Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

It was the blunt but ingenious billionaire Kerry Packer who memorably explained to a stunned parliamentary committee exactly how the tax system works. The late business tycoon said, "I'm not evading tax in any way, shape, or form. Now, of course, I'm minimising my tax, and if anybody in this country doesn't minimise their tax, they want their heads read, because, as a government, I can tell you you're not spending it that well that we should be donating any extra now." This classic summary of how things really work on the ground is just as accurate today as it was 33 years ago, and it'll probably remain accurate for many decades to come. So, have you ever wondered how the wealthy seem to pay less tax than the average person? Well, my guest today is accountant Alan Mason, who was Kerry Packer's former accountant, and he's the author of the book The Tax Secrets of the Rich. Our discussion today will be critical for all businesspeople, but if you're a property investor, you are in the business of providing rental accommodation, so let's find out the tax secrets the tax office doesn't want you to know about. Proven Tax Strategies from Alan Mason The wealthy use sophisticated tax strategies to legally minimize their tax obligations and build substantial wealth. Alan Mason, the former accountant of billionaire Kerry Packer and author of Tax Secrets of the Rich, shares his vast experience in our conversation today, offering valuable tips for businesspeople and property investors looking to optimise their tax strategies. We discuss: ● Alan Mason's 40-year career in tax and accounting, focusing on strategies used by high-net-worth individuals to legally minimize tax obligations ● Kerry Packer's impact on business and cricket ● Debunking common tax myths ● The importance of having a proactive and knowledgeable advisor ● Legal avenues such as charities and foundations that high-net-worth individuals use to minimize tax liabilities while maintaining transparency with the ATO ● Strategies for handling complex transactions o Restructuring deals to be more tax-effective o The importance of pre-planning for tax liabilities ● Strategies for property investors o Offsetting capital gains with losses o Prepaying interest to minimize tax bills ● The significance of proper record-keeping and leveraging tax refunds to grow a portfolio ● Adopting a millionaire mindset o Questioning the status quo o Seeking quality advice o Investing in professional advisors ● Where people can find Alan's book By the end of this episode, you'll gain a deeper understanding of the strategic tax planning and wealth-building strategies used by the rich, which will give you practical advice to grow your financial independence. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us About Allan Mason Tax Secrets of the Rich - Buy Allan's book here Get a bundle of eBooks and reports = www.PodcastBonus.com.au Some of our favorite quotes from the show: "Many people who have family trusts don't even understand the importance of the various people in the trust. So, you are mentioning the trustee can be changed, and this means it's important to become the appointor." – Michael Yardney "So really what we're talking about is building up passive residual income that you don't have to work for anymore, and your money's working for you even when you're asleep or away on holidays." –Michael Yardney "You see, the path to becoming wealthy is a long journey. The self-made millionaires in Tom's study understood how hard it was to accumulate their wealth, and because of this, because of their smart money mindset, I guess that got them there." – 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

On today's episode, I chat with Brett Warren about asking the right questions before buying that next property because doing that can make all the difference between a profitable venture and a costly mistake. I'm sure you've heard me say before that property investment is a process, not an event, and the property that you're going to eventually buy should be the physical manifestation of a whole lot of decisions you make. So, in today's episode, we're going to explore the top 10 questions you've got to ask before making that next big purchase, and they're going to help you evaluate potential investments and understand market dynamics. We're going to try and make sure that you set yourself up for long-term success. So, by the end of this episode, you should have a comprehensive checklist to help you make informed and confident decisions in your property investment journey. Essential Questions to Ask Before Your Next Property Purchase ● Does this property fit into my long-term investment strategy? o Ensuring that the property aligns with your long-term financial goals and risk profile is essential for sustained success in property investment. ● Have I created a comprehensive investment strategy? o A documented and proven strategy helps you make informed and confident decisions, reducing the likelihood of costly mistakes. ● What is the true value of the property? o Understanding the property's value through recent comparable sales and intrinsic values helps set realistic market value thresholds and avoid overpaying. ● What are the current market trends in the area? o Knowledge of market trends ensures that you are investing in an area with strong growth potential and avoids the pitfalls of investing based on outdated or unreliable data. ● Have I secured pre-approval for finance? o Pre-approval provides clarity on your budget, strengthens your negotiating position, and ensures you can make a firm offer without finance contingencies. ● Do I understand the local area and its growth potential? o Local expertise is crucial for making informed decisions and understanding factors that can affect the property's value and rental demand. ● Is the property investment grade? o Not all properties are suitable for investment. Investment-grade properties offer strong capital appreciation, and steady cash flow, and are in high demand. ● What is the cash flow and repayment capacity for this property? o Understanding cash flow and having a financial buffer is essential to handle unexpected expenses and ensure you can manage the property sustainably. ● What ownership structure is best for this property? o Choosing the right ownership structure can optimize tax benefits and provide asset protection. ● Have I conducted thorough due diligence on the property? o Assessing body corporate fees, potential structural issues, and other hidden costs helps avoid surprises and ensures the property is a sound investment. ● Am I approaching this decision as an investor or am I emotionally involved? o Emotional decisions can lead to poor investments. Staying objective and focusing on the property's financial viability is crucial for long-term success. Hopefully, after listening to this episode you've learned insights and tools you can use to enhance your investment journey and ultimately reach your financial goals. By asking these questions, you can make well-informed decisions that align with your investment goals and mitigate risks in your property investment journey. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us. Brett Warren - National Director Metropole Get a bundle of free reports and eBooks – www.PodcastBonus.com.au Some of our favourite quotes from the show: "It's not as simple as some of the people tell you on social media. You can't buy 10 properties in 10 minutes, but if you have the right strategy, you definitely can outperform the markets ." – Michael Yardney "I've often said I don't think I've ever bought a bargain. By the way, in today's very informed market, if it looks like a bargain, be very wary ." – Michael Yardney "Complaining is not for winners in life. You must focus on what you can do, not what you can't do. You must focus on opportunities, not on difficulties." – 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

Today we discuss a topic that many property investors across Australia are concerned about. Considering the rising cost of holding investment properties, is it still worthwhile to invest in real estate? Joining me is Stuart Wemyss, a respected independent financial advisor, author, and founder of Pro Solution Private Clients, and together we're going to be exploring the reasons behind some of the escalating holding costs, the impact on investors, and whether property investment really continues to be a sound long-term strategy. Stuart will also share his thoughts on how investors can mitigate some of these costs and what the future holds for our property markets. So, whether you're just starting out and not sure about all the negative news you're hearing, or you're a seasoned investor and just want some confidence to keep going, this episode's packed with valuable information you're not going to want to miss. Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart's Books – Rules of the Lending Game & Investopoly Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Rising Holding Costs: Is Property Investment Still Worth It? With Stuart Wemyss

Today's episode will be a bit different than usual. Joining me today is Brett Warren, National Director of Metropole Properties, and we're dedicating this entire episode to answering your questions. So, whether you're a seasoned investor or just starting on your property journey, stick around because we've got some great questions and even better answers coming up. Let's jump right in! Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Brett Warren - National Director Metropole Shownotes plus more here: Investor insights: your property questions answered, with Brett Warren

In today's show, Ken Raiss and I will discuss inheritance strategies to help make your children richer. Whether you've already built substantial wealth or are just starting your financial journey, it's never too early or too late to start thinking about how to pass on your wealth to the next generation. Today Ken shares his insights and expertise on estate planning, trust structures, and tax implications of inheritance. We discuss the pros and cons of different strategies, including gifting, testamentary trusts, and family trusts, and explore how these can be tailored to your specific needs and circumstances. So, whether you're a parent looking to provide for your children's future, or just curious about inheritance strategies and how they work, this episode is for you. Estate Planning Essentials with Ken Raiss I hope that by the end of this episode, you'll gain a deeper understanding of how to craft a legacy that not only protects your assets but also prepares the next generation for financial success. Ken's expert insights provide valuable guidance for anyone looking to secure their family's financial future and ensure a smooth transfer of wealth. We discuss: ● Inheritance strategies for wealth transfer, focusing on estate planning, trust structures, and tax implications ● Importance of creating a strong will and communicating effectively with family members to avoid contested wills ● The benefits and flexibility offered by family security trusts, testamentary trusts, and charitable foundations ● Strategies for financially educating family members to ensure they understand and respect the assets they will inherit ● Complexities of blended families and how to safeguard assets for original children ● Special disability trusts to protect and provide for children with disabilities ● Business succession planning o Key agreements o Insurance considerations ● Importance of involving children in financial responsibilities ● Education trusts and their role in funding children's schooling in a tax-effective manner Links and Resources: Ken Raiss, director Metropole Wealth Advisory Have a chat with Ken Raiss and the team at Metropole Wealth Advisory to secure your financial future – click here Get Ken Raiss' report: Your Guide to Understanding Ownership Structures & Trusts – just click here Why not get the team at Metropole on your side to give you holistic property and wealth advice– find out more here Get your bundle of E-books and resources my gift for subscribing to this podcast www.PodcastBonus.com.au Some of our favorite quotes from the show: "In essence, the owner of the assets doesn't change, it's the trust, it's just the people who control it, who have access to it, that change." – Michael Yardney "A testamentary trust can be set up during your lifetime. It forms part of your will, but it only comes into effect upon your death." – Michael Yardney "And here's a little-known secret to success that only a small number of employees have ever discovered: going that extra mile is an investment in 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

Welcome to another Big Picture episode of the Michael Yardney podcast, where I chat with leading financial commentator Pete Wargent. Since our last chat, a lot's happened, including rising inflation causing embarrassment to the Reserve Bank, with some commentators now speculating interest rates will rise again. As usual, there are clues in the news as to what's ahead for our economy and our housing markets and we discuss a raft of macro and microeconomic factors that should give you some clues as to what's ahead for our housing markets. Housing Market Hurdles and Economic Trends in Australia We discuss: ● The May inflation figures and their potential impact on future interest rate hikes ● How government spending, particularly federal and state budgets, is contributing to inflation ● Rising living costs and electricity prices and their effects on spending habits across different demographics ● Challenges faced by the Australian government's target to build 1.2 million homes by 2029 o High cash rates o Reduced investor interest o Soaring construction costs ● Comparing current construction trends to peak periods like 2017 ● The roles of foreign buyers in the market ● Insights from Pete's book, The Buy Right Approach to Property Investing Mastering the Skills to Invest Wisely in Properties. This episode is packed with expert insights from Pete and practical tips, making it a must-listen for anyone interested in understanding and navigating the complexities of Australia's economic and housing market landscape. Links and Resources: Metropole's Strategic Property Plan – to help both beginning and experienced investors Get a bundle of free reports and eBooks – www.PodcastBonus.com.au Pete Wargent's blog Pete Wargent's new book: The Buy Right Approach to Property Investing: Mastering the skills to Invest Wisely in Property Some of our favorite quotes from the show: "Well, the May housing approval figures came out and they shot up a little bit, but we're still nowhere near the sort of figures we're going to need to reach that target." – Michael Yardney "I guess what we're saying is that unemployment is going to rise a little bit. The Reserve Bank wants that, but that may slow inflationary pressures down a little bit. But there's still jobs out there if you're wanting them." – Michael Yardney "The message here is most of the critics actually sit on the sidelines. They're not in the arena, they don't try." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

For years, the dream of homeownership has seemed increasingly out of reach for many. But what of those who can't even afford to rent Social Housing? Waiting lists are overflowing and the number of available dwellings just needs to catch up. Today Nicola McDougall, chair of the Property Investment Professionals of Australia (PIPA) joins me and passionately advocates for a fair and more effective approach to social housing. You see, despite the government raking in billions of dollars from property taxes each year, our social housing stock has remained stagnant, and the number of people in desperate need of housing continues to rise. Now, I'm not talking about affordable housing. We'll explain the differences, but unfortunately, private investors are often being blamed for this crisis. That's not the case. Nicola will help unpack the reasons behind the housing shortfall, discuss some of the impacts of government policies, and we're going to explore what needs to be done to provide adequate housing for all Australians. Understanding Social Housing and Private Investment in Australia In today's conversation with Nicola McDougall, we dive into the intricacies of Australia's social housing crisis and its impact on private investors. We discuss statistics, government policies, and strategic investment opportunities in a challenging market. ● The differences between social housing (government-provided for the most vulnerable) and affordable housing (making renting and purchasing more accessible) ● 175,000 households on social housing waiting lists, stagnant social housing stock despite 33% population growth ● Decline in social housing stock in New South Wales, Victoria, Queensland, and Western Australia ● The role of private investors in providing rental housing ● Critique of government policies, including ineffective housing initiatives and the financial burdens placed on private investors o Anti-investor legislation, such as increased property taxes and rental reforms, and their exacerbating effects on the housing crisis ● Potential government incentives to encourage private investment in rental housing, including adjustments to capital gains tax ● Challenges faced by highly leveraged property investors in a high-interest-rate environment ● Opportunities in Melbourne's low vacancy rates and skyrocketing rents ● Importance of portfolio diversification across different states and working with wealth strategists to outperform the market ● Hidden taxes in the New South Wales budget, such as the shift of emergency service levies from insurance companies to property owners Whether you're a seasoned property investor or you're just concerned about Australia's housing future, this episode offers valuable perspectives and actionable advice. Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports – www.PodcastBonus.com.au Some of our favorite quotes from the show: "Anyway, it's the government's job to help the disenfranchised people in Australia, and in general, it's not their fault, so this is not a judge of people." -- Michael Yardney "Clearly, the government has no idea what it costs to construct high-rise dwellings. And if they do offer discounted rents to essential workers, and I'm not against the idea, I'm just saying the numbers don't work – where's the profit going to come from?"-- Michael Yardney "But here's the problem. Oftentimes, exploiting your own innate abilities requires an enormous investment of your time before the investment begins to pay dividends. And because the investment doesn't produce immediate rewards for many people, it ends up being a problem."-- 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

Today, I look into an issue that's causing ripples across the Victorian rental market and beyond. It's the exodus of landlords. Joining me today is Mike Mortlock, Managing Director of MCG Quantity Surveyors, who recently wrote a detailed report about this. Not surprisingly, the problem isn't just confined to Victoria. In general, many property investors are getting nervous and they're selling up. I also plan to ask him about another issue that could blow up and isn't just confined to Victoria. That's the fact that many are underinsured. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Mike Mortlock – MCG Quantity Surveyors Get a bundle of eBooks and reports = www.PodcastBonus.com.au Shownotes plus more here: Property Investors are Fleeing the Melbourne Market, with Mike Mortlock

On today's episode, Dr. Nicola Powell, the Chief of Research and Economics at Domain, and I want to discuss her latest Domain House Price Forecast Report, and I ask her to share her property forecasts for the financial year 2025. We'll delve into the key findings of the report, explore regional variations in house prices, and discuss the economic factors influencing the market. We'll also cover the impact of interest rates, government policies, and supply and demand dynamics on the housing sector. I'm sure you'll find this episode packed with valuable insights you won't want to miss, so let's get on with the show. Australia's Property Market: Growth Predictions and Policy Impacts Together, Nicola and I discuss various aspects influencing the market, including forecasts, policy impacts, and strategic investment opportunities. Take a look at some key highlights from our conversation. ● The latest Domain House Price Forecast Report and the expected trends in house prices across Australia ○ Prices will continue to rise ○ However, the pace of price growth should slow from previous levels ● The importance of sustainable growth rates to avoid market volatility and downturns ● Regional differences, including Perth's expected growth ○ The performance of regional markets in Queensland, New South Wales, and Victoria ● The impact of housing policies on affordability trends ○ The historical influence of government shifts on property values ● The challenges in meeting the government's target of 1.2 million new homes ○ The shortage of skilled tradespeople ● Migration caps and workforce shortages and their implications for the housing market ● The influence of APRA's 3% interest rate buffer on serviceability and the housing market ● Melbourne's potential for growth due to increased immigration and opportunities for buying below intrinsic value Our conversation emphasizes the importance of strategic decisions and optimism in achieving financial success in real estate, which will be helpful to listeners no matter whether you're new to property or a seasoned investor. Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Dr Nicola Powell, Domain's Chief of Research and Economics Domain's Home Price Report Get a bundle of eBooks and reports – www.PodcastBonus.com.au Some of our favourite quotes from the show: "Obviously, during COVID, regional Australia shot up. Property values grew. That was partly because people moved there. But I think one of the things people missed was also people not moving out of regional Australia." – Michael Yardney "I think I was lucky. I've learned not to try and time the market but just manage my cash flows." –Michael Yardney "So, if you're a pessimist, you're literally sabotaging your life. You're pushing the very people you need away, and you're left with no choice but to rely on yourself." – 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

Today we're going to dive into the world of wealth creation and breaking the cycle of poverty. Joining me is Tom Corley, who's dedicated his career to understanding the behaviours that separate the rich and the poor. According to Tom's research, only 4% of people born into poverty become rich. Now, that's a shocking statistic. Why is it so hard to break free? What are those habits holding people back and, most importantly, what can be changed? Tom's going to answer those questions, and we're going to discuss the habits and mindsets that contribute to poverty, the role of knowledge and mentorship, and how to overcome the limiting beliefs that keep people stuck. No matter where you are on your wealth journey, I'm sure my chat with Tom will be of benefit to you. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Tom Corley's blog Get your copy of Rich Habits, Poor Habits here- www.RichHabitsPoorHabits.com Shownotes plus more here: Only 4% of poor people become rich, why is it so hard? With Tom Corley