Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

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

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

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

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

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

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

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

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

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

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

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

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

Are you a good negotiator? Negotiating is something we it constantly in all aspects of our life, from relationships to which path you choose to take on a crowded street. And of course, negotiation is one of the skills developed by savvy property investors, business people and entrepreneurs Some people are very good at negotiation, while others simply take what the other party is willing to give them. What is the difference between those two groups? The first group knows how to negotiate. Today I'll be talking about negotiation with the man who wrote the book on negotiation – in fact, he actually wrote 3 books on the subject – Wayne Berry. Wayne is the CEO of Top Gun Business Academy. Wayne has probably trained more successful salespeople than anyone else in Australia. So listen to our conversation to learn what you've been missing when it comes to negotiation. Some of the highlights from today's discussion: Life is one big negotiation: most things we want or need are either owned or controlled by other people, so it's important to be able to negotiate to get what we want. Life is easier if you're a good negotiator. There are three leverage points in negotiation: Information Time Power The first step of negotiating is to gather all of the information that you think is relevant around the situation. Attitude and expectation are great sources of power. Have an attitude that everything's negotiable is very empowering. Common mistakes people make in negotiation: Not realizing that everything is negotiable. Not doing any planning or preparation for the negotiation. Talking too much and not listening carefully. Negotiating will require different tactics depending on the personality of the person you're negotiating with. You first need to build rapport and trust to negotiate effectively. If you have more options you'll have more power in a negotiation, so if you don't have other alternatives, you should create them. Concessions should be traded and never given away. Find out what the other party can do for you. Sequence of a negotiation: Preparation Figure out what the other party is likely to want Clarify what it is that you want Understanding the decision-making process of the other party Find out if there are any other parties who will be involved in the decision-making process and involve them early on Links and Resources: Michael Yardney Metropole Property Strategists MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne and Brisbane Wayne Berry – Top Gun Business Academy Special Report – Sources of Power in a Negotiation Special offers from Wayne Berry – Online Sales and Negotiation Skills Program Some of our favourite quotes from the show: "A thinker has to be sold to, negotiated with in a very, very different way to an outgoing person like you or me, or analytical people need to be sold to differently than creative people." –Michael Yardney "If you don't like the circumstances, change the circumstances." –Wayne Berry "We're not taking advantage of people when we're doing these negotiations, you shouldn't feel that way. You're taking advantage of the situation." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

The beginning of the year is a good time to reflect on the last year and how things went, as well as consider what you want to do in the new year. Today I'm going to share with some of the things I wish I'd known earlier in life. I'll also chat with Ken Raiss about getting your kids into the property market. If you don't have kids, don't worry – there's good information in there for you too. And I'll answer a listener's question about the importance of past performance and how it relates to future performance of a property or location. 9 things I wish I knew back then Become the pilot of your life Everything changed for me when I learned that my thoughts lead to my feelings, my feelings lead to my actions and my actions lead to my results. This meant my inner world (my thoughts and feelings) controlled my outer world (my actions and results). The turning point was when I realised that I was responsible for all the things (both good and bad) that happened to me. I then became the pilot of my life and not a passenger. And even if it's not true, I know I act differently, and my results are better because I believe I'm responsible for everything that happens to me. Keep your eye on the prize! When I was young no one taught me about the Reticular Activating System, that part of your brain that only lets you see in your surroundings what you focus your thoughts on. It pretty much always helps you to find what you are looking for. Setting goals and regularly reviewing them is one way to keep your focus on what's important and to help you take action that will move you closer to toward where you want to go. Your attitude changes your reality. It's the old "is the glass half full or half empty" story. When things happen in life that we don't like, we can either choose to see them as a problem or as a solution waiting to be discovered. It took me quite a while to discover that if you change your attitude, you actually change your reality. When you have a positive attitude instead of a negative, one you start to see things and viewpoints that were invisible to you before. You must give to receive. As children, we are told that the joy is in giving rather than receiving. But as we become adults, for many life becomes about what we can get out of someone or something. However, if you want to increase the value you receive (be it money, love, kindness, opportunities) you have to increase the value you give. Because over time what you get is in proportion to what you give. While it would be nice to get something for nothing, that seldom happens. Be Pro-active rather than reactive There seem to be 3 types of people: Those who make things happen Those who watch what happens, and… Those that sit and wonder "what just happened?" Be in the first group and always be on the lookout for opportunities. Make your time count! How often have you heard someone say: "time flies"? Indeed, it does, so use it wisely! Just as you are careful about how and where you invest your money, you should also be careful as to how you invest your time. The Pareto Principle says that 80 percent of the value we receive comes from just 20 percent of what we do with our time. So what things do you spend your time doing that take a lot of energy yet deliver few results? Mistakes mean growth! Sometimes negative experiences, mistakes, and failures can be even better than a success because they teach you something new which another win could never teach you. However, we are often so driven to get things right that we fail to see the value in the things we get wrong. Instead, we spend our time wishing we had done it differently. Or not doing anything at all because the fear of making mistakes paralyzes us. If you get it wrong, learn from your mistake and make it count by doing it differently next time. One "failure" can – with time – help you create many successes. Don't waste your time worrying Most things you fear will happen, never do. They are just monsters in your mind. And if they do happen then they will most likely not be as bad as you expected. So now when confronted with a challenge I put things into perspective by asking myself: What's the worst that can happen? What's the best possible outcome? And… What the most likely thing that's going to happen This means you shouldn't take things too seriously because that which seems like a big problem today, you may not even remember in five years. So, lighten up a bit. Time spent worrying is time that could be spent identifying opportunities and taking action. Don't compare yourself to others. When you compare yourself to others you let the outside world control how you feel about yourself. Instead strive to become the best you can be and look at how far you have come, what you have accomplished and how you have grown. In conclusion, we live in the best country in the world and at the best time in history. Appreciate what you have and enjoy the journey of life because an attitude of gratitude is a simple w

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

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

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

Wondering what's ahead for property in 2019? Maybe you'd like to know what other Australian property investors plan to do? Well that's exactly what we discuss in today's show as we unpack the results of this year's Property Investor Sentiment Survey You'll hear what over 1,800 Australians feel about our current real estate markets and what they plan to do. You see...they took part in this year's Property Investor Sentiment Survey run by my Property Update newsletter in conjunction with Your Investment Property magazine and onthehouse.com.au Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. Some surprises One of the surprises is that despite our property markets moving to the slowdown phase of the cycle more than half of the respondents believe now is a good time to invest despite the fact that the vast majority of respondents (84%) believe that property prices will fall or remain flat over the next year. Clearly, they are taking a long-term view. However, this is significantly down from last year when 61% of respondents thought it was a good time to invest. At the same time, the percentage that were unsure increased to 23% (up from 16% last year.) However, they are realistic that they won't enjoy quick and massive capital growth in the near future, but they still intend to buy more property in the next year. Our survey reveals that 42% of the respondents plan to buy an investment in the next year again showing strong confidence in property as a long-term investment. Not surprisingly this is down from the last 2 years where on both occasions more than half (52%) the respondents were planning to invest in the coming year. It's also interesting to note where investors are planning to buy. South East Queensland is seen as the best place to invest over the next 5 years according to close to 70% of respondents (this includes Brisbane, the Gold Coast and Sunshine Coast.) Last year more than half of the respondents nominated Melbourne as the place to be last year, Their focus is on long-term capital growth, rather than an immediate equity boost, and they're looking at property that has potential to add value, Perhaps unsurprisingly, it also reveals that many investors are feeling the impact of credit squeeze with bank's tighter lending restrictions. Almost half of respondents are finding the recent tighter lending criteria impacting their ability to purchase another property. Interestingly this is only slightly higher this year (48%) than last year (46%) 19% of respondents plan to buy a new home in 2019. This is down from 23% last year (but still higher than the number planning to buy a new home 24 months ago (14%) Links and Resources: Michael Yardney Metropole Property Strategists Ahmad Imam – Director Metropole Sydney Sarah Megginson Editor Your Investment Property Magazine Results of the 2018 Property Investor Sentiment Survey Some of our favourite quotes from the show: "And again, it's not a competition, but it's interesting to know what people are thinking, what they're planning to do, because that's going to, I guess, set the scene for the markets for the next year." –Michael Yardney "The average property writer for the big media, they're young people who probably have no background in real estate and wonder about these ugly greedy investors who've got properties, and they're almost asking for the property market to crash." –Michael Yardney "I'd rather buy in the better location and a smaller component of land, than further out in a house with a big block of land that isn't going to do as well. As we keep saying, it's the location that does the heavy lifting." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Are you wondering what's going on with the property market – whether you should buy, whether you should sell, how your property portfolio is performing? The media is full of mixed messages, so no wonder you're confused. There's no doubt we're at the next phase of the property cycle, what some call the slump phase. But not all properties are slumping. Today we'll talk about what you should do as a property investor in a buyer's market and which types of property will hold their own. We'll look at previous cycles and research to determine which properties do better in a buyer's market. I'll also share a mindset moment, with a mentorship lesson from my own mentor Jim Rohn. Then we'll have a chat with Ahmad Iman, Director of Metropole in Sydney, about what investors are looking for in terms of their financial goals. Which properties will outperform in a buyer's market? The property market began to slow down around the middle of last year. Now the market is much softer. What happens next is dependent on finance and consumer confidence. Property values in some areas of Sydney and Melbourne may keep falling until sometime next year, but not by more than 5%. However, investment grade properties are not falling. They're holding their value. The Perth property market is likely to bottom out sometime over the next year or so. Its recovery is likely to be slow. Hobart's strong property growth is likely to slow down. Brisbane will probably be the strongest property market over the next couple of years Investment-grade properties and A-grade homes are holding their values even in the weak parts of Melbourne and Sydney. If you're a homebuyer, your family needs should dictate when you buy your next property. This is a good time for first home buyers to buy a new property or for established home buyers to trade up. If you're interested in investing, the best time to buy is when you have the financing to do so and the situation fits in with your long-term plan. Don't try to time the market. How do your goals compare to other investors? Most clients have an end goal of financial independence. Beginning investors are looking for a property profile that generates $100,000 in passive income per year. The average Australian couple needs about $40,000-$50,000 just to live a modest lifestyle. $100,000 a year gross is very different from $100,000 a year net. Another common goal is 4 to 5 investment properties by retirement age or financial independence age. The size and value of your asset base and the quality of your investments is more important than how many properties you have. Experienced investors often have a goal of a property portfolio that generates close to $200,000 in passive income per year. It's important to consider your own existing lifestyle and spending habits when setting a passive income goal. More sophisticated investors look at purchasing developments or blocks of units to renovate. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Michael Yardney's Property Renovations and Development Workshop Ahmad Imam – Director Metropole Properties Sydney Some of our favourite quotes from the show: "And as always, steer clear of the many property spruikers that are disguised as investment advisors but who are actually working for the project marketers or the developers." –Michael Yardney "Even the experts can't time the market." –Michael Yardney "As an investor, you need to take a long-term view, do your homework and research carefully and make sure you don't overpay, and go out and buy that property today – the sort that you would have had to fight much harder for a few months ago." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

The wealth gap is widening around the world. The rich get richer and the poor get left behind. But why does this happen? According to Tom Corley, the gap is really a parenting gap, not a wealth gap. In today's episode, we'll discuss 10 critical habits that the self-made wealthy learned from their parents. This will help you understand the lessons that you should be teaching your children to help them grow up to be successful. And if you haven't yet learned these lessons yourself, it's not too late to do so. 10 critical habits the wealthy learn from their parents You create your life. Your life is not determined by the government, other people or external circumstances. You are the pilot of your life. Take responsibility when things go wrong. Don't blame others or play the victim. Respect the law. When you break the rules, people don't trust you and don't want to do business with you. Seek your main purpose. Kids should experiment with different activities so that they can find and identify their true talents. Pursue your dreams and goals. Define an ideal future life. This creates clarity and helps you see down the road and focus your attentions. Acquiring wealth is a good thing. Wealthy people help fund charities, build hospitals and schools. They should be looked up to. Work hard for what you want. You don't have to be born wealthy to attain wealth, but you do need to be willing to work hard for it. Respect other people's property. You're not entitled to something that another person has. Don't expect others to give you anything. Improve yourself daily. Parents of self-made wealthy people teach their kids to focus on growth and knowledge. Use time productively. Don't waste time on distractions. Use your time to learn and improve yourself. Make productivity a habit. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "We know that mentors, models are really important in life because we learn a lot of our habits, the things we do on a regular basis, from things we see, things we hear, things we experience as a child." –Michael Yardney "Clearly, when you make money doing what you love, it leads to a different sort of resilience, it lets you get through the difficult times because all businesses have their ups and downs and challenges. It leads you to your true calling in life. –Michael Yardney "You don't have to be born wealthy. Most successful people today, we're not born that way." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

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

In today's show, I'll answer two listener questions. The first question is from Trent who is concerned about what will happen to our property markets if Labor Party's proposed negative gearing and Capital Gains Tax changes are introduced. Then we'll answer Joanne's question about whether you need a will. In my mindset message I'll talk about 20 regrets people have when they die. You may be surprised by some of them. House prices could drop 10% if ALP policies are introduced A report recently showed that house prices could slide by up to 9% in Sydney and Melbourne if the labor party gets into power and introduces its planned property tax changes. A report from RiskWise Property Research assessed the potential impacts of the proposed reforms to limit negative gearing to new rental dwellings and to halve the CGT tax discount. According to the report, an unintended consequence of the ALP policies would occur in the our national property markets where the proposed changes would be the equivalent to a sudden 1-1.5 % increase in interest rates. This could also cause housing prices to drop by 9 and 10% in certain parts of Australia. These proposals were first muted before the previous election, almost three years ago. But the housing market is very different now. Falling house prices are now making homes more affordable. Yet shadow treasurer Chris Bowen has said that the negative gearing and CGT changes are about making long-term structural adjustments rather than addressing the short-term property cycle Another issue is that property investors will be driven to buy new properties, both apartments (which will generally be in the CBD and houses (which are likely to be in the outer suburbs.) Both these types of property make poor investments because of their locations and will make even worse investments as, once purchased, will be established properties. However, in the long-term, property is going to remain a great long-term investment. Don't allow these short-term proposed changes to not alter your long-term strategy. Remember…negative gearing is not a property investment strategy, it's a short-term financial position. My strategy (and yours) should be to build as big an asset base as we can, so in the future we have choices. The bigger the asset base you have, the more choices you'll have. There will be many, many changes to tax and superannuation laws between now and when you retire, so don't change your long-term strategy because of short-term ups and downs. Do I need a will? Studies have shown that at least 45% of Australians do not have a will. With no will, the government will decide who gets your money according to pre-determined formulas It's important to set up the right type of will. An estate lawyer is the right person to do that for you. How your assets will be distributed affects what taxes will be paid, the protection of those assets from one generation to another, and whether your assets end up where you intend them to go. You should have a couple of options for executor in your will, in case one person you've chosen doesn't want the job or isn't there. There are basically only four categories of people that can inherit superannuation: spouses, children, people who are financially dependent, and interdependent people. Different taxes apply within those groups. Shares and superannuation can be taxed in some circumstances. Links and Resources: Michael Yardney Metropole Property Strategists Ken Raiss – Metropole Wealth Advisory RiskWise Report – The Impact of Labor's proposed tax changes Some of our favourite quotes from the show: "Another regret people had was not accomplishing enough. I guess the lesson is, start taking action." – Michael Yardney "Everyone's got their own idea of what risk is, but you know when you're living too much in your comfort zone." – Michael Yardney "Clearly one of the big benefits of having a will is it provides certainty on your death, it gives certainty about your wishes, how you want your assets passed on, how you want them divided." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Who's right about the property markets – the pessimists or the optimists? In today's Podcast you'll find out. Following a couple of booming years where property values in Melbourne and Sydney experienced double-digit capital growth year on year, our markets have moved to the next stage of the property cycle where price growth has slowed in some cities and property values have fallen – particularly in Sydney and Melbourne. Not surprisingly this is allowing some of the property pessimists on the internet forums to rub their hands in glee saying, "I told you so." Sure, our property markets are experiencing a slowdown, but values are still rising in many locations, and yes prices are falling a little in some locations, however, we're not in for a property crash and in today's show I'm going to chat with Pete Wargent to explain why we're not worried about a property market meltdown. Why our property markets won't crash One of the most frequent questions I'm asked at present is "how long will this property market downturn last?" Another one is – "Will our property markets crash?" So if you are considering investing in property, or about to buy a home, it would be good to know the answer to these questions. But firstly, remember there is not one property market around Australia. Our markets are fragmented – not only is each state at its own stage of its property cycle, but within each state different segments of the markets are behaving differently. If there isn't one market, it means it doesn't really make much sense to say the "Australian property market" will crash, to look at this topic in a bit more detail I've got Pete Wargent on the line. What could cause a crash as opposed to an orderly drop in prices We're experiencing a soft landing. On the other hand, a true collapse in house prices would require some large external shock such as: Unemployment high enough to trigger a wave of forced home sales. High-interest rates that would cause a raft of homeowners to default on their mortgages. Severe credit squeeze A severe recession that would cripple our economy. A significant oversupply of property. A halt to the rising population. Changes to government legislation making property investment less favourable. The fundamentals underpinning our markets World economy behaving itself Australian economy growing at around 3% No likelihood of an interest rate rise any time soon Our financial system/banks are in good shape Employment growth Strong population growth at a time when new constructions are slowing down Have not had a "crash" since the late 1890's – we have corrections on a regular basis Underpinned by the high percentage of homeowners More families at household formation age (esp immigrants Oversupply of property limited to certain locations only – lots of secondary property and a shortage of A-grade property No real concern about the level of household debt – on the whole, it's in the hands of those that can afford it No real concern about Interest only loans converting to P&I A culture of home ownership – 70% of us own or are paying off our homes The bottom line: For a number of years now bubblers and doomsayers have been predicting the bursting of Australia's property bubble. They've told us we're in denial about the impending gloom blinded by the consistent performance of our property markets over the last few years. We've just explained what could cause a property market collapse, but we've also explained why we don't think we should be worried. However, we need to be vigilant. As investors, we need to be aware of what's happening in the world's economies as Australia does not operate in isolation. And needs to keep cognizant of what's happening in our property markets Remember there is not one property market and some locations including Brisbane are going to outperform. BIS Oxford predicts an 11% increase in Brisbane property values by 2021. Strategic investors will take advantage of the opportunities our property markets will offer over the next couple of years maximizing their upsides while protecting their downsides. Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney's Mentorship Program Pete Wargent Some of our favourite quotes from the show: "One of the things that's been pushing up our property markets has been the rising population that's been underpinning it, particularly in Melbourne and Sydney." –Michael Yardney "This is just part of the property cycle. Don't change your long-term strategy of wealth creation because of a short-term blip in the market." –Michael Yardney "If you've got the cash flow, you're going to get through." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

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

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

Who make better property investors – women or men? Up till now the answer may have depended on who you asked (or what gender they were) but neuroscientists have uncovered evidence suggesting that, when the pressure is on, women bring unique strengths to decision making and make less-risky decisions under high-stress situations. According to the neurobiologist Ruud van den Bos, men under stress experience a huge spike in cortisol, which degrades their decision-making ability. Women experience a smaller spike, which creates urgency but doesn't impede decision-making. Every pundit and analyst in the business world has repeatedly pointed out that today's business world is continually getting more stressful. The more stressful things get, the better that women (on average) will become at making decision than men (on average). So, the conclusion I have come to is that when the going gets tough, she gets smarter and you get dumber. And since disruptive innovation means the going is always getting tougher, if you're not hiring and promoting women, you're only proving how dumb you are. But back to property investment… Who make better investors? When it comes to property, men have a higher tendency to gamble and are more easily manipulated while women are usually more cautious, seeking low-risk and long-term sustainable capital growth. Riskwise found that Property marketers often use enticement by appealing to men's visual senses. For example, it's common practice for female models to be hired to stand beside professional sales people at property expos. A study of real estate agents who hired models in the past several years is revealing. Typically, the models increased the traffic to their booth by 50 to 100 percent, with a similar increase in the rate of high-quality sales leads, many of which converted into transactions. It was noted by these agents that even a short absence of the model resulted in an immediate and significant decrease in traffic to their booth. And you know those so-called free educational seminars which are designed by real estate spruikers to sell off-the-plan, and often low performing, new properties? Women are more likely to recognise that they are not the client at a free seminar and, in fact, the seminar organiser likely works for a property developer and has a contractual obligation to sell the properties for the highest possible price. Men, on the other hand, are more likely to be swept up in the hype and believe they are the client, and that the organiser of the free seminar will truly act in their best interests. Are women really better property investors than men? And if so, why? RiskWise research shows women are more aware of risks and seek tools to manage it; men tend to ignore the risks. Women's interest in risk and mitigation strategies is 38 per cent higher than men. In fact, studies have shown men are overconfident and have a higher tendency to gamble. Of course this is a concern in the property market, where high-risk ventures can have devastating consequences. Are there differences in the money behaviours of men and women? GAMBLING -- Women gamble less than men. Not only do fewer women gamble, but for the women who do gamble, they gamble less frequently. RISK TOLERANCE -- Men have a higher risk tolerance than women. This is a good thing and a bad thing. A low risk tolerance is a good thing when it comes to making big purchasing decisions. Women are more apt to study the details of a major purchase than men. The devil is always in the details. So, understanding the details can save you from making a big purchasing mistake. READING -- Women read more than men. That's the good news. The bad news is that women read more for entertainment. Men, conversely, read more for learning and self-improvement. COMMUNICATION -- Women are better communicators than men. The average woman speaks 7,000 words a day compared to 2,000 for men. Good communication is a Rich Habit. Miscommunication damages relationships, businesses, negotiations and can lead to mistakes and failure. CREATIVITY -- Men are more creative than women. This is physiological. Men have a smaller corpus callosum. The corpus callosum is the bundle of neural nerve fibers that separates the right hemisphere of the brain from the left. Recent studies on creativity have shown that those with a smaller corpus callosum are hardwired for greater creativity. ORGANIZATIONAL SKILLS -- Women have greater organizational skills than men. Because they pay more attention to details and are more cautious by nature, they tend to do more planning. This makes them better organized when it comes to facts then men. SAVING MONEY -- Women are better at saving money. They are more cautious with their money. They comparison shop to get the best deals. They look for discounts. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney's Mentorship Program Some of our favourite quotes from the show: "We can't make the big jobs

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

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

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

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

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

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