team at Metropole Some of our favourite quotes from the show: "I've found that in general, people fall into one of two groups: those who make excuses and those who don't." –Michael Yardney "When you wake up in the morning, you get to choose which route you take." –Michael Yardney "You'd be surprised how much more the right agent can get for your home – or put the other way, how much the wrong selling agent could cost 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.

Are you interested in getting into property development? If so, the insights in today's episode can help you on your journey. And even if you're not planning on getting into property development yourself, you can still learn a lot about property selection and how the mind of a successful property developer works by listening to the interview in today's episode. In this special bonus episode, you'll hear Dan Gold of Long Property interview my son, Bryce Yardney. Bryce has been overseeing and the property development arm at Metropole for many years. This interview will provide some interesting and useful insights into how successful property development works. Highlights from Dan Gold's Interview with Bryce Yardney How Bryce got into property development How the property development division of Metropole works What Bryce would recommend for an entry-level property development Why the overarching strategy is buy, develop, and hold, rather than buy, develop, and sell quickly Why Bryce focuses on capital growth How Bryce finds a good property for development Why you need a development-friendly council Types of financial metrics people should be focused on when they do due diligence on a potential investment site How to size up a good deal versus an average deal Holding costs through the development period Tips for people who are considering a substantial renovation or development project What happens after a successful development project Links and Resources: Michael Yardney Metropole Property Strategists Bryce Yardney Metropole Dan Gold – Long Property Metropole's Property Development Services Organise a Strategic Property Plan with the team at Metropole Some of our favourite quotes from the show: "I got involved in property development in the 1980s, and I made lots and lots of mistakes, but a rising market carried me through. If you make those mistakes in today's current flatter market, you're going to get yourself into real financial trouble." – Michael Yardney "Getting through is the hard bit – you've got to have the financial buffers, but once you get to the end, it's surprisingly easy to hold onto the completed development. And then, you profit from the strong cash flow and capital growth over the long term." –Bryce Yardney "The more inexperienced you are, the more unsure you are, the bigger contingency you have to allow the bigger the risk margin you have to allow, because you've got to assume you're wrong." – Bryce 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.

Many commentators are worried that the current crisis in consumer confidence will impact economic growth. They suggest that the negative wealth effect of falling house values could lead to a cut in consumer spending and that this plus the collapse in construction activity (one of our biggest employers) at a time of overseas economic headwinds could combine to create the perfect storm which could lead to Australia into recession. In his first public speech for 2019 Reserve Bank Governor Philip Lowe highlighted the issues that are likely to shape the future. Lowe also believes the current slump in our property markets is "manageable" but conceded that now it's just as likely that the next move in interest rates is down as it is likely that we'll have a rise in rates. For what it's worth I think interest rates will be cut twice this year bringing the rate down to one percent. 6 Reasons we're not going into recession Here are 6 reasons given by Governor Lowe as to why we're not going to have a recession: Despite the various political issues and the trade wars creating some downside risks, the world economy and the economies of our trading partners are performing well. Australia's economic growth is forecast by the RBA to be around 3% over 2019 and 2.75% over 2020. This should be enough to see further gradual progress in lowering unemployment. 3. We're creating more jobs. Last year: 212,000 full-time jobs created last year 51,000 part-time jobs created last year Unemployment is falling - at 5% it is now the lowest it has been since 2011 In NSW and Victoria (our two economic powerhouses) unemployment is around 4.25% With the number of job vacancies at a record high, unemployment is forecast to drop further to 4.75% over the next few years. There are finally signs of wages growth ahead A gradual pickup in underlying inflation is forecast as spare capacity in the economy diminishes. Underlying inflation is now expected to increase to about 2 percent later this year and to reach 2¼ percent by the end of 2020. Now I'm not an economist but I see plenty of other positive signs amongst all the pessimism in the media. These include: The next Federal Budget is likely to deliver a surplus for the first time in years. Our population is growing strongly – albeit a little slower than before Australia's population grew by 390,500 people or 1.6% during the year ended 30 June 2018. Natural increase and Net Overseas Migration contributed 39.4% and 60.6% respectively to total population growth for the year ended 30 June 2018 Infrastructure boost - We have a very strong infrastructure investment pipeline mainly coming from State Governments. The next Federal Budget is likely to deliver a surplus for the first time in years. Australia's population grew by 390,500 people or 1.6% during the year ended 30 June 2018. Natural increase and Net Overseas Migration contributed 39.4% and 60.6% respectively to total population growth for the year ended 30 June 2018. The Australia dollar is likely to stay low for some time yet and this is good for our export industries. Our Mining Sector is on the improve assisted by our falling Australian Dollar and increasing mineral prices. This means the big economic drag we have seen from the downturn of the mining sector over the last five years or so from falling mining investment is starting to fade. The Agricultural Sector on the improve – and if we play our cards right we could become the Asian food bowl. Tourism is booming International student education is continuing to be a huge "export industry" for us - up 17% last year. Our Housing markets And while clearly not all the news is good for our housing markets there are clearly some positives that the media tends to overlook. Interest rates are low and are likely to fall further this year as the RBA tries to stimulate our markets. The good news is the RBA has plenty of ammunition up its sleeve but there is always the question of whether banks will pass on interest rate cuts to their customers, and whether they will loosen their tight lending criteria. Residential vacancy rates are tightening Rents are likely to rise The underlying demand for property is still strong but hindered by consumer sentiment and tight credit. There is clearly an oversupply of new apartments in many locations, but the pipeline is slowing down. The big unknown Clearly, we have a mixed bag of economic fundamentals that will interplay on our economy and our housing markets. While these are relatively easy to quantify, the big unknown will be consumer sentiment and currently, that is low and unlikely to change until the outcome of the federal election is known. Having said that, those investors who take a long-term view and recognise that all economic downturns are temporary, while the increase in the value of well-located residential properties in our capital cities is permanent, will be able to take advantage of the property investment opportunities the current buyer's market i

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. I'm joined today by Ahmad Imam, and 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 recognize 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 memorize 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 memorize 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 realize 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 Ahmad Imam – Director Metropole Sydney 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 Some of our favourite quotes

Just over 30 years ago I began my study of rich and successful people. Of course, not all rich people are successful, and not all successful people are rich; but remember I was much younger and more naïve then and wanted it all. I tried to understand why some people were rich while others kept struggling financially. Over the years I attended many seminars, paid mentors and read as many books as I could on the topic of success. I modelled successful people and eventually grew successful myself. It wasn't easy, I've had my challenges in life (mostly self-inflicted) and I've hit rock-bottom, but I got up again, learned from my mistakes and moved forward. And for well over a decade I've mentored over 2,500 successful (and some not so successful) investors, business people and entrepreneurs. In fact, a by-product of this is our top selling book – Rich Habits Poor Habits In it, Tom Corley and I explain how being rich has little to do with the money itself Instead, it has a lot to do with how you think about money. So, if you want to become rich, one of the first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action, and to let the action become natural by thinking the way wealthy people think. We've found rich people share similar habits. While we explain this in some detail in our book, in today's podcast we begin a series where we discuss… 21 Success Habits of The Rich …. The average person thinks about spending their money, while the rich think about how to invest their money. The average person worries about running out of money while the rich think about how to use their money to make more money. Most people believe hard work makes you rich, while the rich know that leverage creates wealth. Successful people don't procrastinate. They don't spend their life waiting for the 'right time' or waiting until they know it all or have figured everything out. The average person believes having a job gives them security. The Rich know there's no such thing as "job security." Most people want to be rich. The Rich are committed to being Rich. (They are very different things.) When things go wrong, the Rich find a lesson, while others only see a problem. The average Australian sets their financial expectation low, so they're never disappointed. On the other hand, the Rich set their financial expectations high so they're always excited. Successful people take calculated risks – financial, emotional, professional, psychological. But once they've built their wealth, they take fewer risks. The Rich consciously and methodically create their own success, while others hope success will find them. The Rich look for and find opportunities where others see obstacles. The average Australian believe life happens to them. They are a passenger, while the Rich believe that they create their own destiny. They are the pilot of their lives. Successful people align themselves with like-minded people. They understand the importance of being part of a team. They create win-win relationships. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "We all can, in the countries that most of the people who are listening to this podcast, become financially independent, become wealthy, if you know how the wealthy think, if you learn about their habits, and if you start doing what they do and thinking what they think." –Michael Yardney "If your money's not working while you're asleep, you'll never get rich." –Michael Yardney. "It's those who get up again, who find a lesson in their mistakes, who find a way of overcoming them who do well, while the average person sees it as a problem and they don't get up again." –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.

Mentors are an important part of your success. They help you get further in life, whether that's in property investment, entrepreneurship, or just in how you handle your money. Today it's easier now to find a mentor than it ever has been before, but the ready availability of information has its downsides. There's such a thing as too much information from too many sources, some of them untrustworthy. So when choosing a mentor, it's important to do your research and find out if the person you've chosen is trustworthy. In today's show I'm going to share with you some lessons that I've learned from one of my mentors, Warren Buffett. I'll also have a conversation with Ahmad Imam about FOBO – what it is and how to cure it. And in today's mindset moment, you'll learn about some of the differences between successful people and unsuccessful people. What I learned from Warren Buffett "Be greedy when others are fearful, and fearful when others are greedy." This is a well-known quote by Warren Buffett. Initially, I took the words literally and thought I had to buy counter-cyclically. But in context, what Buffett actually suggests is that to profit in the market you don't really have to predict downturns. I learned several lessons from my new understanding of this quote. Fear and greed drive our markets and cause them to cycle. Too often, it can cause them to cycle too far in either direction. Trying to predict these market cycles are is a fool's game. We know much less than we think we do, even when we have plenty of data. As an investor, you simply need to know that these cycles keep recurring. When you know that the cycles will recur, you'll be prepared and not surprised when it happens. Don't overreact to a new phase in the property cycle or allow your emotions to affect your investment decisions. How to diagnose and treat FOBO You've heard of FOMO: Fear of Missing Out. But there's a new acronym people are using: FOBO. It stands for Fear of Better Options. People with FOBO are those who are constantly procrastinating because they know there are many options out there and they aren't sure which is better for them. This leaves them unable to commit How do you know if you're suffering from FOBO? Symptoms include: A severe case of analysis paralysis Feeling overwhelmed by all of the information and choices High anxiety created by the fear of buyer's remorse Cold feet when you're on the verge of making an important decision People with FOBO suffer from a lack of perspective. They have difficulty identifying which sources or information to take seriously. Analytical people often procrastinate the most. They get so caught up in analyzing the options that they fail to take action. It's important to recognize that you won't know it all, but that over time you will know enough to start taking action and you'll find out more along the way. How to cure FOBO: Do your research. If you don't know how to do due diligence, engage people that do know how. Set a deadline for research and stick to it. When the time is up, you'll need to make a decision. Be decisive. If you can't, engage an expert in the field who can do it for you. Links and Resources: Michael YardneyMetropole Property StrategistsNational Property and Economic Market Update 1 day Trainings Coupon Code: PODCAST Ahmad Imam - Metropole Properties Sydney Some of our favourite quotes from the show: "One of the mistakes I made early on is I didn't actually reach up high enough on the food chain of mentors, because if I did, I would have been further along with my success earlier." –Michael Yardney "Another trait of successful people is that they talk and share and encourage ideas with other people. –Michael Yardney "Our system of growing wealth through property is too simple for many intelligent people. They think there's got to be more to it than that, and there isn't." 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.

To be successful in the current more challenging property markets, you not only need to know what to do, but just as importantly you need to know what not to do. As I see it there will be plenty of challenges and risks in the real estate markets this year and the value of certain properties will be a little lower by the end of the year. But we're experiencing a necessary market adjustment and without it we'd be in for the kind of crash we really didn't want. So in today's show, we're going to talk about what not to do in property in 2019. I also have a bit of a controversial mindset moment to share with you. And I'll chat with Ahmed Imam about the questions you should ask an agent before you make an offer so you understand how to take advantage of this buyer's market. Here's What Not to Do In Property in 2019 Don't wait too long to get started Don't let fear stop you Don't wait until you know everything. You'll learn more as you move forward, and you'll learn from your mistakes and challenges. Don't focus on linear income, focus on recurring passive income Don't be impatient – wealth is the transfer of money from the impatient to the patient Making an offer on a property – what price should you offer? Here are 5 questions to ask the agent before you make your offer: How did the vendor come to the asking price for their home? Was it from the agent's suggestion or because that's how much they need to buy their next dream home? Some sellers are unrealistic and unlikely to come down from their asking price if they have to get a certain amount for a particular reason. Have there been any other offers made? This lets you know if you have any competition and how serious the vendor is about selling their home for a reasonable price. How long has the home been on the market? If it's just been put up for sale, the seller may not be anxious to accept the first offer. If the home has been on the market for several months, it's more likely the seller would be ready to accept your offer. Why is the vendor selling? Are they going through a divorce? Do they have to move interstate urgently? Have they already bought another home that would put them under pressure to sell their current home? This will let you know how motivated the seller is. Has the asking price been reduced during the time the property has been on the market? This will tell you whether the seller is really keen to offload their home and also let you know that you might have a motivated seller on your hands and perhaps greater bargaining power. Links and Resources: Michael Yardney Metropole Property Strategists Ahmad Imam – Director Metropole Sydney National Property and Economic Market Update 1 day Trainings use the coupon code: PODCAST Some of our favourite quotes from the show: "I think it's worth remembering that owner occupiers create property markets. If you think about it, 70% of properties are owned by homeowners. On the other hand, investors create the booms." –Michael Yardney "The truth may hurt, but the world doesn't owe you anything." – Michael Yardney "Confidence and trust are earned by you, not owed to 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.

I was 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, free advic

How do I invest? What approaches do I use and which strategies do I use? There is no "secret" to successful property investing, but there is a strategy I use to boost my chances of success. It is to firstly build my asset base through capital growth and then, once I'd built a substantial asset base, to move to the "cash flow" stage of investing. When my properties increase in value this gives me equity for my next deposit and the greater rental growth helped pay the mortgage. The next stage is to slowly lower the loan-to-value ratio (LVR) of my property portfolio and then to start living off my "cash machine" of properties. You see…while cash flow management is important to keep you in the investment game, it's really only capital growth that'll get you out of the rat race. A big mistake I see many investors make is chasing cash flow positive properties early in their journey and never achieving a sufficiently large asset base. My Top Down Approach Over the years I've honed my property investment strategy to find that 5% of properties that I like to call "investment grade" properties, – ones that are likely to grow at wealth producing rates of return. I use what I call a "top-down approach" to my investment selection. The Right Stage of the Economic Cycle It starts with buying at the right stage of the economic and property cycle. I look at the big picture – how's the economy performing and where are we in the property cycle? The Right State Then I look for the right state in which to invest – one that's in the right stage of its own property cycle. While I'm not trying to time the cycle, I don't want to buy right at the peak when I'll have to wait longer for capital growth. I only invest in our larger capital cities, where there are multiple pillars to the economy – because this is where economic growth and wages growth will occur. The Right Suburb Then within that state, I look for the right suburb – one with a long history of strong capital growth outperforming the averages. I've found some suburbs have 50 to 100 per cent more capital growth than others over a 10-year period. It's all about demographics, as these suburbs tend to be areas where more owner-occupiers want to live because of lifestyle choices and where the locals will be prepared to, and can afford to, pay a premium to live because they have higher disposable incomes. In general, they're the more affluent inner- and middle-ring suburbs of our big capital cities, so I check the census statistics to find suburbs where wages growth is above average. Clearly my approach is very different to the speculative approach some investors adopt looking for the next "hot spot". The Right Location Once my research has shown me the suburb to explore, I look for the right location within it. Some livable streets will always outperform others and in those streets, some properties will always be more desirable than others and outperform as investments by increasing in value. Think about the suburb where you live – there would be areas you'd happily live in and areas you would avoid, like on main roads or too close to shops, schools or commercial areas. The Right Property I search for the right property using my '6-Stranded Strategic Approach' and finally I look for… The Right Price I'm not looking for a 'cheap' property (there will always be cheap properties around in secondary locations). house price tag market property cost save home growth data statistics trend I'm looking for the right property at a good price. I choose my properties in that order – a top-down approach – which leads many people to ask why price is at the bottom of the list. You make your money when you buy because you buy the right property – one that will be in continuous strong demand by both owner-occupiers (who push up property values) and tenants (who help you pay off your mortgage). To ensure I buy an investment property that outperforms the market I use my… 6-Stranded Strategic Approach I buy a property that Would appeal to owner occupiers – This is because owner occupiers will buy similar properties pushing up local real estate values. Is below its intrinsic value – that's why I avoid new and off the plan properties, which come at a premium price. Has 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. 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 – This will be an area where more owner occupiers will want to live because of lifestyle choices and one where the locals will be prepared to, and can afford to, pay a premium price to live because they have higher disposable incomes. Is a property with a twist – something unique, or special, different or scarce about the property, and finally… Is where I can manufacture capital growth through refurbishment, renovations or r

Most of us want to become rich. But do we really know what that means? In today's show, I'm going to debunk some of the biggest myths about rich people. The myths that have developed around wealth and rich people are not only interesting but within these myths and the realities behind them, we may find clues as to how we can become wealthy ourselves. It's important to challenge these misconceptions because how you think about money and rich people can determine how successful and wealthy you become. Some of the myths about money and the rich we discuss: Rich people inherited their money – Studies show that a large percentage of the wealthy came from poverty or the middle class and made their own money. Rich people don't have to work hard – Rich people don't relax more than poor people. Tom Corley's study showed that rich people worked 11 hours more per week than poor people. Rich people pay less tax than anybody else – While super wealthy people can invest their money in tax-advantaged investments, but they only represent about one half of one percent of the wealthy. For the most part, the wealthy pay a large amount of tax on their earnings as they earn it. The rich are rich because they got lucky – Wealthy people experience opportunity luck. In other words, they create their own luck. The rich are better educated – In Tom Corley's study, more than 30% of the wealthy did not have a college degree. They relied on self-education. Rich people are not charitable, and they look down on the poor – Wealthy people devote a large amount of free time and money to non-profits or charities in their community. They see it as an obligation to lift others up. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "If you believe negative things about money or about rich people, that they're bad, you may be creating an undertow of self-sabotage that keeps you from being successful." –Michael Yardney "If you're not wealthy or successful in your own mind – you can be successful as a parent you can be successful as a person, but maybe not as much financially successful – it actually is hard to admire wealthy people because you think, "I should be there as well."" –Michael Yardney "You can't become successful in any area of life – including money if we're talking about rich – without hard work, without failure along the way, without getting up one more time and looking adversity in the eye and beating it." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

All investing is associated with some level of risk. But if you're taking on too much risk, you may be speculating, when you think you're investing. In today's episode, I'm going to talk about the difference between investing and speculating as well as a number of myths about risk that most investors don't understand. Then I'll have a chat with Bessie Hassan, of Finder.com.au about the risk of getting scammed. You may be surprised to learn that Australians lose more than a million dollars a week in scams. We'll talk about who gets scammed, what to watch out for, and how to protect yourself. What most investors don't understand about risk What's the difference between investing and speculating? Investing is purchasing an asset to earn a return. You make the decision based on evidence, based on fundamentals, based on long-term horizons so that timing isn't an important part of it, and you aim to profit from it. Speculation is riskier. It's based on the hope of a profit. It's based on hearsay or the next hotspot or chasing the next big thing. It's usually based on short-term time frames, so timing the market is important. And you're hoping to make money out of a rising market, and therefore it's less reliable than investing. So why do some investors think they're investing when they're really speculating? They're looking for the next growth area or the next hotspot. They're looking for something that will work now. On the other hand, strategic investors don't look for investments that will work "now", they look for investments or locations that have always worked - they invest in properties and locations that have worked in the long term. That's the big difference between investing and speculating. The myth of risk What most of us have been taught about risk is wrong, and it's probably holding you back from achieving real wealth. If you are like most investors somewhere along the line you've probably heard that there is associated with different investment vehicles, Most believe that any investment can be placed somewhere along a continuum of risk with low risk investments at one end and highly speculative ventures at the other. They believe that generally, the higher the risk the greater the reward. However, this theory misses an important component that helps determine whether or not a specific investment is risky. That component is you. The investor. Each investor has their own personal risk spectrum. How can you tell if an investment is risky? This question can't be answered without knowing more about you. Have you ever invested in property? Have you completed a development? If you have zero knowledge about residential developments, or you've never owned an investment property, no matter how good the deal seems a development is a risky proposition. Some ways to determine risk: Know your area of expertise -- If you're investing in something that's your specialty, you start with a built-in advantage. Control – the more control you have, the lower your risk Transparency – the more you know, the lower the risk Liquidity -- Liquidity means the ease with which you can recover your money by selling the investment and converting it (or part of it) to cash. The greater the degree of liquidity, the lower your risk. Returns -- Investors gain returns from their investment property via cash flow, capital growth, forced appreciation and tax benefits. The more secure the returns, the less risky the investment will be Is your equity safe? -- Is your financial outlay secure if the investment fails? Are you personally liable? -- When you make an investment, do you have to provide a personal guarantee? This gives others (usually the banks) the right to pursue you if things go wrong. If your liability extends beyond the asset itself, your personal assets could be at risk. Market risk -- Some risks are inherent to certain markets. Consider what impact general economic changes to that marketplace could have on your investment. Risk spectrum -- This is the risk specific to the particular investment. Is it the right property, in the right suburb, at the right price and at the right time in the cycle? When considering an investment, don't look at the investment alone – look at your own risk spectrum too. You can change your risk spectrum by developing expertise. Australians are losing about $1 million a week to investment scams According to Scamwatch by the ACCC men (63.5% of scam reports) are twice as likely as women (33.8% of scam reports) to be targeted by investment scams. If the current trend continues, combined losses reported to Scamwatch and ACORN in 2018 could be in excess of $100 million." The vast majority of investment scams are still centred on traditional investment markets like stocks, real estate or commodities. The clearest warning sign you're dealing an investment scammer is how they contact you and the promises they make. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits

The first few weeks of 2019 have already brought many interesting predictions and forecasts for property. In today's show, I'm going to share 5 property market predictions that will definitely happen in 2019. I'll also have a chat with John Lindeman. We're going to find out what his research suggests about how long this property downturn is going to last. The next boom might be closer than you think. 5 Property market predictions guaranteed to happen in 2019 Around this time each year, it's customary for those of us in the property industry to peer into the future in an attempt to predict what's ahead for our housing markets in the coming year and beyond. Making property predictions is not an exact science, but I can safely make five predictions that I am certain will be true for 2019. Most predictions will be wrong! My first prediction for the year is that it will be a bad year for those in the prediction business. I'm sure this will be correct as most of the economic and property experts get it wrong despite being armed with all the research available in today's information. Many things won't happen, and others will. Many of the predictions for 2019 won't happen and a lot of things will happen this year that no forecaster thought to include in their predictions because market movements are far from an exact science. Some forecasts will be right I predict that a small number of the many economic and property forecasts for 2019 will accidentally come true and those who randomly predicted them will claim to be experts, despite the fact that it was the first time they got one of their hundreds of forecasts right and that they adjusted their forecasts over the year. I believe that most property investors will get it wrong this year. This one is simple –they always do! And I'm not talking about those who fail to take action this year, those who don't even get into the market, even though that will be a big mistake this year. Those who get it right will do very well. And my last prediction is that those property investors who get it right will do very well out of real estate this year and set themselves up for the years ahead. Those who saw previous property downturns as a countercyclical opportunity have consistently done well for themselves. They recognise the slower market as a chance to invest when others are too afraid to buy and when there are more willing sellers in the market than purchasers. A few more property predictions for 2019. The big factors that will affect our property markets this year will be : The availability of finance, Consumer confidence and The result of the Federal election. If our property markets slump further this year the RBA has the ability to lower interest rates as it has often done in the past, or APRA can loosen the screws and allow investors and home buyers borrow more freely. I can't see any indication of a rate rise in 2019 – if anything they should fall, but the RBA doesn't like to fiddle with rates in the months leading up to an election. Of course, any fallout from the Haynes Royal Commission into Nanking will further affect the bank's willingness to lend and possibly their need to lift rates out of cycle. And I can't see consumer confidence changing significantly until after the election due to the unknown future status of negative gearing and Capital Gains Tax. This means there will be further moderate price falls especially in Melbourne and Sydney and there are likely to be significant price falls for new and off the plan apartments. In the meantime, other markets including Brisbane, Canberra and Hobart will keep rising in value. So, our real estate markets will remain fragmented, but there won't be a crash. Despite all the doom and gloom we hear in the media, things will not fall in a heap. Why am I so confident about this? Because history is a great teacher! And history tells us that over time, the value of well-located properties always go up and investors who stay in the game for the long term always do well. Why the next property boom is not far away Despite the warnings from property pessimists who expect a continuing and significant downturn in our property markets, history suggests that this is unlikely. There have only been three such significant downturns in the property market between 1901 and today: During the Great Depression, when the property prices fell 26% over 6 years During the credit squeeze in the 1960s when property prices fell by about 18% between 1960 and 1967 In the fallout from the Global Financial Crisis, when property market prices fell by 8-10% between 2008 and 2012 In each previous case, price crashes were precipitated by a share market crash. That leads to a lack of housing finance, which causes house prices to fall. That's very different from market conditions we're experiencing today. Currently, we have a growing economy, low unemployment, and low interest rates. The difference here is that the credit squeeze is self-induced. It's not

Every year is a little bit different in the property market, but 2019 is going to be a watershed year.If you're curious about what's going to be affecting the property market in the year ahead, you're going to enjoy today's conversation with Ahmad Imam. We're going to talk about the major trends what will shape our real estate markets in 2019 and beyond. After you listen to today's episode, you'll be more informed and less worried, because you'll know what to look out for, and you'll find out more about the opportunities ahead. Some of the highlights from today's discussion: There was a serious crisis of confidence in 2018, made worse by fear-mongering media coverage. The double-digit capital growth experienced in Sydney and Melbourne during the boom was not sustainable. The current correction is an important part of the property cycle. There is more than one property market, and not all of Australia's property markets were in a downturn in 2018. Experienced investors see the normal downturn in the property cycle as a time of great opportunity. Sydney and Melbourne got the main benefits of national low-interest rates because those are the places the majority of immigrants went. Investment grade properties and A-grade homes are still holding their value. In order for property values to "crash" it means that people have to sell and no one will be available to buy. This is different from the normal ups and downs of the market. Four ways to make money in property: rent return, capital growth, manufactured capital growth, and tax benefits. Make your investment decisions based on fundamentals, not on the media. Now it's important than ever to follow a system In 2019, there will be more media predicting market crashes, which could become a self-fulfilling prophecy. Interest rates won't rise in 2019. Wages growth will probably only increase slowly in 2019. Markets will become more fragmented than ever in 2019. Brisbane property is likely to see growth in 2019. The inner suburbs are doing better than outer suburbs, creating a reverse ripple effect. If the market falls further, APRA will recommend the banks begin lending more Links and Resources: Michael YardneyMetropole Property Strategists Ahmad Imam MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne, and Brisbane Use he coupon code PODCAST and come as our guest Some of our favourite quotes from the show: "We've got so many clients who've been around the block a few times, who have been waiting for this opportunity, who've geared themselves up and we're helping them buy investment-grade properties." –Michael Yardney"Those who know what's going on, those who've got a level of perspective, will see opportunities." –Michael Yardney"There's no way of getting rich quick at this stage of the property cycle." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Are you a good negotiator? Negotiating is something we it constantly in all aspects of our life, from relationships to which path you choose to take on a crowded street. And of course, negotiation is one of the skills developed by savvy property investors, business people and entrepreneurs Some people are very good at negotiation, while others simply take what the other party is willing to give them. What is the difference between those two groups? The first group knows how to negotiate. Today I'll be talking about negotiation with the man who wrote the book on negotiation – in fact, he actually wrote 3 books on the subject – Wayne Berry. Wayne is the CEO of Top Gun Business Academy. Wayne has probably trained more successful salespeople than anyone else in Australia. So listen to our conversation to learn what you've been missing when it comes to negotiation. Some of the highlights from today's discussion: Life is one big negotiation: most things we want or need are either owned or controlled by other people, so it's important to be able to negotiate to get what we want. Life is easier if you're a good negotiator. There are three leverage points in negotiation: Information Time Power The first step of negotiating is to gather all of the information that you think is relevant around the situation. Attitude and expectation are great sources of power. Have an attitude that everything's negotiable is very empowering. Common mistakes people make in negotiation: Not realizing that everything is negotiable. Not doing any planning or preparation for the negotiation. Talking too much and not listening carefully. Negotiating will require different tactics depending on the personality of the person you're negotiating with. You first need to build rapport and trust to negotiate effectively. If you have more options you'll have more power in a negotiation, so if you don't have other alternatives, you should create them. Concessions should be traded and never given away. Find out what the other party can do for you. Sequence of a negotiation: Preparation Figure out what the other party is likely to want Clarify what it is that you want Understanding the decision-making process of the other party Find out if there are any other parties who will be involved in the decision-making process and involve them early on Links and Resources: Michael Yardney Metropole Property Strategists MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne and Brisbane Wayne Berry – Top Gun Business Academy Special Report – Sources of Power in a Negotiation Special offers from Wayne Berry – Online Sales and Negotiation Skills Program Some of our favourite quotes from the show: "A thinker has to be sold to, negotiated with in a very, very different way to an outgoing person like you or me, or analytical people need to be sold to differently than creative people." –Michael Yardney "If you don't like the circumstances, change the circumstances." –Wayne Berry "We're not taking advantage of people when we're doing these negotiations, you shouldn't feel that way. You're taking advantage of the situation." –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 beginning of the year is a good time to reflect on the last year and how things went, as well as consider what you want to do in the new year. Today I'm going to share with some of the things I wish I'd known earlier in life. I'll also chat with Ken Raiss about getting your kids into the property market. If you don't have kids, don't worry – there's good information in there for you too. And I'll answer a listener's question about the importance of past performance and how it relates to future performance of a property or location. 9 things I wish I knew back then Become the pilot of your life Everything changed for me when I learned that my thoughts lead to my feelings, my feelings lead to my actions and my actions lead to my results. This meant my inner world (my thoughts and feelings) controlled my outer world (my actions and results). The turning point was when I realised that I was responsible for all the things (both good and bad) that happened to me. I then became the pilot of my life and not a passenger. And even if it's not true, I know I act differently, and my results are better because I believe I'm responsible for everything that happens to me. Keep your eye on the prize! When I was young no one taught me about the Reticular Activating System, that part of your brain that only lets you see in your surroundings what you focus your thoughts on. It pretty much always helps you to find what you are looking for. Setting goals and regularly reviewing them is one way to keep your focus on what's important and to help you take action that will move you closer to toward where you want to go. Your attitude changes your reality. It's the old "is the glass half full or half empty" story. When things happen in life that we don't like, we can either choose to see them as a problem or as a solution waiting to be discovered. It took me quite a while to discover that if you change your attitude, you actually change your reality. When you have a positive attitude instead of a negative, one you start to see things and viewpoints that were invisible to you before. You must give to receive. As children, we are told that the joy is in giving rather than receiving. But as we become adults, for many life becomes about what we can get out of someone or something. However, if you want to increase the value you receive (be it money, love, kindness, opportunities) you have to increase the value you give. Because over time what you get is in proportion to what you give. While it would be nice to get something for nothing, that seldom happens. Be Pro-active rather than reactive There seem to be 3 types of people: Those who make things happen Those who watch what happens, and… Those that sit and wonder "what just happened?" Be in the first group and always be on the lookout for opportunities. Make your time count! How often have you heard someone say: "time flies"? Indeed, it does, so use it wisely! Just as you are careful about how and where you invest your money, you should also be careful as to how you invest your time. The Pareto Principle says that 80 percent of the value we receive comes from just 20 percent of what we do with our time. So what things do you spend your time doing that take a lot of energy yet deliver few results? Mistakes mean growth! Sometimes negative experiences, mistakes, and failures can be even better than a success because they teach you something new which another win could never teach you. However, we are often so driven to get things right that we fail to see the value in the things we get wrong. Instead, we spend our time wishing we had done it differently. Or not doing anything at all because the fear of making mistakes paralyzes us. If you get it wrong, learn from your mistake and make it count by doing it differently next time. One "failure" can – with time – help you create many successes. Don't waste your time worrying Most things you fear will happen, never do. They are just monsters in your mind. And if they do happen then they will most likely not be as bad as you expected. So now when confronted with a challenge I put things into perspective by asking myself: What's the worst that can happen? What's the best possible outcome? And… What the most likely thing that's going to happen This means you shouldn't take things too seriously because that which seems like a big problem today, you may not even remember in five years. So, lighten up a bit. Time spent worrying is time that could be spent identifying opportunities and taking action. Don't compare yourself to others. When you compare yourself to others you let the outside world control how you feel about yourself. Instead strive to become the best you can be and look at how far you have come, what you have accomplished and how you have grown. In conclusion, we live in the best country in the world and at the best time in history. Appreciate what you have and enjoy the journey of life because an attitude of gratitude is a simple w

Have you ever felt that you're not good enough? Have you wondered why you're not appreciated or valued for who you really are? This happens to everyone, even successful business people and entrepreneurs. But why would wealthy and successful people feel they aren't good enough? Something called imposter syndrome can make you feel as if you're not good enough. Imposter syndrome causes feelings of inadequacy and self-doubt even in face of evidence to the contrary. If you're wondering whether you not you're good enough, there are questions you can ask yourself to help figure out whether you have what it takes to be successful. Questions to ask yourself Do you have the skills and knowledge that you need to succeed? If you only have the bare minimum of skills and knowledge, you'll only achieve the bare minimum of success. Seek out virtuoso skills and virtuoso knowledge. Are you persistent? You'll need to be in order to succeed. Persistence is not an inherent trait. The most persistent people are passionate about what they're doing. Do you have an unquenchable thirst for knowledge? Successful people spend a lot of time learning about the thing that they want to succeed at. Are you a risk taker? Some people are too cautious, while others take too many risks. Successful people take risks, but they're cautious and calculated risks. Do you know what you want to achieve? Successful people know how to focus on the thing that they want to succeed at. Do you have success habits? Whether or not you're successful depends on whether you cultivate habits that lead to success. Do you have the right team around you? You need experts around you to lead you in the right direction, and you need friends and family to support you. The right people will lift you up and the wrong people will drag you down. Do you have a positive mental attitude? Optimism is a common trait among successful people. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "Many people believe that others, not themselves, others are the judge of whether they're good enough." –Michael Yardney "I've worked with a lot of high-achieving people who didn't feel worthy of their success." –Michael Yardney "Successful people seem to be continuously wanting to improve themselves." –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 Australian property invetsor you will need to be entrepreneurial. In this episode, you'll hear me being interviewed by Brett Warren, the director of Metropole Property Strategists Brisbane. 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 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

We all understand the concept of fake news. The media plays with our emotions, our fear and our greed in an effort to get clicks and readers. Today I'm going to discuss 6 things the media won't tell you about property investing that you should know. Then, in my mindset moment, I'm going to talk about a concept that's helped me through my difficult times. After that, I'll play a radio interview that I did with Laurie Atlas. In the interview, I talk about how you can make your kids richer and more successful in life. And if you don't plan to have kids, don't worry – the information in this interview can help you too. What the Financial Media Won't Tell You About Property Investment Property investment is simple, but not easy. Half of the people who get involved in property investment sell up within five years. 20% sell within one year. Of those who stay in the property investment game, 92% never get past their second investment property. The media makes it sound easy, but it isn't. It's going to take you up to 30 years to become financially free through property. It takes a couple of property cycles to establish a large asset base. Residential real estate is a high-growth, relatively low-yield investment. The banks are not on your side. That doesn't mean the bank is untrustworthy, but their job is to sell products, and not all of those products are in your best interest. No one can actually predict how the markets will act in the future. There are always surprises. There's not just one property market. Each state is in its own stage in the property cycle, and there are differences even within one state. Super Parents Raise Super Kids Most of our habits are learned by age 9 People should aspire to be wealthy, not be driven by envy Reading can help your children become more successful People who were punished for losing their temper as kids are more likely to be successful Blaming others won't help your child get to the next level The school system isn't the right place to learn how to be successful and wealthy Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Laurie Atlas Radio Show Some of our favourite quotes from the show: "The problem is that most of us act irrationally and emotionally when it comes to money." – Michael Yardney "You can't tame the barking dogs. But you have it within your power to completely tune out from them." – Michael Yardney "True wealth has nothing to do with how much money you've got. I've actually learned that rich people are actually very poor because all they've got is money. Wealthy people have got money plus relationships, money plus love, money plus the time to contribute back to the community, money plus health." – 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.

Wondering what's ahead for property in 2019? Maybe you'd like to know what other Australian property investors plan to do? Well that's exactly what we discuss in today's show as we unpack the results of this year's Property Investor Sentiment Survey You'll hear what over 1,800 Australians feel about our current real estate markets and what they plan to do. You see...they took part in this year's Property Investor Sentiment Survey run by my Property Update newsletter in conjunction with Your Investment Property magazine and onthehouse.com.au 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. Some surprises One of the surprises is that despite our property markets moving to the slowdown phase of the cycle more than half of the respondents believe now is a good time to invest despite the fact that the vast majority of respondents (84%) believe that property prices will fall or remain flat over the next year. Clearly, they are taking a long-term view. However, this is significantly down from last year when 61% of respondents thought it was a good time to invest. At the same time, the percentage that were unsure increased to 23% (up from 16% last year.) However, they are realistic that they won't enjoy quick and massive capital growth in the near future, but they still intend to buy more property in the next year. Our survey reveals that 42% of the respondents plan to buy an investment in the next year again showing strong confidence in property as a long-term investment. Not surprisingly this is down from the last 2 years where on both occasions more than half (52%) the respondents were planning to invest in the coming year. It's also interesting to note where investors are planning to buy. South East Queensland is seen as the best place to invest over the next 5 years according to close to 70% of respondents (this includes Brisbane, the Gold Coast and Sunshine Coast.) Last year more than half of the respondents nominated Melbourne as the place to be last year, Their focus is on long-term capital growth, rather than an immediate equity boost, and they're looking at property that has potential to add value, Perhaps unsurprisingly, it also reveals that many investors are feeling the impact of credit squeeze with bank's tighter lending restrictions. Almost half of respondents are finding the recent tighter lending criteria impacting their ability to purchase another property. Interestingly this is only slightly higher this year (48%) than last year (46%) 19% of respondents plan to buy a new home in 2019. This is down from 23% last year (but still higher than the number planning to buy a new home 24 months ago (14%) Links and Resources: Michael Yardney Metropole Property Strategists Ahmad Imam – Director Metropole Sydney Sarah Megginson Editor Your Investment Property Magazine Results of the 2018 Property Investor Sentiment Survey Some of our favourite quotes from the show: "And again, it's not a competition, but it's interesting to know what people are thinking, what they're planning to do, because that's going to, I guess, set the scene for the markets for the next year." –Michael Yardney "The average property writer for the big media, they're young people who probably have no background in real estate and wonder about these ugly greedy investors who've got properties, and they're almost asking for the property market to crash." –Michael Yardney "I'd rather buy in the better location and a smaller component of land, than further out in a house with a big block of land that isn't going to do as well. As we keep saying, it's the location that does the heavy lifting." –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 wondering what's going on with the property market – whether you should buy, whether you should sell, how your property portfolio is performing? The media is full of mixed messages, so no wonder you're confused. There's no doubt we're at the next phase of the property cycle, what some call the slump phase. But not all properties are slumping. Today we'll talk about what you should do as a property investor in a buyer's market and which types of property will hold their own. We'll look at previous cycles and research to determine which properties do better in a buyer's market. I'll also share a mindset moment, with a mentorship lesson from my own mentor Jim Rohn. Then we'll have a chat with Ahmad Iman, Director of Metropole in Sydney, about what investors are looking for in terms of their financial goals. Which properties will outperform in a buyer's market? The property market began to slow down around the middle of last year. Now the market is much softer. What happens next is dependent on finance and consumer confidence. Property values in some areas of Sydney and Melbourne may keep falling until sometime next year, but not by more than 5%. However, investment grade properties are not falling. They're holding their value. The Perth property market is likely to bottom out sometime over the next year or so. Its recovery is likely to be slow. Hobart's strong property growth is likely to slow down. Brisbane will probably be the strongest property market over the next couple of years Investment-grade properties and A-grade homes are holding their values even in the weak parts of Melbourne and Sydney. If you're a homebuyer, your family needs should dictate when you buy your next property. This is a good time for first home buyers to buy a new property or for established home buyers to trade up. If you're interested in investing, the best time to buy is when you have the financing to do so and the situation fits in with your long-term plan. Don't try to time the market. How do your goals compare to other investors? Most clients have an end goal of financial independence. Beginning investors are looking for a property profile that generates $100,000 in passive income per year. The average Australian couple needs about $40,000-$50,000 just to live a modest lifestyle. $100,000 a year gross is very different from $100,000 a year net. Another common goal is 4 to 5 investment properties by retirement age or financial independence age. The size and value of your asset base and the quality of your investments is more important than how many properties you have. Experienced investors often have a goal of a property portfolio that generates close to $200,000 in passive income per year. It's important to consider your own existing lifestyle and spending habits when setting a passive income goal. More sophisticated investors look at purchasing developments or blocks of units to renovate. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Michael Yardney's Property Renovations and Development Workshop Ahmad Imam – Director Metropole Properties Sydney Some of our favourite quotes from the show: "And as always, steer clear of the many property spruikers that are disguised as investment advisors but who are actually working for the project marketers or the developers." –Michael Yardney "Even the experts can't time the market." –Michael Yardney "As an investor, you need to take a long-term view, do your homework and research carefully and make sure you don't overpay, and go out and buy that property today – the sort that you would have had to fight much harder for a few months ago." –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 wealth gap is widening around the world. The rich get richer and the poor get left behind. But why does this happen? According to Tom Corley, the gap is really a parenting gap, not a wealth gap. In today's episode, we'll discuss 10 critical habits that the self-made wealthy learned from their parents. This will help you understand the lessons that you should be teaching your children to help them grow up to be successful. And if you haven't yet learned these lessons yourself, it's not too late to do so. 10 critical habits the wealthy learn from their parents You create your life. Your life is not determined by the government, other people or external circumstances. You are the pilot of your life. Take responsibility when things go wrong. Don't blame others or play the victim. Respect the law. When you break the rules, people don't trust you and don't want to do business with you. Seek your main purpose. Kids should experiment with different activities so that they can find and identify their true talents. Pursue your dreams and goals. Define an ideal future life. This creates clarity and helps you see down the road and focus your attentions. Acquiring wealth is a good thing. Wealthy people help fund charities, build hospitals and schools. They should be looked up to. Work hard for what you want. You don't have to be born wealthy to attain wealth, but you do need to be willing to work hard for it. Respect other people's property. You're not entitled to something that another person has. Don't expect others to give you anything. Improve yourself daily. Parents of self-made wealthy people teach their kids to focus on growth and knowledge. Use time productively. Don't waste time on distractions. Use your time to learn and improve yourself. Make productivity a habit. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "We know that mentors, models are really important in life because we learn a lot of our habits, the things we do on a regular basis, from things we see, things we hear, things we experience as a child." –Michael Yardney "Clearly, when you make money doing what you love, it leads to a different sort of resilience, it lets you get through the difficult times because all businesses have their ups and downs and challenges. It leads you to your true calling in life. –Michael Yardney "You don't have to be born wealthy. Most successful people today, we're not born that way." –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.

Successful property investors need to own the types of properties that are going to be in continuous strong demand in the future. Demand is driven by demographics. That means all real estate investors should become students of demographics, so in today's episode, I want to discuss the major demographic milestones that Australia has recently reached. I'll also share a mindset moment, with a lesson in the kind of people you should avoid. After that, we'll chat with Ken Raiss about the five essential documents you need for Estate Planning. You really should know about these demographic milestones At the end of August 2018, Melbourne's population was projected to reach five million people. Victoria accounts for over a third of Australia's population growth. Melbourne had the largest annual population increase of any city in Australia's history. Victoria is getting more migrants than anywhere else. All this population growth is a positive sign for the Victoria property market's long-term prospects. Melbourne is projected to hit 6 million people by 2025, the same year Sydney is projected to hit a similar population. There's an imbalance between the types of housing that's being built with what key buying groups want and can afford to buy properties. There are three types of home buyers: first-time homebuyers, upgraders, and downsizers - remember home buyers make up 70% of the market.) Research suggests that demand from young renters and upgraders is going to be declining. First home buyers and downsizers will drive Australia's housing market over the next decade. First home buyers are getting older. First home owners are looking for room to grow and the ability to add value. Affordability is also a concern. Downsizers are aged between 60-74. About ¾ of downsizers are couples or live alone. Downsizers are looking for low-maintenance, convenience, access to the same amenities near where they've been living, but smaller projects. 5 Critical Estate Planning Documents A Will – And this should be linked to a Testamentary Trust which protects your assets and greatly reduces potential taxes. Non-Estate Distributions – Your Superannuation is not technically yours and can't be passed on in a regular will. You'll need a Binding Death Nomination or Superannuation Will to pass on control of those assets. Enduring Power of Attorney – If you become unable to handle your finances before death, an enduring power of attorney can authorize someone to act on your behalf. These documents can be very broad or very specific, depending on need. Medical Power of Attorney – Allows you to specify medical wishes and after-death wishes like organ donation. Personal Details – A list of things like passwords, bank account access information, and other personal details that your surviving spouse or relatives will need after you're gone. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Ken Raiss: Metropole Wealth Advisory Some of our favourite quotes from the show: "We must be cautious about who we surround ourselves with, because of both the short and the long-term implications." –Michael Yardney "You need to surround yourself with people who can run circles around you in as many areas as possible, people who are exponentially better than you in a variety of ways. Because they're going to help you grow to the next level." –Michael Yardney "You can't expect to live a positive life if you surround yourself with negative 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.

In today's show, I'll answer two listener questions. The first question is from Trent who is concerned about what will happen to our property markets if Labor Party's proposed negative gearing and Capital Gains Tax changes are introduced. Then we'll answer Joanne's question about whether you need a will. In my mindset message I'll talk about 20 regrets people have when they die. You may be surprised by some of them. House prices could drop 10% if ALP policies are introduced A report recently showed that house prices could slide by up to 9% in Sydney and Melbourne if the labor party gets into power and introduces its planned property tax changes. A report from RiskWise Property Research assessed the potential impacts of the proposed reforms to limit negative gearing to new rental dwellings and to halve the CGT tax discount. According to the report, an unintended consequence of the ALP policies would occur in the our national property markets where the proposed changes would be the equivalent to a sudden 1-1.5 % increase in interest rates. This could also cause housing prices to drop by 9 and 10% in certain parts of Australia. These proposals were first muted before the previous election, almost three years ago. But the housing market is very different now. Falling house prices are now making homes more affordable. Yet shadow treasurer Chris Bowen has said that the negative gearing and CGT changes are about making long-term structural adjustments rather than addressing the short-term property cycle Another issue is that property investors will be driven to buy new properties, both apartments (which will generally be in the CBD and houses (which are likely to be in the outer suburbs.) Both these types of property make poor investments because of their locations and will make even worse investments as, once purchased, will be established properties. However, in the long-term, property is going to remain a great long-term investment. Don't allow these short-term proposed changes to not alter your long-term strategy. Remember…negative gearing is not a property investment strategy, it's a short-term financial position. My strategy (and yours) should be to build as big an asset base as we can, so in the future we have choices. The bigger the asset base you have, the more choices you'll have. There will be many, many changes to tax and superannuation laws between now and when you retire, so don't change your long-term strategy because of short-term ups and downs. Do I need a will? Studies have shown that at least 45% of Australians do not have a will. With no will, the government will decide who gets your money according to pre-determined formulas It's important to set up the right type of will. An estate lawyer is the right person to do that for you. How your assets will be distributed affects what taxes will be paid, the protection of those assets from one generation to another, and whether your assets end up where you intend them to go. You should have a couple of options for executor in your will, in case one person you've chosen doesn't want the job or isn't there. There are basically only four categories of people that can inherit superannuation: spouses, children, people who are financially dependent, and interdependent people. Different taxes apply within those groups. Shares and superannuation can be taxed in some circumstances. Links and Resources: Michael Yardney Metropole Property Strategists Ken Raiss – Metropole Wealth Advisory RiskWise Report – The Impact of Labor's proposed tax changes Some of our favourite quotes from the show: "Another regret people had was not accomplishing enough. I guess the lesson is, start taking action." – Michael Yardney "Everyone's got their own idea of what risk is, but you know when you're living too much in your comfort zone." – Michael Yardney "Clearly one of the big benefits of having a will is it provides certainty on your death, it gives certainty about your wishes, how you want your assets passed on, how you want them divided." – 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's right about the property markets – the pessimists or the optimists? In today's Podcast you'll find out. Following a couple of booming years where property values in Melbourne and Sydney experienced double-digit capital growth year on year, our markets have moved to the next stage of the property cycle where price growth has slowed in some cities and property values have fallen – particularly in Sydney and Melbourne. Not surprisingly this is allowing some of the property pessimists on the internet forums to rub their hands in glee saying, "I told you so." Sure, our property markets are experiencing a slowdown, but values are still rising in many locations, and yes prices are falling a little in some locations, however, we're not in for a property crash and in today's show I'm going to chat with Pete Wargent to explain why we're not worried about a property market meltdown. Why our property markets won't crash One of the most frequent questions I'm asked at present is "how long will this property market downturn last?" Another one is – "Will our property markets crash?" So if you are considering investing in property, or about to buy a home, it would be good to know the answer to these questions. But firstly, remember there is not one property market around Australia. Our markets are fragmented – not only is each state at its own stage of its property cycle, but within each state different segments of the markets are behaving differently. If there isn't one market, it means it doesn't really make much sense to say the "Australian property market" will crash, to look at this topic in a bit more detail I've got Pete Wargent on the line. What could cause a crash as opposed to an orderly drop in prices We're experiencing a soft landing. On the other hand, a true collapse in house prices would require some large external shock such as: Unemployment high enough to trigger a wave of forced home sales. High-interest rates that would cause a raft of homeowners to default on their mortgages. Severe credit squeeze A severe recession that would cripple our economy. A significant oversupply of property. A halt to the rising population. Changes to government legislation making property investment less favourable. The fundamentals underpinning our markets World economy behaving itself Australian economy growing at around 3% No likelihood of an interest rate rise any time soon Our financial system/banks are in good shape Employment growth Strong population growth at a time when new constructions are slowing down Have not had a "crash" since the late 1890's – we have corrections on a regular basis Underpinned by the high percentage of homeowners More families at household formation age (esp immigrants Oversupply of property limited to certain locations only – lots of secondary property and a shortage of A-grade property No real concern about the level of household debt – on the whole, it's in the hands of those that can afford it No real concern about Interest only loans converting to P&I A culture of home ownership – 70% of us own or are paying off our homes The bottom line: For a number of years now bubblers and doomsayers have been predicting the bursting of Australia's property bubble. They've told us we're in denial about the impending gloom blinded by the consistent performance of our property markets over the last few years. We've just explained what could cause a property market collapse, but we've also explained why we don't think we should be worried. However, we need to be vigilant. As investors, we need to be aware of what's happening in the world's economies as Australia does not operate in isolation. And needs to keep cognizant of what's happening in our property markets Remember there is not one property market and some locations including Brisbane are going to outperform. BIS Oxford predicts an 11% increase in Brisbane property values by 2021. Strategic investors will take advantage of the opportunities our property markets will offer over the next couple of years maximizing their upsides while protecting their downsides. Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Pete Wargent Some of our favourite quotes from the show: "One of the things that's been pushing up our property markets has been the rising population that's been underpinning it, particularly in Melbourne and Sydney." –Michael Yardney "This is just part of the property cycle. Don't change your long-term strategy of wealth creation because of a short-term blip in the market." –Michael Yardney "If you've got the cash flow, you're going to get through." –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.

To become a successful as an investor you need to own the type of property that's going to be in strong demand not just now, but in the future as well. So on this week's show I'm going to discuss a developing demographic change will affect the kinds of properties that will be in demand going forward. I'll also share a mindset moment and explain why you need a guide to take you to the top of the mountain. And then, I'll have a chat with Pete Wargent about household finance and mortgage stress. There is a lot of concern that mortgage stress will cause a property market meltdown. The good news is that this story will finish with a happy ending. A major demographic change all investors must understand For a long time, Baby Boomers have driven the property markets, because there were so many more of them than the previous generation Now, Gen Ys are beginning to shape the property markets The population growth in the 20-34-year-old age group has increased rapidly. There are now 5,5 million Australians (35% of our workforce) aged between 24-38. The Gen Y population growth is based on both the natural aging of the children of Baby Boomers and the strong overseas migration Gen Ys are now forming families and moving into homes Gen Ys prefer different homes from their parents. Rather than large houses in the suburbs, they prefer townhouses, family-friendly apartments, and smaller detached houses Gen Ys will seek affordable, smaller homes located closer to the locations where they want to be Gen Ys are looking for walkability, adjacency to parks, and access to public transport Will Mortgage Stress cause a property market meltdown? There's no chance that 1,000,000 people will default on their mortgage in the next year like some of the property pessimists are predicting Only a very small share of loans are 90+ days delinquent There are more delinquencies in Western Australia because of the economic downturn In Sydney, Melbourne and Brisbane, mortgage arrears are very low Mortgage arrears for investor loans is even lower than that for home loans Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Pete Wargent Some of our favourite quotes from the show: "Guides make all mountaintops attainable. And the same goes for success, and for building wealth." – Michael Yardney "Why on earth would you try to figure out everything on your own when you can learn from someone who came before you?" – Michael Yardney "People have been talking about recession for as long as I've been commentating on markets." – Pete Wargent 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.

Is the media killing our property markets and the economy? Something is causing a crisis of confidence -- and it's not the economic fundamentals. But homeowners and property investors are scared. They're reading headlines like: Melbourne and Sydney house prices are falling $1,000 a week. A Shorten government will decimate the property market because of its proposed tax changes. One million investors will need to sell up their homes because their loans will convert from interest only to principle and interest. No wonder they're scared. But should they be? Are the headlines right? Today I'll chat with Dr. Andrew Wilson, Chief Economist of MyHousingMarket.com.au and we'll tell you what's really going on. Crisis of Confidence The regularly reported ANZ-Roy Morgan consumer confidence index is below the longer-term average of 113 held since 1990 Investors are asking us at Metropole if they should sell So, what's changed? What's scaring investors? Remember, different consumers can be scared about different things but here are the factors that could explain it: I've never seen the media with as much negative press about house prices heading south – not even during the global financial crisis Headlines talk about rising interest rates. It's harder to get money from the banks due to the restrictions placed by APRA and the Royal Commission has scared the banks, The Wentworth by-election result and the fact that we now have a minority Government. This may mean we have another Federal election, which might come sooner than the one expected in late May. The uncertainty of State elections in Victoria and NSW The stock market is pretty negative and crazy right now, with the S&P/ASX 200 index down over 6% in October. Low wages growth – increasing Petrol prices are now at the highest level in a decade, which has to be scaring households on tight budgets. Highlights of the Interview With Dr. Andrew Wilson You would have to go back to 2008 to see clearance rates consistently below 50% at this time of the year, and that was at the time of the global financial crisis. Currently, however, the drivers of the housing market are on the opposite end of the scale. We have a strong economy, unemployment numbers show that performance in the labor market is best in six years. We're creating jobs, we have strong migration, there are booming first home buyer numbers, rents are increasing, interest rates are low and not increasing. Yet the market has lost its nerve. Banks have tightened their lending which means fewer buyers, which means fewer sellers, and banks see the decline and tighten lending again. It's a self-perpetuating cycle. When consumer confidence is high, it can take a while to shift it back. It's even harder to shift low confidence to high confidence. Interest rates will probably go down before they go up again. We have strong fundamentals for property. There's no financial crisis. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Dr. Andrew Wilson Some of our favourite quotes from the show: "Those who can see the big picture opportunities and invest based on fundamentals, rather than making investment decisions based on the media, are going to take advantage of the opportunities the market offers them." – Michael Yardney "The best way to reflect on your failures is to focus on the lessons that you've learned and the person that you've become, rather than spending your time avoiding failure." –Michael Yardney "It's not the events that define who you are. It's how you choose to react to what's happening to you that defines who you are." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Who make better property investors – women or men? Up till now the answer may have depended on who you asked (or what gender they were) but neuroscientists have uncovered evidence suggesting that, when the pressure is on, women bring unique strengths to decision making and make less-risky decisions under high-stress situations. According to the neurobiologist Ruud van den Bos, men under stress experience a huge spike in cortisol, which degrades their decision-making ability. Women experience a smaller spike, which creates urgency but doesn't impede decision-making. Every pundit and analyst in the business world has repeatedly pointed out that today's business world is continually getting more stressful. The more stressful things get, the better that women (on average) will become at making decision than men (on average). So, the conclusion I have come to is that when the going gets tough, she gets smarter and you get dumber. And since disruptive innovation means the going is always getting tougher, if you're not hiring and promoting women, you're only proving how dumb you are. But back to property investment… Who make better investors? When it comes to property, men have a higher tendency to gamble and are more easily manipulated while women are usually more cautious, seeking low-risk and long-term sustainable capital growth. Riskwise found that Property marketers often use enticement by appealing to men's visual senses. For example, it's common practice for female models to be hired to stand beside professional sales people at property expos. A study of real estate agents who hired models in the past several years is revealing. Typically, the models increased the traffic to their booth by 50 to 100 percent, with a similar increase in the rate of high-quality sales leads, many of which converted into transactions. It was noted by these agents that even a short absence of the model resulted in an immediate and significant decrease in traffic to their booth. And you know those so-called free educational seminars which are designed by real estate spruikers to sell off-the-plan, and often low performing, new properties? Women are more likely to recognise that they are not the client at a free seminar and, in fact, the seminar organiser likely works for a property developer and has a contractual obligation to sell the properties for the highest possible price. Men, on the other hand, are more likely to be swept up in the hype and believe they are the client, and that the organiser of the free seminar will truly act in their best interests. Are women really better property investors than men? And if so, why? RiskWise research shows women are more aware of risks and seek tools to manage it; men tend to ignore the risks. Women's interest in risk and mitigation strategies is 38 per cent higher than men. In fact, studies have shown men are overconfident and have a higher tendency to gamble. Of course this is a concern in the property market, where high-risk ventures can have devastating consequences. Are there differences in the money behaviours of men and women? GAMBLING -- Women gamble less than men. Not only do fewer women gamble, but for the women who do gamble, they gamble less frequently. RISK TOLERANCE -- Men have a higher risk tolerance than women. 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. 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. COMMUNICATION -- Women are better communicators than men. 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. CREATIVITY -- Men are more creative than women. This is physiological. Men have a smaller corpus callosum. The corpus callosum is the bundle of neural nerve fibers that separates the right hemisphere of the brain from the left. Recent studies on creativity have shown that those with a smaller corpus callosum are hardwired for greater creativity. 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. 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 Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "We can't make the big jobs

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? This week'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 s

If you want your property investments to outperform the averages, then you need to find locations that outperform the averages. This means you need to understand how to know how to identifying areas that are gentrifying. Gentrification is what happens when a poorer suburb is gradually taken over by more affluent residents. This in turn results an increase in rents and property values. In today's show, I'll explain how to find this type of location. I'm also going to tell you a story taught to me years ago by one of my mentors – the story of a Fijian fisherman. And, as you might have guessed, it has nothing to do with fishing Finally, I will have a chat about depreciation with Mike Mortlock. Depreciation is an allowance for the wear and tear of your investment property. Recent changes have been made in how much depreciation you can claim and what properties you can claim it on, and it's important to understand how this may affect your investment properties. Areas that are gentrifying have: Some of the steps you can take to find a suburb that is improving is to go for a drive and a walk. You'll "know it when you see it" because you'll find evidence that people with money are moving in. They will be spending large amounts of money renovating or extending their homes. There will be white (the new black) SUV's parked in the driveways rather than old Ford Falcons and Holden utes. The nature of the shops is changing. The gyms are offering Pilates; the cafés sell cold press coffee, and the deli's serve goat's cheese pizza. As a property investor, if you can pick an area going through gentrification, one that's shifting from dreary to in demand, you can benefit from its accelerated growth. And the good news is that you don't have to get your timing perfect — the gentrification process lasts a number of decades. Things to look for: Growing incomes Top-end cafes or restaurants and higher-end stores Proximity to the city or the water A ripple effect caused by being adjoined to a more expensive neighborhood Amenities like access to a good public school or public transportation Character features, like older houses that are ready to renovate Investment from the local government in infrastructure or beautification programs What property investors need to know about depreciation: In May 2017, the government changed what could be claimed as depreciation. There are two types of depreciation – depreciation of the building itself, and depreciations of the items inside the property. The changes affected properties purchased after May of 2017. Depreciation deductions have been almost halved for people affected by the changes. If you buy a new property and rent it out, you won't be affected. However, if you buy an investment property and move in before renting it out, it will be considered previously used. Properties built after September 1987 will still have depreciation deductions on the building structure. Improvements on homes built in the 60s and 70s will also qualify for depreciation deductions. If you renovate the property and install new assets yourself, you can claim depreciation deductions on those. Links and Resources: Michael Yardney Metropole Michael Yardney's Property Renovations and Development Workshop Mike Mortlock – MCG Quantity Surveyors Some of our favourite quotes from the show: "Over the last couple of decades, the process of gentrifications saw these ugly duckling suburbs transform into graceful swans." "Just because a suburb is cheap and there are cheap properties there doesn't mean it's destined to become the next growth area." "Don't chase happiness, recognize it. If you don't enjoy the journey, you won't enjoy the destination." 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 Michael Yardney's Property Renovations and Development Workshop Pete Wargent 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.

Many real estate investors and homeowners worry about the value of their property today. But it's important to take a long-range view and think about what the value of property will be in the future. In today's episode, we'll talk about what may happen to property values over the next 25 years and look back at what's happened over the past 25 years. We'll also have a chat with Dale Beaumont about Artificial Intelligence, and how that will change our lives in the coming years. Where will the real estate market be in 25 years' time? While most homeowners and real estate investors worry what the value of their properties today, maybe a better question is "where will property prices be 25 years from now?" And the good news is that, believe it or not, the median house price in Sydney could be over $6 million and the median apartment price in our harbor city could be close to $3.5 million in 25 years' time. Over the past 25 years, the median house value nationally has risen by 412% - an annual growth rate of 6.8% or $459,900 - Melbourne had the highest average annual price growth – 8.1% Sydney 7.6% Perth – 6.7% Hobart – 6.5% Darwin 6.3% Canberra – 6.0% Brisbane – 5.9% Adelaide – 5.9% Think about it - who wouldn't like to buy their parent's house for the price they paid for it 25 years ago? So, what's ahead for property values? If property prices were to rise at the same rate as the past twenty five years, Australia's median house value would reach $2.9 million by 2043. Here's what Aussie's report forecasts: Sydney house values $6.3 million Melbourne $5.8 million Canberra $2.9 million Perth $2.5 million Hobart $2.4 million Brisbane $2.3 million Adelaide $1.9 million How will Artificial Intelligence change our lives? Artificial intelligence is already driving cars, reading emails and suggesting replies, and making phone calls Digital assistants like Siri, Alexa, and Cortana are already mainstream We can look forward to more driverless cars within the next five to ten years People might choose to live further from work if they don't have to drive themselves – driving time can become work time or entertainment time. Artificial intelligence can be taught to learn from the past and make predictions for the future. This can be applied to real estate trends. Artificial intelligence could be used to make phone calls on the behalf of investors to find investment properties that meet certain criteria. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Michael Yardney's Property Renovations and Development Workshop Dale Beaumont Some of our favourite quotes from the show: "Another interesting trend that's occurred – not surprisingly – is that the proportion of first homebuyers in the market currently is less." –Michael Yardney "What's basically happening is that we're trading our backyards for balconies and courtyards to live close to where all of the action is." –Michael Yardney "Sydney's obviously growing at a much faster rate than the national averages and is going to add almost 2 million people to its population by 2037. That's the equivalent of adding a new Perth into Sydney by then. –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

There is plenty of evidence that what we find most stressful as humans is uncertainty, not change in itself. Why do some people seem to sail gently through all the changes life throws at them, while others get upset if they have to change even their breakfast cereal? The key is in how you view change, and your level of acceptance, uncertainty and resilience. In Tom Corley's five-year Rich Habits study of 233 rich people and 128 poor people he discovered that we adopt the beliefs of our parents, family, mentors, culture, and environment. There are two opposing schools of thought that divide mankind. School of Thought #1: Self-Determination Drives Life Circumstances School of Thought #2: Predetermination Drives Life Circumstances Those who subscribe to School of Thought #1: Believe we are in control of our life circumstances. There is no one out there, no higher power, watching over us, guiding us. Those in this school believe success, wealth, failure and poverty are manufactured. We turn left or right, decide A or B, or do X or Y as a matter of free will, instinct or internal guidance. In other words, the circumstances of our lives are dictated by our own decisions, our own behaviors and the choices that we make. We, in effect, create our own destiny. Those who subscribe to School of Thought #2: Believe we are not in control of our life circumstances. Some higher power is watching over us, determining the circumstances of our lives. Those in this school believe success, wealth, failure and poverty are outside our control. We turn left or right, decide A or B, or do X or Y because some force of nature acts upon us, directing us in every aspect of our lives. In other words, the circumstances of our lives are not determined by us, but by external factors we cannot possibly control. We, in effect, are powerless over the course of our lives. When you subscribe to School of Thought #1 you embrace the concept that you are in control of your destiny; that you have power over the course of your life. As a result, you develop a mindset of self-reliance. Through hard work and personal initiative, you seek to create the life you desire. You pursue lifelong self-education, take calculated risks, seek feedback from others and carefully weigh every decision you make. You search for mentors to help you forge good habits that put you on the right path. When you subscribe to School of Thought #2 you embrace the concept that your destiny is predetermined; that you are powerless over the course of your life. As a result, you feel you are not in control of your life. You are a mere victim of the luck of the draw. Because you feel you are not in control of your life, you do very little to affect the circumstances of your life. You float along in life like a leaf on a fall day, carried by the wind. Which are you Something to think about. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Tom Corley Some of our favourite quotes from the show: "You have a future waiting for you and the future is determined by your habits, the way you think, therefore the actions you take, and therefore the results that you're going to get." – Michael Yardney "We are where we are today in all areas of our life, whether it's financial, whether it's relationships, whether it's health, diet, because of all the decisions we've chosen to make, and the decisions we've chosen not to make." – Michael Yardney "The question is, are you an actor in this story that's in your mind, or are you the storyteller whose actually got the right to be able to change the story?" – 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.