Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

As our property markets slow down, more investors are interested in becoming involved in property development as a way of "manufacturing" capital growth. The problem is that along with the big profits there are many potential risks. However with good education, proper planning and a good team around you, property development is a great way to grow your property portfolio and end up having high growth properties that deliver strong cash flow and good tax benefits. So in today's show I'm going to share: 7 reasons you should consider getting involved in property development 13 risks you must be aware of if you're considering getting started in property development 8 tips for budding property developers The benefits of becoming a Property Developer. Savings Profits Easier finance Leverage Tax benefits. Higher rental return Security The risks of becoming a Property Developer. Some of the significant risks of property development I have come across include:- Buying the wrong property – not appropriate for development. Buying the right property at the wrong price Buying at the wrong time of the cycle and not having the finance to hold on to your project Not doing a detailed pre purchase feasibility study – and missing out lots of figures. Building the wrong end product – too expensive, or not right for market demographics A downturn in the property market leading to lower property values or increased holding costs until the development properties are sold. Interest rates rising during the development process resulting in increased holding expenses and therefore lower profits. Increases in construction costs during the project. Changes in the supply and demand ratio for real estate market as we are currently seeing in the inner city apartment market. This of course depresses property values and reduces your project profit margin. Unexpected disputes with building or trade contractors or unions which can cause costly delays to a project. Changes to the laws relating to property development could adversely affect the profitability and viability of your development project. Unexpected delays and increased holding costs may be encountered when town planning (DA) approval is required for a development. Some inexperienced developers find that some of the improvements they have made to their properties do not result in an increase in value. As you can see many of these risks are outside the control of the developer. Hints for budding Property Developers. Here's some advice for new property developers Some property investors move into the realm of property development not understanding the rules of the game are very different. Property development is a great way of building a high growth, strong cash flow property portfolio but you need to approach development will realistic expectations. Currently the tighter finance climate is making it hard for property developers to fund their projects. It is likely you'll need much more equity and serviceability than you think you'll require to get started in property development. A great place for budding developers to start is by getting involved in property renovations, in fact that's how many experienced developers initially learned their trade You'll learn much of what you'll need to know and you'll make most of your mistakes in the first 3 or 4 projects you undertake so start small and don't overcommit financially for your first few projects Property development is a great way to manufacture or create equity, it's not a way to make an income (a living) from adding value and selling. Get a good team around you. The best tip is last – join us at my property renovations and development workshop on October 20th and 21st – it's a training event not a sales event and comes with my personal guarantee Why not learn from a team that's currently involved in over 50 medium density developments and has completed over 700 developments. Join us at our 2-day Property Renovations and Development Workshop, on October 20th and 21st we'll take you through everything you need to know to manage your renovation team, and give you the skills to step up to the big leagues as an investor and property developer. Why not click here to find out more and reserve your seat? Links and resources: Michael Yardney's Property Renovation and Development Workshop Some of our favourite quotes from the show: "Rather than buying properties at retail, when you become a property developer you can acquire your investments at 15- 20% below their market cost." – Michael Yardney "The really smart developers don't sell their projects. They refinance them against their new higher value and take out their extra equity, this equity that they have manufactured by developing property and use it as seed capital for their next project." – Michael Yardney "If undertaken correctly, property development can be very lucrative. If you buy your development site well, your investment will always be underpinned by the security of real esta

"Are property prices about to PLUNGE by 40-45 percent?" Channel Nine's '60 Minutes' ran a feature with the sensational and alarming headline: "Aussie housing prices could fall by as much as 40% in next 12 months" It's déjà vu. Every few months, the media finds someone who's willing to stick their necks out and offer a property market doomsday scenario, predicting the end of the world for property owners in Australia. In spite of the fact that such predictions have been proven wrong time and time again... So, is the sky really going to fall this time? Well, I think it's highly unlikely that the property market will crash. But today I'm chatting with 2 experts, Pete Wargent and Dr. Andrew Wilson to bring some sense back to the discussion. Some highlights from the chat with Pete Wargent Different property markets behave differently, but generally speaking, if you own capital city property, you don't need to worry about a crash. Australians do have higher household debt than people in other parts of the world, but it's important to understand why that is. The government doesn't own most of the housing stock, so most of the rental properties are owned by landlords. This means that Australia will likely continue to have higher household debt than other countries for the foreseeable future. In general, Australia's debt is in the hands of people who can afford that debt – in the upper two quintiles. On the other hand, debt levels haven't really increased in the lower income levels. In international terms, the number of people in mortgage arrears in Australia is very low. Tighter lending standards have caused an intended slowdown in the market, but a crash is unlikely. Some highlights from the chat with Dr. Andrew Wilson Should we be worried – are our property markets about to crash? Looking at the historical data, the most significant fall in house prices since 1986 was 9.6%, and that occurred over 9 quarters. The next highest was 7.2%, and that occurred over 5 quarters. There's no historical precedent for a 40% crash. What's the real story about household debt? Although debt has risen with houses prices, the proportion of household income required to service higher debt has fallen over recent years despite low incomes growth and low real wages Although debt has risen with houses prices, the proportion of household income required to service higher debt has fallen over recent years despite low incomes growth and low real wages And since the last Census, wages are up 4.1% and mortgage rates are down 0.5% with house price growth dissipating. What about mortgage defaults? Are they really a problem? Such a huge volume of garbage is being written, filmed, podcasted, Facebooked, and blogged about mortgage stress right now that it's nigh on impossible to keep up! An important metric to watch is the health of the labour market, with jobs growth still firing along and the unemployment rate continuing to decline to the lowest level since 2012, with further improvements expected over the next year or two. What about the fear of many interest-only loans swapping to principal and interest? Investors who have taken out interest-only loans three or four years ago are in a position where they could repay more because interest rates are lower than when they took them on. Also, they would have more equity in their properties. They have the equity to cover converting into an interest and principal loan and at a lower interest rate. What do you see ahead for our property markets? We're in for a period where prices growth won't be dissimilar from one capital city to another. It will reflect more local factors, like strong economic performance. Links and Resources: Michael Yardney Metropole Property Strategists Michael Yardney's Property Renovations and Development Workshop Pete Wargent Dr Andrew Wilson Some of our favourite quotes from the show: "It's unfortunate to see so many investors buy into this fear mongering and make emotional, sometimes panicking decisions, on the result of this scaremongering." –Michael Yardney "It's the property market's version of the women's magazines that say Jennifer Anniston is pregnant again or Prince Harry and Megan are expecting a baby." –Michael Yardney "I see the coming months as a great time of opportunity if you're looking to buy new investment or upgrade your home, because some people are going to sit on the sidelines, worrying and concerned, by all the scaremongering in the media." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

You've probably heard me say that I believe that property investment is a game of finance - with some houses thrown in the middle. Well, in today's episode I'm going to tell you 10 things your banker won't tell you but that you must know to become a successful property investor. Then Ken Raiss answers a listener's question about whether you're ever too old to invest. And even if you're not wondering if you're too old to invest, there are some great lessons in my chat with Ken. 10 things your banker won't tell you: Bankers can only offer you limited options – they won't tell you what other banks are offering, even if another bank has an option that's better for you Bankers are salespeople – it's their job to sell you financial products There are three doors into the bank: the retail door, the business branch, and the institutional branches Mortgage rates are negotiable An offset account is often better for you than a term deposit Bank fees make a lot of money for the banks Some fees can be waived – but you have to ask Bankers aren't financial advisors The system will decide on your loan application You should shop around for the financial products that best suit your needs The 3 Stages of Financial Freedom Phase 1 – Accumulation. Investing doesn't give you cash flow right away, so you need time to develop your asset base. Phase 2: – Consolidation. You slowly reduce your debt, increasing your cash flow Phase 3 – Living off of your cash machine Links and Resources: Michael Yardney Metropole Ken Raiss – Metropole Wealth Advisory Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "Get a good team of people around you. It's really too hard to do it on your own." – Michael Yardney "Finance is the key to getting involved in renovation and development." – Michael Yardney "When people haven't invested by the time they get to their 50s or 60s, deep down they are probably holding themselves back because of a concern with risk or a concern with debt." – 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 to be the best performing property market over the next couple of years? In today's show, we'll talk about where the best performing market will be, what to do and what not to do if you decide to invest there. In my mindset message I'll explain why everything happens for a reason. And you'll also learn why many Australians are going to remain in debt all of their lives. What investors must understand before buying in Brisbane People are starting to return to Brisbane as employment expands Most of the jobs in Brisbane are within a 10-12 kilometer ring, and that's where people want to settle Brisbane has fewer auctions and more multi-offer scenarios than the southern states Brisbane is prone to flooding and storm water runoff – you need to know what to look for Lifestyle is different in Brisbane, indoor/outdoor living is popular. Brisbane is not Queensland – you can't just invest anywhere in Queensland 5 reasons you'll always be in debt You only make the minimum credit card payment – when you do this, you end up mostly just paying interest, and you don't make any progress on paying off the principle You spend too much on holidays – consider avoiding people and situations that tempt you to overspend You think debt is just a normal part of life – you shouldn't need to rely on debt just to maintain your lifestyle You don't have a contingency fund – emergencies and unexpected expenses will occur. If you have a rainy day fund, you won't need to rely on credit cards when those situations arise You allow expenses to rise with your income – make sure that you aren't adding to your debt by spending more than you need to just because you're making more Links and Resources: Michael Yardney Metropole Michael Yardney's Property Renovations and Development Workshop Michael Yardney's Mentorship Program Brett Warren – Director Metropole Properties Brisbane Some of our favourite quotes from the show: "Remember that people come into your life for a reason, for a season, or for a lifetime." – Michael Yardney "When we're going through particularly difficult times, it can very comforting to thing that there's a purpose to this." – Michael Yardney "The thing about getting into debt is that anyone can do it. The hard bit, of course, is getting out of debt." – 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

Want to become smarter? According to the latest research, you can. Contrary to what was previously believed, your IQ is not fixed. Most IQ tests attempt to measure two types of intelligence - crystallized and fluid. Crystallized intelligence relies on existing skills, knowledge and experience to solve problems by accessing information from long-term memory. Fluid intelligence, on the other hand, relies on the ability to understand relationships between various concepts to solve the problems. It is independent of any previous knowledge, skills or experience and accesses information from short-term memory or "working memory". Researchers have concluded that this part of intelligence can be improved. So how do you do this? That's what we're going to discuss today. When you engage in certain mental and physical activities, the size of your axons grows, the number of dendrites multiply and you increase the number of synapses inside your brain. When your mental and physical activities are limited, your axons shrink, reducing the number of dendrites and synapses. WHAT ACTIVITIES GROW AXONS, DENDRITES AND SYNAPSES? Reading to learn Auditory learning Visual learning Studying (Semantic Memory) Learning a new language Utilizing a new language through repetition or absorption in a new country Traveling – exploring different parts of the world and different cultures (Episodic Memory) Learning a new skill Novelty Daily exercise Engaging in athletic activities Practicing a skill, new or old, repetitively Creative pursuits such as writing, painting, music, engineering, building design, invention, etc. Increasing your communications with others (networking, volunteering, working, social interaction, etc.) WHAT SHRINKS AXONS, DENDRITES AND SYNAPSES? Absence of learning (no reading, no auditory learning and no visual learning) Loss of skills due to inactivity Isolation Being Homebound Being set in your ways – absence of novelty Not exercising No athletic activities Watching TV (exceptions: TV shows that teach) Reading Facebook, Twitter, Snapchat, etc. (exceptions: posts that teach) If you forge daily habits that increase the size of your axons, number of dendrites and the synapses inside your brain, your IQ will grow. Good habits, therefore, can grow your IQ throughout your entire life. Conversely, bad habits can cause your IQ to decrease during your lifetime. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "Interestingly, exercise is one of the actions that can increase how smart you are." – Michael Yardney "When you're a spectator, your brain cells are not growing. In fact, they're shrinking." – Tom Corley "The message today is your IQ is not fixed at birth, it's not related to your genetics, in fact, your habits, what you do regularly can either help you become smarter or less intelligent." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

An insider's guide to renovating properties for profit In today's show, we're going to give you a dose of renovating reality. Renovation can make your property more attractive to tenants, reduce your vacancies, and minimise lost rent. But it's important to approach renovation strategically, so that you maximize the value of your property, without spending more than you need to. Today, we're going to talk about what works and what doesn't, and about the common mistakes that property renovators make. Things to Keep In Mind When Renovating: Avoid over-capitalising.Start with establishing a post renovation market appraisal on the property. Allow for purchase price and any associated costs, interest, marketing or selling fees and a healthy buffer and deduct that from the post Reno market appraisal. What's left is the budget, inclusive of profit for the renovation. As a rule, keeping the renovation budget to 10% of the market value of the home is about Allow a contingency amount. Once a budget is established, allow a contingency based on your experience level and extent of the renovation works. Allow a little more if structural works or there's planning/building approvals required and a little less if the works are purely cosmetic. Remember, renovating is full of variables that not allowed for could quickly make your project unfeasible. Tailor the renovation for the target market. Becoming an expert in the area by attending property inspections of similar properties, discussing the expectations of the tenants with local real estate agents will help determine the scope of works for your renovation. By knowing what the market expects, you can tailor the works to suit that market and therefore not spend on things that may not bring a return on your dollars. First impressions matter. Natural light, fresh paint, new floor coverings and window furnishings go a long way towards transforming a tired old property into something that will be sort after. Often, it's the little things that can make or break a successful renovation. Neutral colours allow tenants to create their own identity with their belongings. Dominant colours and textures tend to close in the wall and makes spaces feel smaller than they are. Kitchens and bathrooms sell properties. Beware diluting your dollar by doing half the job. When assessing the scope of works for your renovation, keep in mind that the two big ticket items, the kitchen and bathroom generally come a package deal. If you renovate the kitchen but leave the original tired and rundown bathroom, it will devalue the kitchen, and vice versa. If the budget doesn't allow for both them, it may be worth deferring renovation works until the budget is healthier or consider undertaking a smaller refurbishment to include repainting, floor coverings and window furniture or air-conditioning to improve the first impression and the feel of the property. Avoid DIY. Unless you're a skilled tradesperson, don't get lured into to misconception that you'll save money by doing the work yourself. TV shows like the block glamorise and simplify the renovation process. In most cases, it will cost you the same or more but always take you longer if you're doing the work yourself, therefore resulting in poor finishes, delayed completion dates and unnecessary holding costs due to the extended completion times. Remove the emotion. Adding value to an investment property or a flipper should be run like a business. There's no room for latest fad in design and you shouldn't be trying to make the cover of Belle magazine, that's for your own home. The purpose of renovating investment properties should always be about maximising both the rental return and capital value of that property. Get a good team around you. Renovation involves coordinating various tradespeople all of which are managing a whole lot of other 'jobs' at the same time. Discuss your schedule and plan for the renovation and seek their assistance and advice. Remember, they're the experts. They've done it before and probably seem the mistakes others have made. By getting close to your trades, you'll avoid falling into the same trap. Stretch. You normally get only one chance per property – do it right and don't skimp Links and Resources: Michael Yardney Metropole Greg Hankinson - Director Metropole Constructions Some renovation case studies 2018 Property Renovations and Development Workshop Some of our favourite quotes from the show: "Over the years I've found that renovating is full of variables. Things crop up that you didn't foresee, and it suddenly makes what looked like it was going to be a great project not profitable." – Michael Yardney "It's not what you like; it's actually what the target market would like." – Michael Yardney "You're not going to get two dollars back for every dollar you spend, despite what some of the magazines and some of the seminars will tell you." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because

What is currently the most desirable location in Sydney? The answer may surprise you. Areas like the eastern suburbs of Sydney or the lower north shore may immediately spring to mind. And yes, they have been and will continue to be desirable due to their affluence. However, there is no doubt that the underestimated location in question, which has long been the underdog, is now dominating livability studies due its cultural amenities, transport options and great value. Have you figured it out yet? Well, it is none other than the inner west of Sydney. The inner west is emerging as one of the most sought-after local government areas in Sydney. From Dulwich Hill to Newtown, Leichardt to Balmain, the metropolitan area directly west of Sydney CBD is now starting to shine as the 'Europe' of Sydney. Domain suggests that "the unassuming inner west may once have been overshadowed by the flashy eastern suburbs, the bohemian inner city and the blue-ribbon lower north shore. But in recent years, this cluster of neighbourhoods stretching due west of the CBD has emerged as Sydney's liveliest and most livable precinct – and, for many prospective buyers, it's now their top pick." So, what makes the inner west so desirable? Let's run through a few pointers. Love it or hate it, the inner west has the reputation of being the most liberal, socialist, green, intellectual part of Sydney. Accordingly, the area has become increasingly gentrified over the past decade. The inner west shares the livability and similar cultural amenities to affluent areas like the Eastern Suburbs and Lower north shore but at a much more affordable price point making it fantastic value for owner occupiers and investors alike. First home buyers are also finding that their money stretches further in the inner west. The inner west is one of the oldest areas of Sydney with the architecture ranging from art deco apartments, terraced houses and small mansions that reflect its development in the Victorian and Federation periods. This adds to the inner wests appeal and scarcity value. The region's unique housing attributes are also helping it pull ahead of the pack. Much of the terraced housing stock in suburbs such as Newtown and Annandale dates back to the 1860s and has become coveted by affluent buyers seeking historic charm coupled with low-maintenance living." It is one of the few local government areas that has access to Bus, ferry, light rail, train and cycle paths. Transport infrastructure within the inner west has never been stronger with locals seeing the benefit as Sydney's population continues to swell. "There's a lot to be said for excellent public transport, no matter your income level. The buses are excellent. The light rail gently wends its way from Dulwich Hill to the city. The Inner West train line connects even more suburbs. And people in Rozelle and Balmain can catch the ferry. All that choice is very attractive." The inner west has certainly proven to be an investment grade area that is both strong in having wealth building rates of growth but also stable, in that due to its local economic growth drivers will not fluctuate in value as much as the outer suburbs of Sydney. Success Is Easy, But So Is Neglect Jim Rohn suggests that when giving the choice of "easy to" and "easy not to" that you don't neglect to do the simple, basic, "easy"; but potentially life-changing activities and disciplines Pros and Cons of Rentvesting in Sydney Pros: You can enter the property market sooner You can live the lifestyle you want in your dream home without waiting You'll be able to start building wealth sooner You can save for your dream home while you rent You have more flexibility to change your living situation if your circumstances change You have the freedom to move around if you're not ready to settle down in one spot You can take a tax deduction on the interest payments on your investment property loan If you want to live in an area that isn't a great spot for investment, you can live in one area and invest in another Cons: Buying an investment property before buying your own home may seem counter-intuitive Rent money is often considered "dead money", and this can be a sticking point for some people You may eventually have to move out of a rental home that you've formed an emotional connection to You're limited in how much you can renovate or upgrade a rental home Links and Resources: Michael Yardney Metropole Ahmad Imam – Director Metropole Property Strategists - Sydney Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "The way one lives in Sydney has evolved, so more people are happy and expecting to live in apartments in Sydney, as they would in any other major metropolis in the world." – Michael Yardney "One of the things I want to point out is that it's always been harder for first-time buyers, and study after study has shown it's really not harder today than it was 40-50 years ago." – Michael

Today I explain How to Profit from Property Development in the current property markets. Listen in as I chat with property development expert Bryce Yardney and we discuss: Why more investors are keen to get started in property renovations or property development. The importance of learning from trusted educators and mentors rather than the new breed of "get rich quick educators." The four different levels of property development available to investors The benefits of becoming a property developer The big risks involved in property development at this stage of the cycle. What is required to fund a property development project. I also walk through my 8 stages of the property development process Pre Purchase Concept stage Purchase Town planning Working Drawing and documentation Pre Construction Stage Construction Completion Links: My Property Renovations and Development Workshop

Have you ever wondered how property professionals do their research? If you're interested in finding properties that will outperform the market, this episode is for you. The most research many property investors do is finding a property that they already like, then looking for information that confirms their biases. However, sophisticated investors take a more strategic approach. Today, Kate Forbes, National Director of Property Strategy at Metropole, gives us a detailed picture of how the professionals at Metropole do their research. Metropole's top down approach This starts with examining the macro factors affecting our property markets and drills down to the micro level. Start by looking at the big picture – the macro-economic environment. Look for the right state in which to invest – one that will outperform the Australian market averages because of its economic growth and population growth. Within that state, look for the suburbs that will outperform with regards to capital growth. It's all about demographics. These suburbs tend to be areas where more owner-occupiers want to live because of lifestyle choices and where the locals can afford to and will be prepared to pay a premium to live because they have higher disposable incomes. Look for the right location within that suburb. Some livable streets will always outperform others and in those streets, some properties will always be more desirable than others. Then within that location look for the right property. And finally, only buy at... The right price, but I'm not suggesting a "cheap" property – there will always be cheap properties around in secondary locations. I mean the right property at a good price. 6 Stranded Strategic Approach Only buy a property: That would appeal to owner occupiers. Not because you plan to sell the property, but because owner occupiers will buy similar properties pushing up local real estate values. This will be particularly important in the future as the percentage of investors in the market is likely to diminish That is below intrinsic value – that's why you should avoid new and off-the-plan properties which come at a premium price. With a high land to asset ratio – that doesn't necessarily mean a large block of land, but one where the land component makes up a significant part of the asset value. That is in an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area as mentioned above. That has a twist – something unique, or special, different or scarce about the property, and finally; Where you can manufacture capital growth through refurbishment, renovations or redevelopment rather than waiting for the market to do the heavy lifting as we're heading into a period of lower capital growth. By following my 6 Stranded Strategic Approach, you minimise your risks and maximise your upside. Each strand represents a way of making money from property and combining all six is a powerful way of putting the odds in your favour. If one strand lets you down, they have two or three others supporting their property's performance. When you look at it this way, buying a property strategically takes a lot of time, effort, research and something most investors never attain – perspective. What I mean by this is you can gain a lot of knowledge over the Internet or by reading books or magazines but what you can't gain is experience. It takes many years to develop the perspective to understand what makes an investment grade property. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Kate Forbes Some reading: Your Essential Guide to Property Research 5 Important Research Topics for Property Investment Success Some of our favourite quotes from the show: "We're not looking for properties that are affordable to everybody, we're looking for areas where people have got a high disposable income and can afford to, but more importantly are prepared to, pay a premium." – Michael Yardney "If you buy a property to which you can add value through renovations or refurbishments, that will allow you to add some capital growth." – Michael Yardney "Understanding the neighborhood is not the same as understanding the market. You may understand where the shops are and where the school zones are, but that's very different to understanding the depth of the market." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it's your way of passing the message forward to others and saying thank you to me. Here's how.

What's the secret to success? What does success mean to you? Is it money, fame, travel, relationships, or the freedom to do what you want when you want? Different people think of success in different ways, but most people are after success in some form. In today's episode, I'll be chatting to entrepreneur Dale Beaumont, as he shares the seven secrets to success he's learned from working closely with many, many successful people. Dale Beaumont is a technology entrepreneur, a speaker, and an author. He began his first business at the age of 19 and has been building businesses ever since. One of his companies has become a multi-million-dollar enterprise, which has allowed him to become an investor and philanthropist. He has already mentored many people and is hoping to help one million entrepreneurs around the world with his app Bizversity. Dale's 7 Essential Characteristics of Highly Successful People: Desire: You really have to want to achieve and be willing to do whatever it takes. Determination and resilience: Your success journey won't be easy. There will be challenges, roadblocks, and failures. You need the determination and resilience to be able to push through those challenges even when things look like they aren't going to work out. Be an action-taker: It's not enough to seek out good advice and training – you need to act on it. Don't get so hung up on thinking about how to achieve success that you never end up taking action. Self-education: Formal education is important and has its place, but the education you receive outside of formal education that can make the difference to your success. Likeability: You can't achieve success alone. You need a team. And the team that will work best for you is a team that actually likes you. It's important to treat people well and earn their trust. Systemization: It's important to use your hours in the most efficient way. Focus: You only get paid for the projects that you complete. It's important to develop the focus that you need to see things through to the end. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Dale Beaumont Bizversity Some of our favourite quotes from the show: "One of the common traits I've found of all successful people is they do have coaches, they do have mentors, they do have advisors, and they're actually prepared to pay for them." –Michael Yardney "We all want a better life. We all want more success, whether it's in business, in property, or in relationships. But the question is, how far are you prepared to go?" – Michael Yardney "We tend to get bored with doing things the same way and look for shortcuts or other ways, so I've actually found systems in my business being a very great way of making sure that people just do it right, including myself." – Dale Beaumont

This stage of the property cycle isn't as much fun as the last couple of years when things were booming – is it? Many investors are having difficulty getting financing to start their portfolio or grow it. And capital gains aren't assured, so where do you buy? By the end of this show, you'll have more clarity about what's ahead and where to buy. Top Tips for getting finance in the changing landscape Seek professional advice Be prepared to justify and articulate your expenses Consider principle and interest loans rather than just interest-only loans Interest-only loans can have benefits as well Set up an offset account Choose the right investment-grade properties Make sure that you have financial buffers in place Being turned down is sometimes for the best – regulations exist for good reasons Avoid misreporting or misinformation and be prepared for heightened scrutiny Have your properties re-valued regularly Have a property strategy, an ownership structure strategy, and a finance strategy in place. Treat your property investment like a business. 3 Success tips To succeed in business or investment, you need to model successful people. Find people who have achieved what you want to achieve and follow what they do. Most people overestimate what they can do in 12 months and underestimate what they can do in 10 years. It takes time to gain traction. Most people are not successful. Identify the wrong strategies that most people are using and do the opposite. Not all land is created equal Overall, the inner and middle ring suburbs of big capital cities are the best places to invest. Most of the jobs are in capital cities, so that's where migrants want to live. It only makes sense to invest in areas where people who want to live. Properties closer to the CBD and closer to water increased in value faster than those further from the CBD and further from water. Suburbs with better infrastructure, shopping and amenities tend to be close to the CBD and the water. That's where the wealthy want to and can afford to live, and they'll pay a premium to do it. Links and Resources: 2018 Property Renovations and Development Workshop Michael Yardney Metropole Michael Yardney's Mentorship Program Intuitive Finance Some of our favourite quotes from the show: "So one of the things you should do when you go to your finance strategist or the banks is to actually understand what your income and expenses are, have your tax returns done, have all your paperwork ready, because they're looking at it much more carefully." – Michael Yardney "Going to the bank and asking for the biggest loan you can at the lowest interest rate possible isn't a finance strategy. You'll buy a property, and then you're going to get stuck. – Michael Yardney "If you've got your ladder against the wrong wall, every step you take will get you a step further away from where you want to go." – Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Will your child be rich or poor? If you're a parent or a grandparent or planning to become one, this show is for you. I believe it's our job to teach our children good money habits. And even if you're not planning to become a parent, Tom Corley and I will be discussing some important money lessons in this Rich Habits Poor habits podcast. So let's talk about children…. Science shows that by the age of nine we have learned most of our habits. These habits come from our parents. We mirror our parents thinking, habits, and emotions. The beauty of rich habits is that you only need one or two of them to transform your life. Habits like reading and exercising will change your future. But emulating bad habits can force you into a situation where you have to eke out a living. It gets even worse. Sadly, 74% of children raised in a poor household had grades below a B and 34% had grades below a C. Why? Wealthy, successful parents teach their children certain success habits that give their children an edge in life. These Rich Habits, which give them this edge in life, begins to manifest itself in the classroom and continues into the workplace, where such children become working adults who receive higher pay, bigger raises and larger bonuses during their working career. As a consequence, they accumulate more wealth in life. Will your child be Rich or Poor? Every student wants to be successful and thinks they will be successful, but none have been taught by their parents or their school system how to be financially successful in life. Not only are there no courses on basic financial success principles but there are no structured courses teaching basic financial literacy. We are raising our children to be financially illiterate and to fail in life. We don't have a wealth gap in this country we have a parent gap. We don't have income inequality, we have parent inequality. Parents and our schools need to work together to instill good daily success habits. They need to be teaching children specific Rich Habits that lead to success. Examples of Rich Habits: Limit TV, social media, video games and cell phone use to no more than one hour a day. Require that children read one non-fiction book a week and write a one-page summary of what they learned for their parents to review. Require children to aerobically exercise 20 – 30 minutes a day. Limit junk food to no more than 300 calories a day. Teach children to dream and to pursue their dreams. Have them write a script of their ideal, future life. Require that children set monthly, annual and long-term goals. Require working age children to work or volunteer at least ten hours a week. Require that children save at least 25% of their earnings or the monetary gifts they receive. Teach children the importance of calling family, friends, teachers, coaches, etc., on their birthday Teach children the importance of calling family, friends, teachers, coaches, etc. when anything good or bad happens in their lives. Examples include births, deaths, awards, illnesses, etc. Teach children to send thank you cards to individuals who helped them in any way. Reassure children that mistakes are good and not bad. Children need to understand that the very foundation of success is built upon the lessons we learn from our mistakes. Discipline children when they lose their temper, so they understand the consequence of not controlling this very costly emotion. Anger is the costliest emotion. It gets people fired, divorced and destroys relationships. Teach children that the pursuit of financial success is a good thing. Children need to learn how to manage money. Open up a checking account or savings account for children and force them to use their savings to buy the things they want. This teaches children that they are not entitled to anything. It teaches them that they have to work for the things they want in life, like cell phones, computers, fashionable clothes, video games, etc. Require children to participate in at least one non-sports-related extracurricular group at school or outside of school. Parents and children need to set aside at least an hour a day to talk to one another. Not on Facebook, not on the cell phone, but face to face. The only quality time is quantity time. Teach children how to manage their time. Teach them how to create a daily "to do" list. They can put their "to-do" list on their bedroom door, so parents can check it each day. OBVIOUSLY, IT IS NOT POSSIBLE TO FOLLOW EVERY RICH HABIT RECOMMENDATION LISTED ABOVE. All it takes is one or two Rich Habits to completely transform a life. The reading habit, on its own, can set your children up for career success. The savings habit, on its own, can set your children up to be financially independent. The exercise habit, on its own, can set your children up for a long, healthy life. The happy birthday or life event calls, on their own, can set your children up to forge strong relationships. Pick just two habits to teach you kids and stay o

Are you where you want to be financially? If not, what's holding you back? That's what we're going to talk about in today's show. If you're like most Australians, you're probably not where you expected to be financially. Even if you're doing well, understanding behavioural finance can help you do better. We make thousands of decisions every day. We usually make these decisions with almost no thought and this can lead to predictable errors in certain circumstances. Confirmation Bias: The tendency to search for information that confirms your view of the world and ignore what doesn't fit. Confirmation bias also prevents us from looking objectively at an investment we've already made. Once we've bought a property we look for information to confirm that we've made a good investment while as the same time ignoring information that may indicate the investment may be a questionable one. Anchoring Bias: The tendency to use anchors or reference points to make decisions and evaluations, even though sometimes these lead us astray. The first number you see, especially when it's a price that comes up in negotiation, colours any that come after it. A high anchor influences you to spend more than you normally would. Whether we like it or not, our minds keep referring back to that initial number, and perceive any subsequent offers as being a discount or a deal, even if they're objectively still too high. Awareness Bias: There's a chance that even if your investments are not doing so well, you may not even recognise it. it's been shown the poorest performers in all arenas of life are the least aware of their own incompetence. Lacking the capacity to realise how badly a task is performing is known as the Dunning-Kruger effect. Positivity Bias: Many people view residential real estate positively, considering it an asset class through which they can grow their wealth – and they continue to do view it in this light, even if their investments fail to prosper. Positivity bias can stand in the way of an investor taking action to rectify the situation. Negativity Bias: Just as some investors can be overly positive this is the tendency to put more emphasis on negative experiences rather than positive ones. People with this bias feel that 'bad is stronger than good' and will perceive threats more than opportunities in a given situation. Status Quo Bias: This describes our tendency to stick with what we know, whether or not it's the best course of action. Psychologists call this "loss aversion" and it explains why so many Australians are willing to stick their money in a plain old bank account earning minimal interest, rather than taking the "perceived risk" of a property investment. Survivorship Bias: The misconception here is that you should focus on the successful if you wish to become successful, while the truth is that when failure becomes invisible, the difference between failure and success may also become invisible. The trick when looking for advice is to not only learn what to do, but also look for what not to do. Bandwagon Bias: This is the psychological phenomenon whereby people do something primarily because other people are doing it. This tendency of people to align their beliefs and behaviours with those of a group is also called "herd mentality." Restraint Bias: Following on from bandwagon bias, restraint bias is the tendency for people to overestimate their ability to control impulsive behavior. Psychologists say the very people who think they are most restrained are also most likely to be impulsive. The Ostrich Effect: When an ostrich is scared, the bird supposedly buries its head in the sand to stay ignorant of the approaching threat. While we simply don't have the neck length to literally stick our heads in the sand, people often deliberately look away from their money problems. Choice-Supportive Bias: This is the tendency to prefer the things you own (even if they have flaws) over the things you don't, because you made "rational" choices when you bought them. You may be convinced the investment you've just made is great because you spend so much time, research and emotion in selecting it. You rationalize your past choices to protect your sense of self. Clustering Illusion: This is the tendency to see patterns in random events. This selective thinking can lead to wrong conclusions when faced with the multitude of mixed messages we receive about the property market. Curse of Knowledge: You suffer from the curse of knowledge when you know things that other people don't and you've forgotten what it's like to not have this knowledge. Highly intelligent people often have difficulty asking for help or taking advice because they think they should be able to work things out for themselves. Overconfidence: One of the worst things that can happen to an investor is to get it right the first time they buy a property. This often happens when you invest during a property boom because you tend to think you're smarter than you are.

This week I explain How to Profit from Renovations in the current property markets. Listen as I discuss: My 8 step process for profiting from renovations. 5 tips for successful renovations Why renovations make sense in today's property market The one thing that many renovations courses teach that is patently incorrect. I explain the 4 big benefits of renovations: - Increasing the rental return and therefore yield of your investment property Increasing the aesthetic appeal of the property and thereby attracting a wider tenant pool and often a better-quality tenant. Increasing your depreciation allowances. "Manufacturing" capital growth thereby increasing the overall value of your property, even in a flat market. I also walk through my 8 Step renovation process Why – what is your reason Preparation - finance & structures Where? Research target areas–due location diligence What - Find a property with value add potential – due diligence analyze Purchase – at "wholesale" Plan & Budget – consider your target market and end values The renovation process – create a higher and better use Post Renovation – my preferred strategy is lease, refinance and repeat Watch out next week for the second of this 2 part series where I discuss the 9 Step Property Development Process Links: My Property Renovations and Development Workshop

Where will our property markets be in three years? We're going through a bit of a rough time in the property cycle at present, which leaves a lot of people wondering what comes next. The availability of credit has tightened, and we're in the face of slumping prices in some places and slower growth in others. But don't panic. The market is behaving normally. Thoughts about where we'll be in three years: BIS Oxford Economics suggests that we're in for a soft landing. House growth prices in Sydney and Melbourne are falling gently, and that trend looks like it will continue, thanks to APRA's tighter lending restrictions. Taking inflation into account, there will probably be modest declines in most capital cities over the next 12 months, and then fragmented price growth over the next three years. Although there is housing oversupply, population growth over the next few years should absorb that. The downturn in Sydney will probably continue over the next year before starting to rise again. BIS predicts Sydney's median will fall by 2 per cent in the next financial year (2018/19), but an undersupply of dwellings will prevent larger price falls. Areas that have shown and proven themselves, like suburbs in the middle and inner rings of Sydney, will continue to make the best investment properties. BIS predicts that the Melbourne property market will grow by 6% between 2018 and 2021. BIS's forecast is that Brisbane will see the strongest growth over the next three years, jumping 13% to a median of $620,000. Jobs creation and a low unemployment rate are contributing to the steady population growth driving demand. Canberra house prices are forecast to increase 5 per cent over the next financial year before slowing over the following two years, culminating in an overall rise of 10 per cent by 2021. Perth house prices have declined by 13 per cent since 2014 but the worst could be over. House prices in Hobart are set to rise by 5 per cent over the next year, and then slow in following years. House prices in Adelaide are expected to grow by 9 per cent by 2021. Prices in Darwin are forecast to remain flat over the upcoming financial year, followed by two years of limited growth. Guest Experts: Kate Forbes – National Director Metropole Property Strategists Brett Warren – Director Metropole Properties Brisbane Ahmad Imam – Director Metropole Properties Sydney Links and Resources: More details of the BIS Oxford Report Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "Periods of strong capital growth, like we've experienced in many of our capital cities over the last couple of years, are always followed by periods of flat growth, or sometimes no growth, or falling property prices. That's just how markets work." – Michael Yardney "Meteorologists tend to predict the weather better than property commentators predict future property capital growth." – Michael Yardney "What pushes property prices up is people's ability to afford more property, and their desire to live in certain locations." – Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Today is the first birthday show of the Michael Yardney Podcast. Rather trying to come up with something new, I decided to try and distill the information, investment philosophies, tips and tricks that I and my guests have shared with you over the past year. As you listen to today's show you'll hear some of the most important insights I've shared over the past 52 weeks, all in one episode. I've called it…. The Rules of Property Investment Become financially fluent The secret to financial freedom is to spend less than you earn, save the balance and then wisely invest your savings in growth assets. Learn how money, finance and property works and start investing early so you have time and compounding on your side. Adopt a proven investment strategy Smart investors follow a system to take the emotion out of their decisions and ensure they don't speculate. This may be boring, but it's profitable. Wealth is created by building a substantial asset base. You do this by holding good investments for a reasonably long time, reinvesting the income you're receiving and allowing your capital gains to build up. Residential real estate is a high growth, relatively low yield investment, so I recommend a capital growth investment strategy. There is not one property market. While many people generalise about "the" property market there are many submarkets around Australia. Each state is at a different stage of its property cycle and within each state the markets are segmented by geography, price points and type of property. Not every property is investment grade Remember that while the location of your property will account for around 80% of its performance, it's also important to own the right property to suit the local demographic. There are around 9.6 million dwellings in Australia and at any time there are about 250,000 properties for sale. But not all properties make good investments! In fact, in my mind less than 2% of the properties on the market currently are what I call "investment grade." While there are a lot of properties built specifically built for the investor market – think the many high rise new developments that are littering our cities – most of these are not "investment grade." Some would call these properties "investment stock" – they are what the property marketers and developers sell in bulk to naïve investors, but they are not "investment grade" because they have little owner occupier appeal, they lack scarcity, they are usually bought at a premium and there is no opportunity to add value. On the other hand, investment grade properties: Appeal to a wide range of affluent owner occupiers Are in the right location. By this I don't just mean the right suburb –one with multiple drivers of capital growth – but they're a short walking distance to lifestyle amenities such as cafes, restaurants and parks. And they're close to public transport – a factor that will become more important in the future as our population grows, our roads become more congested and people will want to reduce commuting time. Have street appeal as well as a favourable aspect or good views. Offer security – by being located in the right suburbs as well as having security features such as gates, intercoms and alarms. Offer secure off-street car parking. Have the potential to add value through renovations. Have a high land to asset ratio – this is different to a large amount of land. I'd rather own a sixth of a block of land under my apartment building in a good inner suburb, than a large block of land in regional Australia. Demographics drives markets Over the long-term demographics – how many of us there are, how we live, where we want to live and what we can afford to live in – will be more important in shaping our property markets than the short-term ups and downs of interest rates, consumer confidence and government meddling. More of us are going to live in our capital cities, rather than regional Australia and the bulk of the population growth will occur in the big 3 east coast capital cities because that's where the economic growth and jobs growth will occur. Real estate investing is a game of finance with some properties thrown in the middle. Strategic investors recognise that property is a long-term play, so they use finance to not only buy themselves properties but to buy themselves time to ride the ups and downs of the property cycle. They set up financial buffers to help you ride the property cycles. And they also protect their assets by owning them in the right ownership structures. For many this is in trusts. Take a long-term perspective Real estate is a long-term investment, yet some investors chase the "fast money." The property market moves in cycles and even though there are a few years of flat or falling property prices every decade, well located real estate has increased in value on average by around 8 per cent per annum over the long term. Imagine if you could buy the house your parents bought at the price they paid t

Are great property investors born or made? Can anyone achieve success in property investing? That's one of the topics we're going to discuss on today's show. I'm also going to share a lesson I learned when one of my mentors asked, "where are you going to be in 10 years' time?" Are you walking down the right road to arrive at the place you want to be? Finally, Ken Raiss of Metropole Wealth Advisory is going to join us to answer a question about ownership structures. Are great property investors born or made? Napoleon Hill discovered that successful investors, entrepreneurs, and business investors share common characteristics Successful investors aren't born with these characteristics. That means you can learn them by doing what successful people do In order to become successful, you need to put in the work. It takes time and practice to develop success strategies. Successful investors learn the rules, gain experience, and refine and improve their strategies You can gain expertise by getting a mentor and learning from their successes and mistakes. Study their mistakes and emulate their behaviors. You'll know you're an expert when you can consistently outperform the averages Where will you be in 10 years? You can't kid yourself about where you're going, because you're going to wind up there eventually. Look around and be honest with yourself about the path you're on Avoid engaging in disillusion. Don't hope without acting or wish without doing Ask yourself you can be doing to get the things that you want Take advantage of the wealth of information available. Read books and blogs, listen to podcasts, attend seminars, watch videos, get mentors Avoid disinformation. There's a surplus of widely available information, but not all of it is good. Choose successful mentors and seek out good information What are the benefits of owning an investment property in different entities, such as in a personal name or a trust? When choosing an ownership structure, it's important to understand what you're trying to achieve Buying in a personal name is the simplest path, but that doesn't mean that it's always the best Owning in a company is rarely the best way to own investment property There are three types of trusts: a unit trust, a discretionary trust, and a self-managed superfund A trust is only as good as the words used to write it, so it's important to have someone who is skilled with writing trusts write yours Begin with the end in mind. Consider which ownership structure will best suit where you plan to be in 5, 10, or 20 years and go with that, even if it isn't optimal in the moment. Links and Resources: Michael Yardney Metropole Ken Raiss, Metropole Wealth Advisory Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "The way to become an expert is to do one thing 100 times, rather than 100 things once." -- Michael Yardney "The main thing that separates successful investors from the wannabes is the ability to consistently outperform the averages. And yes, to get to this level of expertise, it takes time, patience, and practice." -- Michael Yardney "Where are you going? Because 10 years from now, you're surely going to have arrived." -- Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Yes it's true that 1% controlled 82% of the wealth in the world. I just finished reading an article complaining about the rich. In the author's mind, there was something inherently unfair about this wealth inequality. The author, like many who are not in the 1%, felt that the wealth the 1% created didn't necessarily belong to them and offered government solutions to cap or redistribute the wealth of the rich. The problem is... the top 1% will always control most of the wealth until the other 99% figure out how the 1% go about cultivating wealth. So, how do the 1% cultivate wealth? The top 1% cultivate wealth by doing certain things: Read to Learn Every Day — 88% of the rich in my Rich Habits Study read 30 minutes or more every day to learn. Reading is work. But it's work that is necessary if you want to become rich. Rich people read because they know that knowledge can be leveraged to gain wealth. The more you know about your field, career or industry, the more valuable you are to those you service or sell to in your field, career or industry. Deliberate Practice — 69% of the rich in my study practiced some specific skill for two or more hours every day. Deliberate practice requires conscious practice as opposed to unconscious practice Conscious practice is practice in which you study everything you do that goes into the skill you have. It's about studying the intricate details that enable you to become a virtuoso at what you do. Pursue Long-Term Goals or a Dream — 70% of the rich in my study pursued some long-term goal or some dream. This is what really drives the disparity between the 1% and the other 99%. Pursuing big goals or dreams creates the opportunity for good luck to happen. The majority of the 1% are beneficiaries of good luck – but good luck they put themselves in a position to receive. Focus on Daily Goals — 62% of the rich in my study focused on their daily goals. Save — 94% of the rich in my study saved 20% or more of their income every year. Be Frugal with Your Money — 67% of the rich in my study were frugal with their money. They spent their money thoughtfully, not emotionally. They buy the best made quality products at the cheapest prices. This requires study and patience and delayed gratification. Forge Rich Relationships — 68% of the rich in my study forged relationships with other upbeat, success-minded people. These are people who can open doors for you. They are individuals who are either trying to become the 1% or are the 1%. These 1% have powerful relationships with other 1% individuals. dream-clock-time-business-man-life-motivation-happy-dream Volunteer — 72% of the rich in my study volunteered 5 hours or more a month. Why volunteer? Most of the boards and committees in local non-profits are run by successful people within the community. 5 AM Club — 44% of the rich in my study woke up 3 or more hours before they began their work day to pursue dreams, goals, read, be productive, etc. Waking up early is important. It allows you to get things done first thing in the day that help move you forward in life. Become a Decision Maker at Work — 91% of the rich in my study were one of the decision makers where they worked. If you want to control the outcome of your life you need to be a decision-maker. Do Work You At Least Like — 86% of the rich in my study liked what they did for a living. When you like what you do, you will devote more time to doing it. More time in honing your skills. More time in reading to learn everything about your vocation. More time in building relationships with other success-minded people within your industry or field. More time devoted to improving yourself makes you more valuable. Everyone wants to be on top of the mountain, but few are willing to make the climb. The 1% control 82% of the wealth because the 1% are willing to climb the mountain. If you want to be one of the 1%, you need to start climbing. You need to do the things that cultivate wealth. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "One of the things the papers forget to mention is, if you're listening to the podcast or reading their articles, you're probably already in the top 1% in the world." "School's not out when you leave school or leave college. You have to keep continuously educating yourself." – Michael Yardney "It's often said that you're like the five people you spend most of your time with." – Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Success is not a miracle. Nor is it a matter of luck. Everything happens for a reason, good or bad, positive or negative. And it's the same with success in property investment. While real estate is generally considered a sound investment, only a small number of those who get involved eventually develop financial independence. It probably won't come as a surprise that when you study those who have achieved financial freedom through property investment, you will find they come from a variety of backgrounds, walks of life and educational standards, but there are certain traits shared by all these successful property investors. If you want to join the ranks of these investors you need to model them - you need to copy those who have achieved the success you desire. So, in this week's show I am going to discuss the habits these wealthy investors share in common. 18 Habits Shared by Successful Investors: Successful investors have a strategy. Defined goals and a wealth creation plan help investors see the big picture, maintain focus on their goals, and make purchases based on proven criteria rather than emotions. Successful investors treat their investments like a business. Investors who approach their property investments with a business plan are able to identify their objectives and define strategies to meet those objectives while successful navigating financial, tax, and legal systems. Successful investors keep educating themselves. Learning by making mistakes is a slow and demoralizing process. Investors who invest time and effort into their continuing education and into learning from mentors and mastermind groups can achieve more in a shorter period of time. Successful investors think big. Financial freedom is a big goal. Successful investors aren't satisfied with small achievements and aren't afraid to paint a bigger picture for themselves Successful investors know their markets. Sound investment decisions are based on facts, not feelings. A greater understanding of a particular market allows the investor to make smart decisions within that market. Successful investors develop a focus or niche. There are many ways to invest in real estate. The most successful investors don't try to do all of them, they learn everything about a certain type of investment and focus on becoming an expert in that niche. Successful investors understand the risks. The business of property investment comes with fluctuating interest rates, changing property cycles, and various "X factors" that can derail otherwise good plans. Successful investors understand these risks and take precautions to mitigate them. Successful investors take full responsibility for their lives. Blaming others for your circumstances leaves you feeling out of control. Taking responsibility for yourself allows you to take control over your circumstances and reduce the number of bad situations you encounter while increasing the good. Successful investors are decisive. Indecision leads to inaction. It's impossible to make good decisions one hundred percent of the time, but you should make the best decisions you can at the time and stick by them. Successful investors deal with problems when they arise and move on from them, rather than beating themselves up over bad decisions. Successful investors find opportunities where others see problems. Instead of focusing on the problems with an opportunity, look for ways to make the situation work. Successful investors are those who find hidden opportunities that other buyers don't see. Successful investors embrace change. Change is inevitable. Successful investors find ways to take advantage of the opportunities presented by change, even when it means moving out of their comfort zone. Successful investors invest, they don't speculate. Speculation is based on hoping that you correctly pick out the next hot spot or big trend. Investment is based on known facts. Investment may be less exciting than speculation, but it's also considerably less risky. Successful investors build a competent team around themselves. No one can be an expert in everything. Successful investors surround themselves with trustworthy people who know more than they do, so they can focus on their own areas of expertise. Successful investors have learned to use debt wisely. Learning how to use other people's money to grow a substantial property portfolio is a hallmark of successful investing. Successful investors belong to a mastermind group. When you surround yourself with like-minded people who are successful, you'll learn from them. Successful investors surround themselves with winners and copy their habits. Successful investors act with integrity. Standing by your claims helps you stand out from the crowd. Successful investors make commitments and stick to them. Successful investors see the big picture. Property values can take time to increase. Successful investors have the patience to see the end goal and wait for it, rather than trying to cash out f

Everyone knows that location is critical when selecting an investment property that will outperform. But what makes a good location and why are some locations better prospects than others? When I started investing around 40 years ago the emphasis for homebuyers was largely affordability and proximity to infrastructure. The outer fringes of our capital cities were developed in the wake of freeway extensions on all sides and commuting from vast, newly born suburbs into the CBD became commonplace. As far as amenities went, as long as you had a relatively easy drive to your place of employment, as well as nearby shops, healthcare services and schools, life was pretty good. It's different today Nowadays the property choices Australians make are still driven by lifestyle, but how we think and function in today's world has changed. With more than half Australian households having only one or two people in them, more of us are: Choosing to start a family later in life. Enjoying the opportunity to work flexible hours and from home offices. Seeking better work-life balance and prioritising downtime before overtime. Opting to live within walking distance from not only infrastructure necessary for daily living, but also cafes, restaurants and recreational facilities, as lifestyle moves to the top of the owner-occupier and tenant wish list, alongside affordability. Downsizing to easily maintainable and cost-effective apartments and townhouses, with smaller gardens and more efficient, compact design. A short stroll to success This means that "walkability" has become the new buzzword on the property investment block. Of course, proximity to amenities such as shops, parks and public transit that allows local residents to either walk or take a short train, bus or tram ride, has long underpinned property values in inner city neighbourhoods throughout the developed world. But now we are witnessing a similar trend across an increasingly cosmopolitan Australia. In fact, it is common for a considerable premium to be paid for properties that are a short walk to the beach or café strips and long-term capital growth figures show that in Sydney the city's most "walkable" suburbs have outperformed the averages by up to 20%. Where it's "at" – the café culture It should come as no surprise that as our lives become busier and time is in increasingly short supply, cafés have become a kind of transition point where we meet up with friends, family and often business associates for a "catch up". Many city dwellers have their favoured haunts, where they're on a first name basis with the local barista and have a "regular" order. The serving and consumption of coffee has become somewhat of a ritual and many of us fancy ourselves as coffee connoisseurs. Given that more of us are living alone or in smaller households, it's not surprising that the relaxed, "home away from home" vibe of inner city cafes is becoming an increasingly popular draw card for those seeking a familiar social outlet. Lifestyle locations dominate Yes, lifestyle has undeniably become the fundamental force in today's residential real estate market. Culturally, we have become a nation that enjoys strolling to the local corner eatery to catch up with friends or just enjoy some time out with a latte. But it's not only suburbs close to the beach and bay that command premium. Proximity to schools with a good reputation is a must for many family buyers, with some purchasers prepared to pay extra to be within a particular school catchment zone so their children can either walk, bus or "train it" to school. In fact, in my experience, parents are more willing to spend half an hour or more driving to work if it means their children can safely walk to an esteemed, local school. Australian cities have now been ranked by Walkscore As our population grows and our major cities increase in population by an estimated 10% over the next five years, the walkability of an area will be become an even more important consideration for property investors seeking locations that will outperform into the future. Well, now you can find out how "walkable" your suburb is. Walkscore.com, which measures the number of typical consumer destinations within walking distance of a dwelling, with scores ranging from 0 (car dependant) to 100 (most walkable) has recently ranked more than 100 Australian cities and 3000 suburbs. And the good news is that walkable neighbourhoods were recently recognised for their health and economic benefits afforded to residents by the University of Melbourne, where a 10 year study found good access to local infrastructure encouraged more people to ditch the drive and adopt "health-enhancing behaviours". For property punters, the cultural transition that Australians are undergoing is important to note. It signals an end to the suburban McMansion "fad" and demonstrates just how crucial demographic waves of change can be to planning and executing a successful, long-term property portfoli

Have you ever considered a joint property venture to help you get into property or get yourself to the next level? Many people are having difficulty getting into property or getting to the next level, and some people are considering joint property ventures as a way to get involved in property development. In today's episode, I'll discuss the pros and cons of getting into a joint property venture. Later in the episode, we'll talk to Stuart Wemyss about how the Reserve Bank sets interest rates. If you've ever wondered what the RBA does every month and how it affects banks, this will interest you. Finally, we'll hear Ken Raiss answer a question about depreciation. The information he shares should be of interest to you if you're a property investor. What to consider before you get into a joint property venture: Money can change relationships. Don't proceed with a joint venture if you're not sure the relationship with a friend or family member can withstand the pressures of investing together. Put everything in writing before you get started. That includes your goals, each person's responsibilities, who is contributing what, and how profits will be divided. Make sure that not only are you financially capable of taking on the investment, but the people you're investing with are financially capable as well. Consider how the venture will affect your credit standing. You'll get a third of the income, but you'll be considered liable for the whole mortgage. Make sure that you've documented your exit strategy as well as your entry strategy. Protect yourself with life insurance and income protection insurance, in case of unforeseen complications. Property ventures aren't necessarily a bad idea, and you shouldn't rule them out. But look at them very carefully before proceeding. Some of the things I discuss with Stuart Wemyss about how the RBA sets interest rates: The Reserve Bank's role in managing inflation and the exchange rate Why the Reserve Bank is unlikely to raise interest rates until inflation picks up How interest rates have changed over the years How the reserve bank decides what interest rate it's going to charge The importance of interest rates when it comes to choosing a lender Can you still claim depreciation on the purchase of an established property? There are two types of depreciation: depreciation on the building, and depreciation on the fixtures and fittings On an established property, you can claim depreciation on the building, but not the fittings and fixtures If you do a renovation, you can claim the depreciation on the new cost that you've spent upgrading the property If you buy a new property, you can claim both types of depreciation If you have multiple earners on the title, you need a different type of depreciation schedule Links and Resources: Michael Yardney Metropole Michael Yardney Books Rich Habits Poor Habits Stuart Weymss Ken Raiss Some of our favourite quotes from the show: "Like it or not, when money comes into the equation, relationships sometimes change." Michael Yardney "Rainy days can happen, so you may as well own an umbrella." Michael Yardney "In the 80s and 90s, I managed to take part in some very, very significant property developments by choosing the right joint venture partners, and now I'm in the position to help my children get into property by partnering with them." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

If you want to become a better investor, this week's show is for you. Today I'm going to chat with you about two important topics that will be relevant whether you're a beginning investor or a seasoned pro. Firstly, I'll talk about the 7 habits of highly effective investors. I'll look at the 7 habits of highly effective people and explain how these approaches to success also relate to investing. Then, I'll go through an exercise of deciding what I would teach my 21-year-old self if I could go back in time with the knowledge I have now. You may want to try the same exercises. Chances are, the lessons you would teach are some of the same lessons you should focus on today. 7 Habits of Highly Effective Investors Be proactive. You can choose to take control or be controlled. You're where you are because of all the things you've chosen to do and all the things you've chosen not to do. Begin with the end in mind. By focusing on your desired outcome, you'll lead yourself toward those goals. Set long-term goals, make a written plan, and devise a strategy to get there. Put first things first. You need to learn how to prioritize actions. Take a step-by-step approach. Keep the big picture in mind, and don't be afraid to say no when an opportunity doesn't fit in with your plan. Think win-win. There is more to be gained from cooperation than competition. Learn how to be happy with what you have while you pursue what you want. First seek to understand, then be understood. Really listen when someone is speaking, instead of just formulating a reply. Avoid confirmation bias. Be skeptical of your preconceptions. Synergize. Creative cooperation allows us to uncover new solutions. Surround yourself with consultants and mentors that will lift you up, not drag you down. Sharpen the saw. Your greatest asset is yourself, so you need to look after your mind, body, and spirit, and maintain a healthy balance. Don't be afraid to spend or invest money on your education and learn from your victories and mistakes and those of others. 21 Lessons I Would Teach My 21-Year-Old-Self Learn from your mistakes. Mistakes are inevitable. Learn from them and keep going. Love change. Change happens for a reason, so learn to be ok with it. Say "no" more often. You don't have to say yes to everything someone asks you to do. Focus on becoming good at one thing. Successful people specialize. Tell people how you feel. Never underestimate the power of a good compliment. Don't be afraid to be honest, and to apologize when necessary. Don't worry so much. Most of what we worry about never happens. Be honest with yourself and with others. Honesty gives you peace of mind, and that's priceless. Remain curious and keep learning. Ask lots of questions. Invest in yourself by investing in your education. Continued personal development is the key to success. Get good mentors early in life. Don't be shy about doing this. We all need to learn from somebody. Why not learn from the best? Be grateful. No matter how much money you have, you won't be wealthy unless you're grateful and enjoy life. Love yourself. You can't be fulfilled until you're happy in your own skin. Don't compare your Chapter 1 with someone else's Chapter 20. Everyone has their own problems. Concentrate on being a better person today than you were yesterday. Help others become successful. When you find yourself in a position to help others, bring them up to where you are. Enjoy the journey. If you don't enjoy the journey, you won't enjoy the destination. Stop making excuses. Don't be a victim or blame others. Take risks. Don't be reckless, but don't let your fears stop you from taking calculated risks. Choose your friends wisely. The people you surround yourself with will rub off on you. You're more likely to be successful if your friends are like-minded and motivated. No one owes you anything. If you want something, work for it. Think long-term. You need to think 10, 20 ,30 years in advance. Great things take time. The 80-20 rule. The people who work the hardest aren't necessarily the most successful. You can work little and be smart about it and get what you want. Make investing a priority. Invest time in learning how money works, how it's made, and how it grows. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Some of our favourite quotes from the show: "You've got to become the pilot of your life, not the passenger." --Michael Yardney "Learn how to be happy with what you have while you pursue what you want." --Michael Yardney "I've made more by saying "no" to things than by saying yes to all those perceived investment and business opportunities that have been put in front of me." --Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Have you ever wanted to sit me down in a corner and ask me all of your questions about property? That's what Liz and Marc from Finder.com.au did. Earlier this year, they asked me all their questions about property. The interview had so much good information in it that I asked permission for you to hear it on my show Listen to the episode to hear about the major forces driving our property market, the effects of APRA, what I see ahead for interest rates, how rising interest rates might actually make it easier for new investors to enter the property market, and much more. They spoke with me about a variety of property related topics, including: The major driving forces behind the property markets in 2018 APRA's effect on the property market in the past and going forward Where I see interest rates heading How rising interest rates make it easier for new investors to enter the property market Where I see price growth in 2018 (Hint: It's not just Sydney or Melbourne) How the infrastructure boom will drive price increases My advice for dealing with property investment advertisements Lessons about property spruikers My view on Australian population growth My view on Sydney, Melbourne, Brisbane, Hobart, Canberra, Adelaide, Perth and Darwin Why I think you shouldn't invest in Hobart, and what lessons potential Hobart investors can learn from Darwin Why I think many investors will sit on the sidelines this year Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits The Finder.com.au Money Podcast Some of our favourite quotes from the show: "Looking forward, I see a number of outside influences that are going to make a difference to what happens to our markets." – Michael Yardney "I think meteorologists and weather forecasters get a better result of the weather than property forecasters do because the property market has multiple drivers, and it's not just the fundamentals." – Michael Yardney "I guess my message is: don't compare your chapter one to somebody else's chapter forty. Your parents' first house was not the same house they have now." – Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

When the world of finance changes, property investors must be prepared to change with it. In today's episode, I'll be chatting with property analyst Pete Wargent about recent changes in finance and how they have affected his investment strategies. Changes in the market and new regulations affect the property cycle, and investors must adjust their strategies at different phases in the cycle. These changes also affect different segments of the market differently meaning you may want to avoid certain segments and focus on others. The changes in bank's lending policies may also affect your endgame - of your investment strategy of how you will live off your property portfolio. Listen to our conversation and learn more about how the markets are changing and how you can tweak your investment strategies to keep up with the phases of the investment cycle. Some of the things we discuss: How the APRA (The Australian Prudential Regulation Authority) introduced macro prudential controls have caused banks to change their lending criteria The concerns about high levels of debt and speculation that prompted regulators to make changes. How new regulations are affecting serviceability, including stress-testing mortgage applications and slower levels of investment lending below certain imposed caps How lending controls have changed since the Global Financial Crisis What APRA's restrictions on how quickly banks can grow means for the housing markets Which areas of the housing market are most affected by the recent changes, and which are still solid investment opportunities How management of personal finances affects the way that regulations will impact borrowers Why rentvesting is sometimes a sensible option for people looking to begin growing their investment portfolio Why now might be a good time to sell an underperforming property How having a large enough pool of equity enables you to have more choices Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Pete Wargent Daily Blog Pete Wargent on Property Update Wealth Retreat Some of our favourite quotes from the show: "I love the old saying that a rising tide lifts all ships and that's what happened in a lot of our property markets, especially the booming markets of Melbourne and Sydney, and then once the tide goes out, you can see who's swimming naked." Michael Yardney "Human nature is to think that when things are going great they will always continue to do so, but of course there comes a point when valuations are too stretched and that's arguably what we'll see over the next year or two." Pete Wargent "I'd rather you own one or two good investment grade properties, rather than a bunch of secondary properties, because the stability of the good properties is going to give you the peace of mind and the ability to sleep at night rather than the volatility of the less sound residential real estate assets." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

The 8 Golden Rules of Successful Investing - part 2 There are only 8 rules to successful investing according to Stuart Wemyss, my guest on this week's show. According to Stuart, investing is as easy as winning a game of monopoly when you know the rules. Last week I talked to Stuart about the first four rules of investing. This week we're going to continue the discussion by explaining the remaining rules. If you haven't yet, make sure to listen to last week's episode, The 8 Golden Rules of Successful Investing - part 1. The Golden Rules That We Discussed Last Week: Rule #1 Play the long game Rule #2 Know how much income you need and by when. Rule #3 Spend less than you earn and invest the difference regularly Rule #4 Grow your asset base first and then tilt towards income The Golden Rules That We Discuss This Week: Golden Rule #5 Set your asset allocation to reduce risk and maximise returns Asset allocation is the decision where to invest: property, shares, bonds, commercial property, cash, etc. Asset allocation is an investor's most important decision as you cannot control markets and returns – but can control where you invest. My advice is to adopt a strategic long-term asset allocation and then make small tactical tilts to accommodate asset class (under/over) valuations. Property is lumpy so: (1) look at ex-property allocation on a year by year basis and (2) project/aim to have a more balanced asset allocation by the time you reach retirement Need to reduce volatility – i.e. don't lose money. If you lose 50%, you need to make 100% back. Volatility: Shares = 20%, bonds 7-10%, property 10%. Invest in negatively correlated assets e.g. shares and bonds. Property has very little correlation with shares and is negatively correlated to bonds. Your allocation depends on your starting point, risk profile, goals, time until retirement, etc. – I back-test various allocations in the book. You need professional and independent asset allocation advice. Golden Rule #6 Invest in the share market using low-cost passive investments Two types of management styles: active and passive. Depending on the study, between 70 and 96% of active fund managers fail to beat the market over the medium to long run. The longer the period studies, the worse the results. So, picking an active fund manager that beats the market is like finding a needle in haystack, just invest in the haystack (index). Other benefits of a passive approach include: lower fees, less tax (turnover), more diversification. Indexing works because Fees are low It relies on a rules-based approach which is repeatable and testable; and You don't have to put your faith in one index methodology. Instead, use various, robust, and proven index approaches (e.g. traditional market cap, fundamental indexing, dimensional): You can access low-cost index funds through Exchange Traded Funds and managed funds. Super: some industry funds offer indexing, BUT it is only traditional indexing – I believe you must diversify. Optimising returns and fees typically will have a greater financial impact than extra contributions – so optimise the way your super is invested and the fee you pay first. I have included example portfolios in the book i.e. which fund to invest in. Golden Rule #7 Only invest in 'investment-grade' property Definition of investment-grade property: doubles in value every 7-12 years Three factors that all investment-grade property must have: (1) Strong land value component (2) scarcity in terms of land supply and property type (3) proven performance. That is why off-the-plan property doesn't make a good investment – it fails all three criteria. I believe that you must pay for asset selection advice from a reputable buyers' agent. Quality trumps quantity – that is, in my experience, investors rarely need more than 3 quality assets to be able to fund retirement Constructing a property portfolio: diversify geographically, diversify across various price points, diversify your tenant profile, investing in a different market to where your home is located. You must seek professional loan structuring advice to ensure your tax, cash flow and risk are optimised. Must have a debt exit strategy i.e. how are you going to reduced debt to an adequate level by the time you reach retirement? Some of these are covered in the book. Golden Rule #8 Protect your investments from expected and unexpected risks Investing is about getting the highest return for the lowest risk. To achieve this you must mitigate all risks. You must insure your most valuable asset i.e. your ability to earn an income. Insurance is simply an investment expense. If you are going to borrow to invest, you must insurer yourself. Its early black and white i.e. all or no cover – more correctly it's about finding the right level of cover. I talk about the how to get the best (cost-effective) cover in the book. Life and TPD insurance should be held inside super (not in personal names). Interest rates – use fixed loans and s

Investing is easy when you know the rules, and according to today's guest, there are only eight rules to investing. If you're interested in becoming a successful investor today's show is for you as we discuss the eight rules of investing with Stuart Wemyss. Stuart is a financial planner, an accountant, a mortgage broker, and a successful property investor. He's also an author, and he's with us today to talk about his book Investopoly. Interview with Stuart Wemyss Why did you write Investopoly? Investing is easy when you know the rules – just like winning the game of Monopoly. I wanted to shares these rule – a simple formula to help people build wealth and not get fooled into investing in dud investments. The rules aren't my opinion. They are simple, irrefutable laws, rooted in math and logic. They are evidenced-based and can be observed working in markets for decades. Applying those laws makes it very easy to (1) avoid making mistakes (2) work out what to do next and (3) be a successful investor. Golden Rule #1 Play the long game Long term financial decisions promote exercising delayed gratification – patient investors are rewarded, impatient ones are not Market are not efficient in the short run – so thinking short term creates anxiety and doesn't help you invest wisely Over the past 30+ years returns are relatively similar: Aussie market = 9.25%, property market = 12%, US market = 10.5% - so its not a question of which "asset class" provides the best returns. More about which asset class suits you and your stage of life. Best question you can ask yourself: "what action can I take today that will result in me being a lot financially stronger in 10, 15 and 20 years?" Completely ignore short term impacts. Golden Rule #2 Know how much income you need and by when Stephen Covey's advice: "begin with the end in mind". You don't need a map until you have a destination. You need to set two important goals: how much income you need in retirement and by when? Look at what you are spending today – that's probably a good indication of what you will need You have to expect to live a lot longer due to medical advances. Will you live until 90? 100? Therefore, you don't want to have to eat into capital in retirement = get asset mix right. Retirement increases the risk of clinical depreciation by 40% - due to the absence of contribution and growth. So, maybe the answer is to keep working? Or find something to do in retirement that "contributes" to others and things that promote personal "growth". Golden Rule #3 Spend less than you earn and invest the difference regularly Commit to an annual surplus that you will contribute towards building your financial future (this could be home loan repayments, super contributions, property, shares, etc.), then spend what's left over. It is your ability to consistently allocate a surplus cash flow (year after year) that will have a massive impact on whether you will be a successful investor. If you are not a "saver" then redefine "saving" as "future spending" Merely just measuring cash outflow is typically enough to bring it back into line: I suggest allocating all outflows into seven categories: financial commitments, utilities, health and education, shopping and transport, entertainment, cash and other. If you don't have a surplus income at the moment: Reduce the regularity of any big discretionary items e.g. go out to dinner once every 8 weeks Commit to saving future income increases (pay rises, bonuses, etc.) Make sacrifices like holidaying every 2-3 years instead of annually Get help from an accountant to help you measure and manage cash flow. Golden Rule #4 Grow your asset base first and then tilt towards income When we build a house, we do it in a certain order because that yields the most efficient and robust build. We should invest in a certain order too – for similar reasons. More income = more tax. Whereas with growth you don't pay tax until you sell the investment. This is the power of compounding capital growth. Compare two investments that generate a gross return of 10%: 4.5% income + 5.5% growth versus 2% income + 8% growth = 21% higher return in 20 years' time after all tax is paid! That is the power of investing for growth first and then tilting towards income. Select assets that provide most of their total return in growth and relatively low proportion of income How will capital growth help fund retirement? Sell assets, with enough time income will be substantial, invest in other income-style assets, sell one property and reinvest in bonds, etc. You need to develop a financial model in order to work out how much to invest, when and in which asset classes. Links and Resources: Michael Yardney Metropole Stuarts's 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. Some of our favourite quotes from the show: "I've found that it's not just understanding the rules, you've

What are Australian properties going to be worth in a decade? What's going to make a good investment property over the next 10 years? What are the major trends that are going to affect our property market? It's interesting to look at the difference between predictions that were made 10 years ago and what really happened between then and now. In today's show, I'll share a discussion I had with Ahmad Imam about the major property trends and influences to expect over the next 10 years. Then I'll share my predictions for what will make a top performing investment over 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 resources 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 year to September 2017 the annual growth in Australia's estimated resident population picked up to +395,600. This is the largest annual increase since 2013 in absolute terms, if not in percentage terms. More than half of this growth is due to immigration – Australia's permanent migrant intake is capped at around 200,000 per annum, but the overall pace of net overseas migration was faster than this, partly accounted for by international students. The estimated rate of population increase through net overseas migration is a bit faster than might be implied by the issuance of permanent residency visas, with the growth international students accounting for some of the difference. 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 ageing 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 WEALTH RETREAT 2018 We also discuss Wealth Retreat 2018 which be held on the Gold Coast on June 9th to 13th. 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 com.au image how you will be different after 5 days immersed with a room full of successful movers and shakers. My predictions for the next decade: We are in for a period of slower capital growth – can't count on the market doing the heavy lifting Strong population growth will occur in our capital cities compared to regional Australia We have 2 super star cities, but strong capital growth in big 4 capital cities There will be disproportionate wages growth in some locations because of the jobs that will be created in the service industries Some commentators have got it wrong saying buy in regional areas as we're going to be the food bowl of Asia – I hope we will – but not high wages growth and tourism leads to part time / casual jobs Don't fight the trends – invest in the 3 big capital cities Learn from the big overseas property markets More people will trade space for place – and backyards for balconies and courtyards Location will do 80% of the heavy lifting but you still need the right property To ensure they buy an "investment grade" property that outperforms the market, investors should consider using my 6-Stranded Strategic Approach, which means that they would only buy a property: That appeals to owner occupiers. Not that they should plan to sell their property, but because owner occupiers will buy similar properties pushing up local real estate values. This will be particularly important in the future as the percentage of investors in the market is likely to diminish. Below intrinsic value – that's why I would avoid new and of

Are you lucky? How important is luck in your success in property investment, in business or as an entrepreneur? We often think success comes as a reward to the hardest working, most focused, and most talented individuals. But is that really the case? Believe it or not, luck may play a bigger role in success than you think. Today I'll be talking to Louise Bedford about what science has to say about the role that luck plays in success in business and property investment. Some of the things we discuss: Whether or not people create their own opportunities Why people may have difficulty seeing opportunities Some of the findings put together by Scott Barry Kaufman and published in Scientific American A study by Italian physicists Alessandro Pluchino and Andrea Raspisarda and Italian economist Alessio Biondo that attempts to quantify the role of luck and talent in successful careers How people can learn to see opportunities when they arise The most important keys to achieving success Long-term goals Studying and learning Building a team of consultants and mentors Optimism Decisiveness Specialise rather than diversify Admit to mistakes and correct them The greatest driving force for people who have achieves success What people can do when they fear change but are eager for the opportunities that change can bring The top three things that Michael would want to say to young people How the people you associate with can affect your ability to achieve success Michael Yardney's Wealth Retreat Links and Resources: Michael Yardney Metropole Wealth Retreat The Trading Game Some of our favourite quotes from the show: "Luck finds positive people – people who seek opportunities. I've found luck favours the persistent." Michael Yardney "You must invest your time and energy in yourself – in your personal development perfecting your skills and knowledge." Michael Yardney "Never quit on your dream. Luck does not visit quitters." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

What's happening in the property markets around Australia? In today's episode, I'll speak with four experts to give you an update on what's happening state by state. You'll hear how our property markets peaked in September last year, and while the boom is over, it seems we're in for a benign correction. Some areas are still growing, while others are slowing down. In most capital cities, I believe that we'll end up with values higher at the end of the year than they were in the beginning. Here's some of the things we discuss: Melbourne Property Market with Kate Forbes: The Melbourne property market is consistently performing well. It may not be the best capital city performance at the moment, but it has been one of the best performers on a consistent basis over the last decade. Capital growth will continue in the Melbourne market, but not to the same levels that it has been. Melbourne is experiencing a population boom because of its economic activity Melbourne will continue to see rental hikes over the next couple of years Investors are less able to get into the market in Melbourne due to new APRA regulations Advice for investors looking to get into the Melbourne market Sydney Property Market with Ahmed Imam: Why the Sydney market is fragmented Dwellings aren't being built fast enough to keep up with population growth and migration in Sydney How many houses are being built each week in Sydney – eyet there is still a deficit Infrastructure projects than are occurring in Sydney How Sydney property ownership will look different going forward Brisbane Property Market with Brett Warren: What was holding Brisbane's property market back, and why it's doing better in 2018 What's on the horizon for Brisbane's property market Interest in Brisbane from overseas Why homebuyers are getting back into the Brisbane market, and how that affects property values Rental prices are continuing to grow in Brisbane What type of Brisbane properties are best for investing in Property performance on the Sunshine Coast and Gold Coast Economic Factors Affecting Property Markets with Ken Raiss: External factors that are affecting Australia's economy How unemployment, wages growth, and infrastructure expenditures are affecting Australia's economy How the infrastructure boom is going to affect Australia's economy in the coming years Whether the average Australian household is in good shape to take on more property debt Despite the slow wage growth, there are no major speed bumps ahead in the Australian economy Other Capital Cities in Australia: Adelaide: Adelaide is very fragmented and has few growth drivers. Overall, home value growth is low Perth: Perth's market peaked in June 2014 and hasn't reached bottom yet, although it's getting close. It's too early for a counter-cycle of investment Hobart: Hobart is Australia's most affordable capital city and has delivered the highest capital growth over the last year. However, the market is very small and it has few long-term growth drivers Darwin: Darwin is still suffering from the end of the mining boom. Housing prices will likely continue to fall through much of this year. Canberra: Canberra has a strong economy and above-average population growth. However, Canberra has very high rates of land tax that are probably going to get higher. This disincentivizes investors. Regional Markets: Some regional areas perform better than some capital cities, but overall the trend is toward capital cities being a better investment. Links and Resources: Michael Yardney Metropole Kate Forbes Ahmad Imam Brett Warren Ken Raiss Some of our favourite quotes from the show: "You shouldn't change your long-term strategy because of short-term ups and downs in supply and demand or finance." Michael Yardney "I see the next major spending spree is really the infrastructure boom which is going to drive us through the next decade." Michael Yardney "This year's hot spot very quickly becomes next year's not-spot." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Who wouldn't like to buy their parents' house at the price their parents paid years ago? In today's show we're going to look at the past as I have a chat with Pete Wargent to see what clues it can give us about the future of property. We discuss what would happen if Crocodile Dundee would have to assess the changes that happened to our property markets in Australia since 1986 – maybe he'd gone on a walk about State Side for a few decades. What Mick Dundee would think of present-day Australia could give you a very different perspective on current conditions. Having the benefit of hindsight can give you insight into the future. While you may not be able to go back and change past decisions, maybe you could use this information to predict how things are going to unfold going forward. Some of the things we discuss: How and why the population in some of Australia's cities, like Sydney and Melbourne, have dramatically increased in the last 30 years The changes in Australia's workforce over the last few decades, including that how the female workforce has increased to the highest levels yet How the general perception of debt and interest rates have changed along with the demographics in Australia How entertainment has changed in Australia since the 1980s, and how increased screen time has increased connectivity between people How crime rates have changed over time, particularly in the cities. The way the increasing population in our cities affect the quality of life Why Australia's economy is improving and will continue to improve in the near future How immigration has affected the median age in Australia What Australia might look like 30 years from now Links and Resources: Michael Yardney Metropole Wealth Retreat Pete Wargent Daily Blog Pete Wargent on Property Update Some of our favourite quotes from the show: "You've got take into account the general economic circumstances, what's happening to the economy, inflation, the cost of goods, when you understand what interest rates are and whether you should take on debt. Good debt has never been an issue, not way back then either." Michael Yardney "Many houses have more television screens than they have people, and then they wonder why the money doesn't last the month out and why their budgets don't meet." Michael Yardney "One of the things I've noticed is that we're now the second-wealthiest country in the world on a per-capita basis, in terms of household wealth." Pete Wargent Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Why are the best business owners and entrepreneurs crushing it, while most are struggling? Just in case you hadn't noticed, it's tough out there at the moment for business owners, entrepreneurs and many people in professional practices. Having said that, while many are struggling, some business owners are crushing it - so what can we learn from these successful people? A little while ago I was having a chat with Mark Creedon, my personal business coach and a director of Metropole Business Advisory about the reason why many business owners & entrepreneurs don't succeed. We were discussing that in fact the reason why certain businesses were crushing it are down to 3 fairly simple behaviours (and it has nothing to do with having unlimited marketing budgets or having hundreds of people at your 'beck and call'). In fact they were so simple that I couldn't resist myself, so I pulled out my iPhone and recorded the conversation which I wanted to share with you today

Are you having money problems? Are you where you hoped to be financially at this stage of your life? Well…if you want to be in a better financial situation, then this week's show is for you because I'm going to debunk 15 Myths that could be killing your wealth potential. You see…money doesn't discriminate; it doesn't care who you are or where you come from. No matter what you did yesterday, today begins anew and you have the same rights and opportunities as everyone else to become wealthy. Yet the sad reality is that the majority of Australians will never achieve financial freedom. So, join me in today's show as I explore the common myths about money that hold many people back from achieving their financial goals. Myth # 1: It takes money to make money Despite what some people believe, it doesn't really take a lot of money to make money. Many Australians have untapped equity in their homes that they can use as seed capital for investments, while others will have to learn the discipline of saving to get some start up capital. Then all they need to do is invest in high growth investments such as residential real estate and use the magic of compounding, leverage and time to grow their asset base. Myth # 2: I don't make enough money. Almost everyone makes enough money to become an investor. The truth is most people don't have an income problem, they have a spending problem. Look at your current wage and ask yourself; how much am I likely to earn over my lifetime? For most of us, the answer will probably be over a couple of million dollars. The problem is most of us spend as much as we earn. You've got to start living within your means, paying yourself first, saving a deposit for a property and investing in order to break your current pattern. Myth # 3: My job and superannuation will take care of my financial future. If you accept my definition of financial freedom as having enough passive income to finance the lifestyle you desire, without having to work; you will never achieve this through your job or superannuation. Instead you will need to take control of your financial future by investing. You just can't save your way to wealth Myth # 4: I'm not smart enough. In our country everybody has the ability and opportunity to become rich. Successful people come from different backgrounds and while some have university degrees, others never finished high school. To reassure you that an education doesn't equal a financial fortune, here are a few multi millionaires who never graduated from college: Bill Gates (Microsoft), Michael Dell (Dell Computers) and Steve Jobs (Apple). The truth is you can do whatever you want; not being smart enough is just another excuse. Myth # 5: Investing is complicated. Developing your own financial freedom is only as complicated as you make it. Sure gaining the knowledge to become financially independent is challenging, but many new things seem more difficult than they are until you develop an understanding of them. Investing is no different. It's easier than ever before to learn the fundamentals of wealth creation, with limitless tools available in today's high tech, info-laden world. The key is to learn from the right people – those who've already achieved what you want to achieve. Myth # 6: Investing is risky. The dictionary definition of "invest" is: "To commit (money or capital) in order to gain a financial return." The word "risk" doesn't even get a look in. However, many people speculate when they think they are investing – they buy a property in a secondary location or off the plan "hoping" it will increase in value. Speculation is risky. On the other hand, finding a property with an element of scarcity so it will always be in strong demand, in an area that has always outperformed the averages and buying it below its intrinsic value, is a proven investment strategy that minimises your risk. Myth # 7: You have to know how to time the investment markets. It's often said that timing is everything when investing, but that's not really the case. Sure timing matters – you don't want to buy property at the peak of the boom, but successful investors find that timing isn't really that important. Have you noticed how some investors do well in good times and do just as well in bad times, while others do poorly in good times and even worse in bad times? The truth is, successful investors know how to create wealth at any point in the property cycle while unsuccessful investors manage to lose money at the same stages of the cycle. This suggests to me that it's not our external world that determines whether we make money; it's something inside us – our mindset. Myth # 8: The rich are lucky. The truth is that success in wealth creation is no more about luck than is success in anything else in life. To become wealthy you have to be in control of your finances and not count on good fortune. When you have a proven investment system or strategy, luck becomes unnecessary. I've played Monopoly a couple

Why is Michael Yardney still working? | Learn the Money Habits of the Rich Making money and creating wealth to achieve financial freedom is usually the reason why people invest in property. This means that property is really just a vehicle for attaining money and that's one of the reasons today's show is about money. I'm going to segment this show into three parts. If you're like many other listeners of my podcast you may wonder why I'm still working. Well today I break that down for you and share some insights into what makes my mind tick. Then I share Jim Rohn's wisdom on changing your life, and Tom Corley is here to talk about the money habits of the rich. Why Is Michael Yardney Still Working? Yes I am truly financially free, owning a substantial property portfolio across a number of sectors. I've built a Cash Machine that gives Pam and me real choices in life. I don't have to work, but I really enjoy what I do. Enthusiasm is the reason successful people keep doing what they do. They have developed an intense enthusiasm for what they have been doing which results in being successful. I still enjoy putting deals together, bidding at auctions, the psychology of negotiating, teaching and putting training programs together, and passing my knowledge forward. And I am still unashamedly enthusiastic about making money. I enjoy passing it on to future generations and contributing significantly to charity. I'm very grateful for what I've got, and I believe that it is my obligation to repay the world. That is why I spend so much time writing, educating, and putting together this podcast. These activities are the least "profitable", but the most rewarding things I do. You Can't Change a Season, But You Can Change Yourself: My mentor Jim Rohn believed in the power of choice and attitude. It's up to you to decide and determine your life through your attitude and your choices. Life is full of seasons, and you need to learn how to handle the winters. You must learn how to handle difficulties, because they come after opportunities. Get stronger, wiser, and better. Learn the Money Habits of the Rich with Tom Corley: Habits are repetitive behaviours, thoughts, beliefs, or emotions. 40% of our daily activities are habits. We are where we are because of our habits. Habits are a reflection of our lives. If you have a great life, you have more good habits than bad habits. Such as… Live below our means. Spend less than you make and save and invest the difference. Don't gamble. Gambling is a tax on poor people. Reading is about learning, and learning is about growth. We need to grow into the person we need to be in order to be successful. Knowledge opens our eyes to opportunity. History exposes mistakes of the past. Rich people don't waste time watching TV and surfing the Internet. Links and resources: Tom Corley Rich Habits Poor Habits Wealth Retreat Jim Rohn Metropole Our favourite show quotes: "I spend all day talking about property while drinking coffee and dealing with nice people. Why wouldn't I still be working?" Michael Yardney "If you are doing something that you don't have an intense enthusiasm for the likelihood of success is slim indeed." Michael Yardney "Everybody has the capacity for intense enthusiasm, you've just got to find the right outlet for it." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

If you are looking at buying a new home or investment this year, odds are you'll have to consider buying a property at auction. So today we discuss the process of what to do before, during and after a property auction, including some great tips of what to do if the property passes in. And even if you're not planning to buy at auction in the near future, listen in as I discuss the psychology of negotiating with agents before and after the auction with Bryce Yardney. A property buyer's guide to auction success: If they have a good property for sale with the likelihood with strong buyer competition, most vendors will put their property to auction. So don't avoid buying at auction - there are a lot of good properties for sale by auction and if you know what you're doing it's a relatively transparent process. Do your due diligence Get finance pre approval Get your purchasing entity organized. Get a solicitor to check the contract Have any inspections or reports organised. Prior to auction: Attend as many auctions as you can and understand how they work. If possible check out the auctioneer who will be conducting the auction you're planning to buy at. Do your research and understand your market. Know what the property is worth. Let the agent know that you are interested before the auction, but play your cards close to your chest. Get a copy of the contract and vendor statement checked by a solicitor. Why not get an experienced buyers' agent on your team to bid for you? Bring a cheque book or bank cheque to the auction or organize an electronic payment. Determine the price you are prepared to pay prior to the auction. Pick three prices. A price you love, a fair price, and a walk away price. Never stop bidding on a round number - give yourself 3 or 4 bids above a round number. Arrive early at least a half an hour. Survey the landscape, see who is there, and find out who your competition is. Dress nice and portray confidence. Stand front and center and let people know that you are there to bid. Start with a strong bid and make your last bid as strong as your first bid. Be prepared to walk away if the price gets too high. If the auction stalls, put yourself into position to negotiate with the vendor when the property passes in by being the highest bidder. Don't follow the agent inside like they ask you to. Show a position of strength on your own turf. Ask what the vendor's reserve price is? Sound surprised. Then ask what the lowest price they are willing to sell for. This is just another starting point for negotiation. Don't be afraid to drag out the negotiations if there is no other competition for the property. You are not obliged to meet the vendor halfway. This is where you would benefit from having a professional property negotiator on your side. Links and resources: Bryce Yardney Michael Yardney Metropole National Property & Economic Market Update Promo Code: Podcast Dr. Andrew Wilson Ken Raiss Podcast Episode 14: Do Real Estate Agents Tell White Lies to Make a Sale? | This Is the Best Predictors of Future Success Podcast Episode 13: Learn to Negotiate Like a Pro from a Negotiating Pro Property Update App Some of our favourite show quotes: "If you come prepared with a plan buying at auction can be a very exciting experience." Michael Yardney "A lot of buyers see auctions as highly stressful events and they are worried that they may pay more." Bryce Yardney "I like watching the auctioneer and the person selling the property. You will be ahead of the game understanding the techniques and psychology behind buying and selling a property." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

What's the right investment strategy now that we've moved to the next stage of the property cycle? When it comes to property investing, you will often hear two conflicting philosophies. Some say you should invest for capital growth, and others say you should invest for positive cash flow. Now that we are in a period where capital growth is going to be lower, more investors are wondering if they should change their investment strategy and look for cash flow positive properties. This is exactly what we discuss in today's show. The first half of the show we talk about finding the right investment strategy, and in the second half we talk about finding the right property. So whether you're a beginning investor or a seasoned pro, there's something for you. What's the Right Property Investment Strategy for This New Phase of the Cycle: More beginning investors tend to invest in cash flow positive properties. On the other hand, successful investors - those who've built a substantial asset base grow their portfolio through leveraging the capital growth of their investments. While cash flow positive properties allow you to get short term income, they will never allow you to accumulate enough equity and assets to become financially free. The few extra dollars a week in cash flow that you might receive isn't going to make a difference in your lifestyle, but the lack of capital growth is going to hamper your ability to get the deposit for your next property. And the lack of rental growth is going to hamper your ability to service more debts. When interest rates rise, and the will sooner rather than later, a cash flow positive property can become cash flow negative – an you lose out because you don't have the cash flow and you don't have the capital growth. Investors should focus on building their asset base. Asset growth first and then cash flow. You should only buy properties with a high land to asset ratio. The first phase is the accumulation phase. This is where you build your net worth and asset base. You can speed things up by manufacturing capital growth through renovations. The next phase is the transition phase. This is where you lower your loan-to-value ratio after you have built an asset base. Then eventually you can. Live off the cash machine of your investment property portfolio You have to get your investment phases in the right order. When you retire the majority of your assets will be the capital growth of your property. Setup the correct loan structures before you buy to cover shortfalls for two or three years. You need to invest in high quality "investment grade" properties. The Big Difference Between Winners and Losers: Most successful investors realize that success is a mindset. People fall into two groups those who make excuses and those who don't. Winners stop themselves from making excuses, and they get the job done. The Right Property for This New Phase of the Cycle: We are now in for a period of lower growth for a number of years. There is no such thing as the perfect investment. Strong means you'll get capital appreciation at wealth producing rates of return. Stable means your asset won't fluctuate in price much. Look for an investment that is strong and stable steady cash flow. Liquidity either through selling or borrowing against the investment. Easy management. A hedge against inflation. An investment with good tax benefits. Look for properties with I'd take stability in my investments over liquidity. Put your money into a "how to" investment such as an established capital city property. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits National Property & Economic Market Update Promo Code: Podcast Some of our favourite show quotes: "I tend to see more successful investors, those who've built a substantial asset base, grow their portfolio through leveraging the capital growth of their investments." Michael Yardney "If you buy in a low capital growth area, your rents won't increase as much as properties bought in a high capital growth area." Michael Yardney "The few extra dollars a week in cash flow that you might receive isn't going to make a difference in your lifestyle, but the lack of capital growth is going to hamper your ability to get the deposit for your next property. The lack of rental growth is going to hamper your ability to service more debts." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

We all have dreams for the future, and many of those dreams require money to make them come true. So today we discuss some ways to get smart about money and help you get on track with your financial goals. Whether you are just starting out on your way to financial freedom, or you're stuck along the way and even if you're doing really well with your financial goals today's show is for you. Because I chat with Mark Creedon about setting financial goals and why many Australians don't achieve their goals and dreams and how you could. How to get on track to your future financial goals: Understand the importance of your money habits and recognise what you are doing right and what you can improve on financially. What is your plan and what is your purpose? Become smart about money. Ask why money is important to you and what having more money would mean to you. View your financial decisions through a lens with more flexibility. After finding your why, you'll need to set some goals and design a roadmap to get you there. Honestly evaluate your starting point – how are you doing financially? Carl Richard's 3 guess process. Relax a bit and get going. What are your goals? When do you want to do it? Put down a number. How much money or how many properties do you need to achieve this? Know where you are beginning. Do a balance sheet. Understand your assets and liabilities. A lot of people don't want to do a balance sheet because of emotional issues associated with their financial position. Most people have difficulty saving. On the other hand successful people can delay gratification. It's easy to say no to spending when you have a good reason to do so. Automate your savings eg10% before you even touch your money. Mistake #1 is not putting a plan together. Many people never decide to become rich. Other people procrastinate. The big mistake of immediate gratification and spending more than you earn. Don't get hung up on specifics and details. Give yourself permission to guess when you plan. Dump your emotional baggage around money and financial goals. Give yourself permission to move forward. It's a lesson not a bat to beat yourself on the head. Take responsibility and move on. Don't blame. Things change over time. You can either be right or be rich. You will face a number of roadblocks along the way. You may fail at certain things. Keep in mind it is a process and don't give up. Links and resources: National Property & Economic Market Update Promo Code: Podcast Marc Creedon Michael Yardney Metropole Rich Habits Poor Habits Dr. Andrew Wilson Ken Raiss Carl Richards Steven Covey Some of our favourite show quotes: "Goals aren't just dreams and wishes. You have to have an action plan behind them to convert your desire into a reality." Michael Yardney "The reason people haven't achieved their financial goals goes down to a deeper level of poor money habits." Michael Yardney "The money is a means to an end it is not the end itself. The first step is to plan." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

We are heading for the biggest crash in Australian history according to Harry Dent. Crypto currencies are about to fall, the stock markets will crash and home values in the big cities are about to halve. Is this really true? Today, I speak to Harry Dent to find out what he really thinks. I also speak to Dr. Andrew Wilson, and give you my thoughts on what's ahead. Harry Dent Says Australia's Property Bubble Will Burst: Here are some of the things Harry Dent said: What's ahead is a global crisis of the developed world -leading to a worse depression than the Great Depression of the 1930's. Bubbles cause an economic reset, but once that's over the markets can boom again. The economies of many countries in the world are slowing. Demographics will tell you when the different generations are going to spend money and when the slow down China has the worst bubble in the world. They are also Australia's biggest trading partner. Australia's real estate prices are the second highest (compared to income) in the world. We have created an artificial bubble because so much money has been injected into the system by governments. Bubbles build predictably, what's harder to predict is when the bubble is going to burst. Stock bubbles crash twice as fast as they build. When bubbles burst they burst by 70, 80, or 90%. Half of this comes in the first 2 ½ months. Bitcoin has been leading the stock market crash by about two months. Businesses are better off leasing rather than owning their premises, unless it's a totally strategic move to own the business. You should take some equity from your real estate and short the stock market to hedge against downturns. A typical real estate bubble is six years up and then six years down because people don't sell immediately when the bubble crashes. Values aren't going to crash as hard in Australia as in other countries. Things that will cause the bubble to burst include when US real estate starts to go down and bitcoin crashes. The high-end property markets are what seem to be cracking this time around. The most overpriced markets in the US are San Francisco and Los Angeles. Once the bubble bursts, Australia is best positioned of all the developed countries to recover because of its proximity toAsia Harry's new book has a whole new bubble model that looks at more than demographics. Michael's Take on What Is Going On: Investopedia defines it as:"A run-up in housing prices fuelled by demand, speculation and the belief that recent history is an infallible forecast of the future. Housing bubbles usually start with an increase in demand in the face of limited supply which takes a relatively long period of time to replenish and increase. Speculators enter the market, believing that profits can be made through short-term buying and selling. This further drives demand. At some point, demand decreases or stagnates at the same time supply increases, resulting in a sharp drop in prices - and the bubble bursts." For mine, bubbles are also accompanied by easing of lending criteria so that loans are easily obtained leading to rapid rises in housing credit, with many people who can't really afford to take on loans speculating and overcommitting themselves. Do we have some of the features of a bubble at the moment? Yes. Are we in a bubble? The answer is no. Property values are not about to collapse. Rising house prices on their own do not cause a bubble. The rise has to be followed with an increase in, speculation, borrowing and leveraging. This makes the market fragile and unstable. If anything, our banking system has become more stable than it has been for decades. With increased regulations by APRA and the RBA We're heading into this stage of the property cycle in the best shape that we've been in in a long time. Most Australian economist do not believe that the Australian market is headed for a crash. For the markets to crash, we need desperate sellers who are willing to give their property away for nothing, with no one there to buy them. We need one or more of these things to occur for a property crash to happen: A major depression, Massive unemployment, Exceedingly high interest rates, and Too many properties available. Dr Andrew Wilson Bursts Dent's Bubble: Here's what Andrew had to say: Housing prices are NOT going to drop 40% in value. We probably shouldn't even be responding to these outrageous predictions. It's very unlikely that we'll see any house prices lowering in Melbourne and Sydney this year. Demand remains strong in both of these markets. New household formation is about 1,500 per week in Sydney. This translates into the need for 75,000 new dwellings each year. Also 8% fewer homes were approved for building this year in Sydney. The key catalyst for the housing market are interest rates. Currently, they are going nowhere. We have the near lowest income growth that we've ever had. Without income growth and low interest rates there is no capacity to push prices higher. A challenge for policy

Today, we discuss the top 5 mistakes that property investors make, those that have nothing to do with buying the wrong property with Stuart Wemyss director of ProSolutions Private Clients. If you want to build wealth through investing in property, you'll learn something from the mistakes that others have made so that you don't make the same ones. I've talked and written a lot about how to choose the right property - an "investment grade property." So let's assume you have found the right property. There are still many things that you can get wrong. Today's episode should help you avoid some of those mistakes. The top 5 mistakes that property investors make: Not undertaking proactive tax planning before investing in property means you most likely pay a lot more tax than necessary (consider income tax, CGT and land tax). Not proactively managing your borrowing capacity and bank valuations which means you hit a "brick wall" and cannot continue to grow your investment portfolio. Wasting time investing in the wrong assets or adopting the wrong investment strategy that are fundamentally flawed and were never going to work. Trying to time the market. Waiting for "signs" or "indications" that it's safe to invest now (these will never appear). Worrying about inconsequential issues and not taking a long term view. Not starting with the end in mind i.e. not understanding how you invest today will impact on your ability to achieve your longer term lifestyle and financial goals. You must work out if your proposed action will help or hinder your ability to achieve your longer term goals. Links and resources: Michael Yardney Metropole National Property & Economic Market Update Promo Code: Podcast Stuart Wemyss director ProSolutions Private Clients Episode 1: What Makes an Investment Grade Property | Become the Pilot of Your Life, Not the Passenger Quotes: "You shouldn't be buying property for tax savings. Tax savings are just the cream on top." Michael Yardney "You should get some structuring advice before you buy your property. Once you have purchased your property, it will be a bit too hard and expensive to change." Michael Yardney "It's always a difficult balancing act when you first start off because your priorities and finances take precedent, but you should always take a long-term view." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

2018 is going to be a boom year. But before you get to concerned about "what I'm on" to make a statement like that, listen on as I share my perspective and why I think this going to be so. In my mindset moment, I'm going to talk about some interesting perspectives. Then I have a chat with my good friend Tom Corley about the rich habits that you must teach your children. Even if you are not a parent, these are still very important lessons. Once a year, I do a series of 1 day trainings around Australia to educate attendees. I will be joined by Dr. Andrew Wilson and Ken Raiss at the National Property & Economic Market Update. Use the promotion code "podcast" to join me as my guest. 2018 is going to be a boom year: My prediction is that 2018 is going to be a boom year for fright. The media is at it again and there is no shortage of scary stuff. If you look back every year has been predicted to be a boom year for fright. I have invested during property slowdowns, high interest rates, and times when prices were thought to never go up again. Despite all of this, the value of my properties keeps doubling allowing me to refinance and buy even more properties. There is always bad news and scary headlines in the media. This could have given me plenty of reasons not to invest in properties. To be a successful property investor, you need to step back and not be scared by every doom and gloom rumour and report. People are still living their lives, getting married, having babies moving house etc and a lot of people are getting rich. We're still experiencing strong population growth and all these people have to live somewhere. The fundamentals are sound when taking a long-term perspective. There are opportunities out there with less competition than last year. We are now entering a buyers' market. Smart investors buy in a buyers' market. 2018 is a great time to educate yourself and take advantage of opportunities. Mindset Message: It's all a matter of perspective I want to put things into perspective. What are your most important priorities? What are you going to focus on and what are you going to ignore? What if you only had 15, 10, or 5 years to live? How much time would you spend obsessing about investments and property rates? What if you only had 1 year, 1 month, 5 days, or 24 hours to live what would you spend your time on? Now that you have perspective, what are you going to do with the time that you have? Rich habits you must teach your children: Will your child be rich or poor? Are you, as their mentor, teaching them rich or poverty habits. Science shows that by the age of nine we have learned most of our habits. These habits come from our parents. We mirror our parents thinking, habits, and emotions. Emulating bad habits can force you into a situation where you are eeking out a living. The beauty of rich habits is that you only need one or two of them to transform your life. Habits like reading and exercising will change your future. If you don't accept responsibility for your life, you won't even be aware of the issues that are causing you struggles. Once you are aware and take responsibility you can make the changes in your life. Parents are responsible for most of the poverty in the world by not teaching their kids success habits. This is part of the reason why the rich get richer. It's not too late. People can change and become success oriented. You can change your habits anytime all throughout your life no matter what your age. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Thomas C. Corley Rich Habits Will your child be rich or poor? – 15 Poverty Habits parents teach their children National Property & Economic Market Update Promo Code: Podcast Dr. Andrew Wilson Ken Raiss I Spent 5 Years Studying Rich and Poor People and I Would Like to Share What Separates The Rich From the Poor Episode 1: What Makes an Investment Grade Property | Become the Pilot of Your Life, Not the Passenger Quotes: "If you look back, every year is a boom year for fright. As far back as I can remember, there have always been scary stories from the media." Michael Yardney "What you look for is what you see. If you look for bad news, you are going to find it. If you look for opportunity, you will find opportunity." Michael Yardney "It is so important to be responsible for your life rather than being a victim." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

If you're curious about what will be affecting the property markets for 2018, you will love today's show, because I discuss 8 trends that will affect the property markets for 2018. I'm also going to teach you one of the important laws of success which is the Law of Accumulation. After 5 years of soaring property prices the forecast for our capital city housing markets remains mixed for 2018, with property values likely to finish the year higher than they started, but growth will occur at a slower pace. The fact is, 2107 produced stronger average house price rises than many commentators predicted, however there are now signs that we've moved into the next phase of the property cycle as house price growth stabilises, auction clearance rate have dropped and lending to investors has slowed. Looking forward, here are 8 trends that could shape our property markets in 2018… Price Growth to Moderate - The phenomenal price growth experienced by Sydney and Melbourne over the last 5 years has come to an end. What will happen to property values next year will depend in what the RBA does to interest rates and if APRA tightens the screws on lending further. Having said that… Interest rate will remain unchanged - The official RBA interest rate is likely to remain at 1.5% throughout 2018. Australia's economy is still operating below its potential with economic growth not strong enough to justify an interest rate increase. The positive signs of jobs creation, falling unemployment and rises in full-time employment are being offset by slow wages growth, sluggish retail sales and a benign inflationary environment. Fortunately, the RBA will be pleased our property markets are cooling and will not feel the need to use rising rates to slow the market. APRA is unlikely to tighten its macro prudential measures - APRA is getting its way…. Under its watch stricter bank lending criteria have created a "credit squeeze" which has stifled the Sydney and Melbourne property booms. But this time round the slowdown has occurred in a low interest rate environment meaning our banks are in a healthy financial position and loan defaults are at a minimum. This means it is unlikely that APRA will need to tighten the screws further, but on the other hand it is too early for APRA to relax its guidelines. Jobs growth will continue - More than 335,000 jobs were created in the past 12 months, the majority in full-time work. And Australia's golden run of jobs growth is likely to continue to underpin our economic growth. Strong population growth will continue - Our strong population growth will also underpin our property markets. Last year, Australia's population grew by 389,100 people to reach 24.5 million by the end of March 2017. Demand for housing has averaged about 164,000 dwellings per year over the last 5 years and according to the ABS in the five years to 2021, continued strong population growth (underpinned by net migration of 240,000 per annum), plus some shifts in household composition (more one and two person households), means we're likely to grow by 172,000 households a year – a 5% increase in demand. Over the last year Victoria was the fastest growing state with a population increase of 2.4% and this soaked up much of the anticipated oversupply of new apartments in Melbourne.Net overseas migration accounted for 60 per cent of Australia's total population growth as we added 231,900 people to the population. Overseas migration was the major contributor to population change in New South Wales, Victoria, South Australia and Tasmania, whilst natural increase was the major contributor in all other states and territories. Brisbane will finally get its turn in the sun - If interest rates remain unchanged, APRA don't impose further lending restrictions and our economic growth remains steady, in the absence of any major international surprises this is what our research suggests is likely to occur to capital city property values in 2018: The Sydney property market has run out of steam, but won't crash like some are suggesting. Instead it is likely to grow between +4% and 6% Melbourne houses, townhouses and villa units are likely to be the best performing market - +6% to 10% Brisbane's market will move up a notch, spurred by jobs growth and infrastructure growth - +3% to 6% Hobart will again perform well - +6% - 10%; encouraged by speculators chasing the next hotspot. But remember how hot spots often become "not spots" – so with few long-term growth drivers, I would avoid the Apple Isle. Canberra will continue its steady performance - +4% to 7% - but excessive land tax is a strong disincentive to property investors in Australia's capital. Adelaide is likely to underperform again – 0% to 4% growth The Perth property market may be near its bottom, but won't see strong capital growth for a number of years - it's too early for a countercyclical investment - -1% to +1% Darwin has very few long-term growth drivers – but prices are likely to stop falling - -

2018 is going to be a very different year in property, so today we are going to discuss what is happening in each state around Australia and what you can expect to happen in our property markets. 2017 started with a bang and ended in a whimper. In the middle, foreign investment slowed down, we embraced stamp duty, and hiked land taxes. Other disincentives were given to foreign investors and APRA slowed down lending. Over the last property values rose 5.5 percent across all the combined capital cities. As always, the property markets were fragmented. Only Melbourne and Hobart record value growth over 10%. Perth and Darwin's property values decreased. Once a year I conduct a series of seminars around Australia, and I will be joined by Dr. Andrew Wilson, Ken Raiss, and local property experts. If you would like to attend for free use the Promotion Code Podcast at https://propertymarketupdate.com.au/ Today's discussion includes: An update on the following: Sydney Property Market with Ahmad Imam There is still good upside for investment grade properties The market sentiment is subdued and investors are holding Invest for long term capital growth and consider borderless investing Prices in Sydney should rise this year, but not as much as the previous 12 months You can't expect the same level of growth that we had over the last 4 or 5 years There will not be growth in secondary locations. This is a time to focus proven stable locations. People are looking at better class assets – a flight o quality. There is much less competition for the A grade assets because people are holding. Select the right location in the middle rings of Sydney and then find the right property there. Melbourne Property Market with Kate Forbes The fundamentals haven't changed – we'll have another good year in property. Last year we had 144,400 new residents. There are not a lot of vacancies – vacancy rates are around 1.8% The Melbourne property market grew by 10.1% last year Finance availability is cramping the number of people that can get into the market. Foreign investors have slowed because of finance challenges and new taxes. The introduction of a "Window Tax" for properties that have been vacant for six months. Will this lead to owners putting them on the market. Invest for the long term especially in the inner to middle ring affluent suburbs that are built out and have a reasonable supply cap. Growth corridors did well last year. As the markets are slowing these buyers will have more difficulty. As things slow down there is a flight to quality. Brisbane Property Market with Brett Warren Brisbane property had an overall growth of 2.45% last year, pulled down a bit by the apartment market. But there was solid growth of some housed - even 10 and 15% growth in superior locations You need to buy the right property in the right location to outperform the markets. Jobs and employment bring certainty and higher demand for housing. The Gold Coast may be a good market in the short term, but it is volatile and influenced by tourism. There is not enough job opportunity for long term growth on the Gold Coast. 60% of jobs in Queensland are around Brisbane. The demand for property will be where the jobs will be. Brisbane doesn't have urban sprawl and job opportunities in the outer suburbs. Buy in superior locations where all the boxes are ticked and demand is fairly high. Other Major Capital Cities of Australia Adelaide is still speculative. There weren't a lot of growth drivers like jobs. Perth hasn't bottomed yet. Sales volumes are down, but people are still waiting to see if it hits rock bottom. Significant oversupply of apartments in Perth. Hobart is still Australia's most affordable capital city. The market is very small. This years hot spot can be next year's not spot. Darwin is still suffering from the effects of the end of the mining boom. Cenberra is a two tiered market. Detached homes rose, but apartments are holding back. The population should grow 6% by 2020. It may not be a good place to invest because of the large land tax. There are some regional markets which are also growing well. The Property Markets of 2018 The market needed to calm down. The growth wasn't sustainable. There won't be a bubble or crash in 2018. There should be more of a soft landing. Hobart should be the hottest market encouraged by speculators – so it's one to avoid. Melbourne should be the second best performing market. Canberra will also be a steady performer. Avoid the apartment market. Well located homes in Brisbane should do well. Adelaide should underperform the other cities. Perth is near its bottom. Darwin property values will continue to drop. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Property Update App APRA Dr. Andrew Wilson Ken Raiss Ahmad Imam Kate Forbes Brett Warren My National Property Market and Economic Updates : http://propertymarketupdate.com.au Use Coupon Code: Podcast Quotes: "2017 was also the year when first time

With our property markets moving to the next phase of the cycle, how do you create capital growth? Do you have to change your strategy? Today, we discuss Some of the myths of capital growth. The "5 P's"that actually cause capital growth. Some likely trends for property in 2018, and I talk about what is ahead with Dr. Andrew Wilson, Australia's leading property economist from My Housing Market. 6 Myths About Capital Growth: Population growth leads to capital growth. That's only partially correct, but you need to find the right locations with the correct demographics and people with higher disposable incomes so they can afford to pay more for properties. Invest in any capital city and experience strong capital growth. Not true – in each capital city there are multiple submarkets. You can't just buy in any property and expect it to outperform. Buy land and it will appreciate. Not all land is equal. Target where you will get above average capital growth. Inner and middle ring suburbs of our capital cities are the places to invest. Find areas that are gentrifying and locations where people want to live and are therefore prepared to trade space for place. You can predict capital growth. There is no shortage of experts predicting the next hot spot. But most have been wrong much more often than they have been correct - you must understand the level of accuracy of their predictions. You are likely to get capital growth if you buy negatively geared properties. This is another myth as many negatively geared properties have experienced no or minimal growth. Negative gearings isn't an investment strategy, it is just the way the property is financed at a certain point of time. New developments are good news for an area. Not necessarily. These may lead to local population growth, but they often stifle the supply and demand ratio. The demographic may have less disposable income or be overstretched. The 5 P's of Capital Growth: People Purchasing power Position Property Places Some property market trends likely to occur in 2018: Increased stock levels, as more vendors come to market and thousands of new apartments are completed following the construction boom. A reduction in investor demand – due to lower consumer confidence and as owner occupiers struggle with affordability. Flight to quality - the buyers remaining in the market will be pickier given improved supply Auction clearance rates will fall back to the more normal rate of around 60%. Price growth will continue – albeit at a slower pace, particularly in Sydney and Melbourne's best suburbs. There will be some minor price corrections – a healthy outcome following such a prolonged period of rapid growth. The Bottom Line: don't let yourself be distracted by the headlines. Yes, the boom is over but the opportunity to make money in the slowing Sydney and Melbourne markets will always be there if you keep a long-term view. There will be some good opportunities in Brisbane in 2018. Links and resources: Michael Yardney Metropole Property Update App National Property & Economic Market Update Promo Code: Podcast My Housing Market Dr. Andrew Wilson Episode 1: What Makes an Investment Grade Property | Become the Pilot of Your Life, Not the Passenger Quotes: "After five years of an upward trajectory, we are now seeing affordability constraints, tighter lending criteria, and lack of consumer confidence. We have moved to a new normal." Michael Yardney "There are two things you can do about the new normal. Learn the new rules and understand how they work and take advantage of the current available opportunities." Michael Yardney "Real wealth from real estate is achieved through long-term capital appreciation and the ability to refinance and keep adding to your asset base." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

What habits do rich and successful property investors share? Today, we have another summer series episode of my show where I'm interviewed by Tyrone Shum of Property Investory. Tyrone digs in deep and asks what held me back when I first started investing in property investment. He also asks me about the rich habits versus the poor habits of property investors and why some are more successful than others. I explain a bit about the nuts and bolts of my own property investment strategy, and how I add value to property. I even give some insight into my personal habits that have helped me achieve my goals. Today's discussion includes: How Michael had a desire and dream to be a successful property investor, but his mindset conditioning would have only got him so far. Recognizing the importance of mindset and being mentored by Jim Rohn. What held Michael Yardney back when he made his first investment into property. Yardney's personal finance book, Rich Habits Poor Habits, he explains what sets it apart from other books on the market. Wealthy people do things and think in a certain way. Money habits include delayed gratification and saving and investing. Wealthy people also hang around with other wealthy people. How many people have had poor educations around money. People often have bad money habits and don't know how to get out of the rat race. Recognize what is not working and disempowering habits and then replace them one by one with empowering habits. The importance of having and being good mentors. Coming from a place of abundance and making other people wealthy while making the world a better place. Yardney explains the nuts and bolts of his own property investment strategy. How investor's today can be plagued with too much information. The importance of looking at what is going on in the future. Finding properties with continual strong demand. Population growth and demographics. How Metropole strategists come from a financial background and are wealth advisors. Yardney's six-stranded approach to identifying investment grade property to buy. How to add value to your portfolio. Michael believes in having a useful belief of taking responsibility for his actions and not blame others. Learning from mistakes and using those lessons to move foreword. Yardney's personal habits that helped him to achieve his goals. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Property Update App Property Investory Jim Rohn Wealth Retreat Roger Hamilton Christopher Howard Brian Tracy Quotes: "If you suddenly become wealthy, but your mindset does not grow to your level of wealth you will lose that wealth." Michael Yardney "Every year I upscale and upgrade the way I think about things because I want to keep growing." Michael Yardney "What average people think and do is very different from what wealthy people think and do." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes.

Are you interested in getting into property investment this year? Either your first investment or to grow your portfolio – well today's show is for you. Hopefully, you've been enjoying a bit of a vacation at the beginning of this New Year. Pam and I are currently cruising around South America, so this show is another episode in the summer series where I share the recording of an interviewed with me by Alex and Liz from the Finder Money Podcast In this episode, they ask me about how I got started in property investment and I give some of my best tips for those looking to get into the property market. During our chat I answer their questions and share the lessons I have learned from my hands on experience after buying my first investment property over 40 years ago. In the Podcast We Touched On: How real estate investment is not a get rich quick scheme. Running into problems by buying quickly and not investing in the right type of properties. Residential real estate is high growth relatively low yielding investment. Buying for capital growth as opposed to cash flow. The most important difference between successful and average property investors The three stages of your property investment journey: asset accumulation, lowering your loan-to-value ratios, and then living off of your property portfolio. How real estate investing is a game of finance with some properties thrown in the middle. Finding properties that will have strong demand in the future – what I call investment grade properties. How investment grade properties are stable with above average market growth. Where an investor should be looking in Australia for their first property How important location is in the success of a property investment and how property type factors into this Capital growth drives your investment. You need to get your first property purchase right. Why it's wrong to buy an investment property you would like to live in How you know when you're ready to invest in property Michael's personal property investment strategy and how he selects an area to invest in The difference between investment grade properties and investment stock Investing where the job growth will be. Why I think Melbourne and Sydney are still good places to consider invest. What really drives property prices How having the wrong habits and a poor wealth operating system is why so many don't get out of the rat race. Using debt to leverage your money and buy appreciating assets that go up in value. Some of the mindset differences between the rich and poor Recognize that you are where you are today because of what you have chosen to do and what not to do. Become financially fluent, learn about money, and hang around with people who are financially fit. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Property Update App Money Podcast #37: Michael Yardney gives us his best property investment tips Warren Buffet Quotes: "It's not the size of your portfolio that matters, it's how big the asset base is and how the properties work. " Michael Yardney "Find other people who have achieved what you want to achieve and then do what they do." Michael Yardney "Cash flow will never get you out of the rat race, but an asset base will." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Time is More Valuable than Money. Most people look at their bank accounts with great attention and assess how much money they have to spend, to invest, and to give away… ... In fact, time is much more valuable than money because you can use your time to make money, but you can't use money to purchase more time. In today's show, I chat with my good friend Louise Bedford about time management and investing your time like it is money. I know people say that time is like money, but I've found that when I invest money I make more. I have never found a way to get my time back. That is why today, we are teaching a different concept of time management. How to Invest Your Time Like it Is Money: Transforming your relationship with time so that you have more focus and balance and are able to get more done. How time is the one thing that we don't get a second chance at. How not all time is created equal. We need to leverage our time and do things in a smart way to become wealthy. Pretend you are going on holiday tomorrow and do what needs to get done. The importance of having integrity with our time. How women give, give, give, and their energy reserves get depleted. Putting your own goals and prosperity above everybody else's goals. Letting emergencies get in the way of your personal projects. Looking for time leaks, so that you can have the outcome that you want. Having a focus day where you isolate yourself from the world and focus on one core skill. Not letting distractions eat up your goal. Not having time shouldn't be an excuse. You should say it is just not a priority anymore. How 20% of your time produces 80% of your results. The sweet spot of time that produces results. How most people have no idea what their A, B, and C activities are and don't know how to structure their time. Leveraging your time and systems instead of increasing your hours. Getting into the level of genius and not getting overwhelmed with low-level activities. Structure your days to use your time more effectively. Upgrading your time is the wealthy solution. Trading time for dollars is the non-wealthy solution. Learning to structure your time to have fun, so you can work less for a longer amount of time and years. Delegating and dumping the D activities. Finding where you are wasting time. Tracking your activities and finding the time bandits. If it is not earning you money, creating pleasure, or giving back to your family or community then why are you doing it. Concentrating on one thing at a time and setting specific goals to manage your time. Not assigning too many tasks for one day, or using an electronic to do list which will automatically assign them to the next day. Getting the unpleasant tasks out of the way first thing. As long as they are important. Eat That Frog. Delegate. Don't do it. It takes practice to do what you need to do. Find the bottlenecks. Write down where the holdup is and then take action. Becoming accountable to somebody. Having mentors, business coaches, and being part of mastermind group. Setting your phone for 20 minutes and trying to complete a 25 minute task. Giving your family undivided attention. Michael Yardney's Guide to Getting Rich and the habits and thought processes for the rich. Getting a money education. Any problem that money can solve isn't a problem. Ask what the most productive and profitable use of your time is? Ask what the payoff is? How Michael has made more from saying no to things. Asking what your state of mind is? Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Property Update App The Trading Game The Forgotten Secret Lee Milteer Pareto Principle Todoist Eat That Frog Basecamp Guide to Getting Rich Vision Day Quotes: "Sometimes it's not about managing our time, but managing our priorities to achieve more." Louise Bedford "You have to put yourself and your time above everyone else's time." Louise Bedford "Having time integrity means that you are honoring commitments to yourself." Louise Bedford "It's important to know what is important. A lot of things are urgent, but are they important?" Michael Yardney "Working harder won't always give you the results that you want." Michael Yardney "Most professionals seek to increase their income by increasing their hours as opposed to leveraging their time." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Are you interested in getting involved in property renovations or development? In today's show I'm sharing an interview where Justin Gehde and I talk about how I got started in property renovations and development. This is part of the summer series of my show, where, while I'm on vacation, I pull out some of my favourite past podcasts not previously shared on this show. So today there are some great hints for you because I discuss many of the lessons I learned and some of the things that I got wrong along the way. How Michael Got Started With Property Development Michael bought his first investment property in the 1970s. He paid (a half share of) $18,000 for it and was got $12 a week rent. His second property needed a renovation. He got involved in development in the 1980s. He had good partners and mentors that helped him until the recession hit. Then he started helping others in the late 1990s helping people with property development management and doing development for clients. Michael is still very actively involved in property development. He enjoys creativity and finding solutions for problems. He takes pride in his large developments that have changed the face of some suburbs. Michael thinks property development is the best way to use money and buy assets cheaply. He doesn't flip, instead he renovates and holds on for the long term. In the 1980s Michael was very brave and maybe a little stupid, but he took some big risks and the rising market got him through He has learned from mentors and he has seen partners go bankrupt and he is a much more careful investor. A common problem Michael encounters with clients is they have unrealistic expectations. His advice is to start small do the renovation and then move up. The importance of finding investment grade properties in suburbs that outperform the averages and where the jobs are and where people have more disposable income. How today Michael conducts the orchestra and still has fun at work and undertaking property development. Michael still enjoys the marketing, research, recording the podcast, dealing with the media, and strategic actions. Michael and his property development management business became experts in certain municipalities, so they know what does and doesn't work. How experience makes a difference in property developments and creating the type of property that tenants want and what the end product should be. Location, owner occupier appeal, demand for a wide demographic of people who want to rent or buy there. Investment grade property. If starting over again, Michael would educate himself more and learn from people who have already done what he wants to do. Rather than flipping, property developers should be adding value, refinancing and keeping their properties. This way they are much more likely to become wealthy. Links and resources: Michael Yardney Metropole Metropole's property development services Rich Habits Poor Habits Property Update App Property Developer Podcast Our favourite show quotes: "Property investment and development is a game of finance and having the right cash flow." Michael Yardney "You have to have money set aside for a rainy day because the finance markets can turn very quickly." Michael Yardney "I'm actually having fun sitting back a bit and enjoying the results." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Would you like LifeTime Wealth? Well…today we'll explain what that means and how you could achieve it as I replay a chat I had with my good friends Louise Bedford and Chris Tate from The Trading Game and we discuss the concept of true wealth. Hopefully, your New Year's resolutions include becoming more successful and growing your wealth. If so, you will love this inspiring chat. How to Obtain Lifetime Wealth Michael shares how he bought his first investment property over 40 years ago. He's made plenty of mistakes, but has still built a substantial property portfolio. He also gives back. To be truly wealthy you need much more than just money. You need monet plus family, friends, health, spirituality, growth, and contribution. Chris shares his background. It is similar to Michael's but replace the word property with shares. How children absorb things without being taught directly. Legacy and leaving a ripple or something outside of you that carries on when you are gone. We learned about money, wealth, and riches from our parents and culture. What is your financial thermostat set for? You'll be surprised – it's set for what you have already got. Your thermostat won't change until you change and throw away the blame. The imposter syndrome or undeserved success. Not feeling worthy and self-sabotaging. Self-awareness deserving your success. How people believe the tool has something to do with their success, when it is actually the software that makes a success. How people who's views are mismatched may not be a match as a couple. The disconnect can produce tension and tear relationships apart. Couple's need to talk about their views about money. Partners need to be compatible on a whole host of issues. In the old day's people passed their trades on. Now property or shares can be passed to your kids, but it is not what you leave your kids it is what you leave in your kids. How we learn about money from our parents whether it is spoken or unspoken. Replacing non-productive beliefs with empowering beliefs. Teaching kids about training by loaning them money to trade and letting them keep half of the profits. How IQ and socioeconomic status can be linked. The importance of mentorship and getting together with other entrepreneurs. Find like minded people and the isolation disappears. How attending Wealth Retreat can help change your mindset and money habits. Links and resources: Michael Yardney Metropole Wealth Retreat The Trading Game Rich Habits Poor Habits Property Update App Chris Tate Louise Bedford Richard Branson Warren Buffet Donald Trump Robert Kiyosaki Our favourite show quotes: "Wealth isn't about how much money you have, but what you're left with if you lost everything and had to rebuild it." Michael Yardney "You either have to pay the world, the market, or your mentors when learning about investing." Michael Yardney "If you took all of the money in the world and divided it equally it would all end up in the same pockets again." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes.

What is ahead for 2018? I will give some of my predictions at the end of the show, but first we are going to talk about this year's Property Investment Sentiment Survey. To help discuss this I'm joined by Metropole Property Strategist Ahmad Imam because sentiment plays a big role in how the property markets perform. 2017 Property Investor Sentiment Survey Over 2,200 Australians have taken part in this year's Property Investor Sentiment Survey run by Michael Yardney's Property Update in conjunction with Your Investment Property magazine. Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from 2,250 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. One of the surprises is that despite our property markets moving to the next phase of the cycle and slowing down 1 in 2 investors plan to buy a property in the next 12 months. 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. It's clear that property buyers are intending to remain as active as ever, despite the fact that the boom is now well and truly over in Sydney, and strong growth isn't widely anticipated in 2018. Our survey reveals that 50% of respondents plan to buy another property in the next 12 months, and 60% believe now is a good time to buy property. This is despite the fact that the majority of respondents (64%) believe that property prices will remain flat, or increase by less than 5%, over the next year. It's also interesting to note where investors are planning to buy: more than half the respondents believe that Melbourne will exhibit the best capital growth over the next 5 years (52%), with Brisbane not far behind (45%)." 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 APRA-led lending restrictions. "Around half of the respondents reported that the recent changes to lending policy have impacted their ability to purchase another property, while 36% say that meeting the banks stricter serviceability criteria will be their biggest stumbling block to purchasing a property," said Sarah Megginson, editor of Your Investment Property magazine. Q1. How many investment properties do you currently have in your portfolio? That fact that 90% of respondents to our survey already own an investment property and more than 50% owned 3 or more properties showed that we are surveying a group of more investment savvy Australians. Q2. What is your preferred investment strategy? Close to 80% of respondents had a long term view of property as a high growth asset – rather than expecting cash flow from their properties. Q3. Is your property investment portfolio negatively geared or does it generate positive cash flow? Despite the vast majority of investors investing for capital growth, only 37% of investors held negatively geared properties suggesting that, over time as rents increase, negatively geared properties become neutrally geared and eventually provide cash flow. Q4. Do you believe now is good time to invest in residential property? ​ 61% of respondents believe now is a good time to invest despite the fact that the majority of respondents (64%) believe that property prices will remain flat, or increase by less than 5%, over the next year. Clearly they are taking a long term view. Q5. Are you planning to buy an investment property in the next 12 months? ​ Half the respondents plan to buy an investment in the next year again showing strong consumer confidence. Interestingly this is much the same as 12 months ago (52%) Q6. What type of property would you buy?​ More than three quarters would buy a property with land – a house, townhouse or villa unit. Apartments (9%) are out of favour at present – and not surprisingly so - as house price growth is significantly outperforming apartments in most capital cities ​Q7. Would you buy​? 42% of these investors saw an opportunity to "manufacture" capital growth by purchasing property with renovation or development potential Q8. Where would you buy for the best capital growth over the next 5 years? Melbourne was seen as the most likely capital city to deliver strong capital growth over the next 5 years (52%), closely followed by Brisbane (45%). These are the same to growth capitals that readers suggested 12 months ago and in virtually the same proportions (50% Melb and 45% Brisbane) Q9. What type of property do you think will make the best investment over the next 5 years? A detached house in the inner and middle ring suburbs of a capital city was seen as the best medium term investment (37%) while 23% will be looking for a property

How soon can you give up your day job if you invest in property? The answer may not be what you really want to hear. In today's show I discuss this as well as explaining the three P's of property price growth. Plus I highlight some interesting findings (at least I think they are) from the Census. And in my mindset moment, I am going to talk about the importance of a growth mindset. The 3P's of Property Price Growth People, Price and Place People: Demographics and how many people there are and how they want to live. In fact household formation is the biggest factor Price : Affordability of property which is related to wages, interest rates and property prices Place: - supply and demand Every five years the census helps us understand the changing demographics. As a property investor, you need to understand what properties will be in strong demand in the future – and the Census gives us clues. The latest census revealed that we add about 1,037 people to Australia every day. Australia has a sparse population density, and people congregate in the capital cities. Our median age is 38. We are slowly getting older. We are a diverse nation - Australians were born in over 200 countries. Almost half of the population were either born in another country or had a parent born in another country. Most of our immigrants come from China and India. The census gives details to where people's wages have grown. We pinpoint our research to find areas that will have growth. Mindset Message: Why a growth mindset matters. A fixed mindset believes you can't change your capabilities A growth mindset means you can move towards improving yourself. It all starts with your inner self. With your thoughts and feelings leading to your actions and results. In what areas of your life do you need to move from a fixed mindset to a growth mindset and what are you going to do about it? How soon can I give up my day job as a property investor? It's not easy to do this. Real estate investment is a slow game that takes 10 to 15 years of growth. You first have to build your asset base – and can do this by investing smartly in high growth properties. Then, slowly lower your loan-to-value ratios. But in the meantime you need to have a real job. Then use your asset base as a cash machine Residential real estate in Australia is a high growth, low yield investment. It doesn't matter how many properties you own. The question is how big is your asset base and how hard is your money going to work for you? To retire you'll need a 3 -4 million dollars in assets and your own home. Cash flow will keep you in the game, but it won't get you out of the rat race. House flipping doesn't work in Australia because of stamp duty and tax rules. It can take 30 years to build a substantial property portfolio, because most investors get it wrong in the first 10 years. Then it takes two or three property cycles to build their asset base. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Property Update App Our favourite quotes from the show: "Believing change is possible is one of the biggest tenets of personal development." Michael Yardney "A growth mindset makes change possible, but you still have to take action to achieve your goals and success." Michael Yardney "Your thoughts lead to your feelings. Your feelings lead to your actions. Your actions lead to your results." Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Today, we are going to spend some time talking about the Sydney property market. Even if you're not interested in investing in Sydney, there are some great lessons to be learned in this information. Of course, many investors want to know what is happening in Sydney. It's Australia's largest property market and price growth has stalled. People are wondering if now it the time to buy, sell, or hold. I discuss what's going on with the Sydney property market with Ahmad Imam, the Senior Property Strategist of Metropole in Sydney. In my mindset moment, I share with you the secret to living longer which has been proven by research. The secret is probably not what you think. 6 Things Property Investors Need to Know Before Investing in Sydney For some, just hearing the words 'Sydney' and 'Property' in the same sentence makes them cringe. While others will see dollar signs and opportunity. It really depends on your personal experience with property in Sydney and whether or not you are an Amateur investor or an experienced investor that has seen this all before. Let's face it, we receive so much conflicting information on a daily basis from so many different sources that at the end of the day you don't know if your Arthur or Martha. The reality is, if you don't keep up with the media you are uninformed and if you do keep up with the media you are misinformed. Seems like you can't win. Don't get me wrong some points are valid and some can be completely dismissed, so let me summarize the points and provide 6 things property investors need to know before investing in Sydney. 1 – Entry Level Price for an a Grade Asset When investing in Sydney you must be prepared to pay a higher entry level price than Melbourne or Queensland. Entry level for an investment grade property in Sydney is $600K and climbing. Compared to an entry level of $400K in Melbourne or $350K in Brisbane. That's a difference of $200K in this current climate of affordability constraints and tighter lending conditions. Keep in mind you can of course buy properties for less than $600K in Sydney but they would not be investment grade assets and you would be compromising on location and as a result the long-term growth potential of the asset. Do not assume that an A grade asset in Sydney must be a house in the Eastern Suburbs on a big plot of land. An A grade asset is simply an asset that is both strong and stable. Strong in that it has wealth building rates of growth and stable in that it is in a location that does not fluctuate in value. As investors, we like to see nice, stable, linear and predictable growth. As well as detached houses or townhouses we certainly see strong and stable growth in well located apartments in small to medium density boutique complexes in Sydney. Manage your expectations and do not be afraid to buy an apartment in Sydney if that's what your budget allows – as long as of course it ticks all the boxes. Do not also assume that a house is a better investment than an apartment if the house is 40km away from the CBD and has minimum growth potential. Yes, land is important but do not forget that not all land is created equal. Sydney is now a global city with a population of 5 million plus and as a result we are now starting to see it 'Manhattanising', and just like in Manhattan you can't expect to purchase a big house on a big block, in the right location within your budget. I would much rather an average sized 2-bedroom apartment in the inner middle rings of Sydney with great growth potential as opposed to a large 5-bedroom house 40km away from the CBD with minimal growth potential. This is an investment after all so take emotion and ego out of your investment decision. 2 - Don't Just Look at Rental Returns In my experience most amateur investors look at 2 criteria when investing in Sydney property - the price and the rental return or yield. Yes, they are both important criteria and you certainly need to secure the asset at the right price but one crucial factor that amateur investors neglect is the average annual growth of the investment i.e. Capital Growth. The reality is there are 2 philosophies for investing in property. You can invest for cash flow, as in your rental return or you can invest for capital growth. One must be compromised. Ideally it would be great to have both but guess what? You can't have your cake and eat it too. Now I'm not going to go into a debate about capital growth vs positive cash flow however it's fair to say the further away you go from the CBD the more likely you are going to find a property with above average yield and you will compromise on capital growth. And the opposite applies when you invest within the inner middle rings of Sydney, you are more likely to find a property that has above average annual growth but you will likely compromise on the yield. The rental yields we see for the properties we like to buy in Sydney are approx. 3% - 3.7%, however the growth we receive on these assets outperforms