Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

Australia's rental market is in crisis. Vacancy rates are at virtually all-time lows, rental stock remains slim, and rents are skyrocketing. So how did we get into this rental crisis? And how long will it last? And what does it mean for property investors? In today's chat, Dr. Andrew Wilson and I shed light on the causes, implications, and potential solutions to Australia's rental crisis. Links and Resources: Michael Yardney Dr. Andrew Wilson, Chief Economist My Housing Market 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 Shownotes plus more here: Why Australia's rental crisis isn't going anywhere, Plus Dr. Andrew Wilson's solution

For more than a year the Reserve Bank hiked interest rates to the highest level in decades and there were lots of warnings about an imminent collapse of the Australian housing market. And these warnings came from banks and institutional economists as well as the usual property pessimists! Not many people expected interest rates to rise so high and so fast, and not many people expected the most interest rate-sensitive portion of the economy, our housing markets, to be so resilient. Today, financial advisor Stuart Wemyss and I discuss the reasons why many predictions were way off, highlighting the role of market dynamics and interest rates. We discuss the challenges of predicting the market bottom and explore the cognitive biases that could cloud judgment. Learn about how the housing bears got it so wrong and whose advice should you be listening to as you plan for what's ahead in the property market. How Did Economists Get Their Property Predictions So Wrong? In my chat with Stuart, we look into: ● Factors to consider when reading forecasts o The psychology of homeowners o What's happening on the ground ● The inaccuracies in Australian housing market forecasts by economists and banks ● The potential dangers of blindly believing in market 'experts' ● The financial stress endured by homeowners and the significant role of market dynamics and interest rates ● The change in bank forecasts and reasons behind the shift ● The challenge of predicting the market bottom in long-term property investments ● The impact of cognitive biases on decision-making in property investment ● Importance of an evidence-based approach focusing on long-term investment and compounding capital growth ● Emphasis on strategy over luck in successful property investment We emphasize the importance of an evidence-based approach in property investment. We highlight the role of strategy over luck, and the need to learn from failures rather than shying away from them. Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart's Book – 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 Some of our favorite quotes from the show: "I think the other thing they missed was the supply and demand ratio. In other words, we went into this cycle with an undersupply of properties." – Michael Yardney "Rather than look for what's going to work now or in the next year or two, look for what's always worked and what's likely to be in continuous strong demand in the future." – Michael Yardney "So, the best way to reflect on your failure is to focus on the lessons that you've learned and the person you're going to become, rather than spending time trying to avoid failure." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We know inflation is coming under control, but it's happening much more slowly than the Reserve Bank would like. And part of the reason for this is that it's fighting an uphill battle with demographics according to leading demographer Simon Kuestenmacher. Today I'm going to chat with Simon and ask him to shed light on the Reserve Bank's challenge and more importantly, what it means for all of us. Listen as Simon unravels the intricacies of economics, demographics, and inflation, providing a fresh understanding of these complex topics. From the impact of Millennials and Baby Boomers on Australia's economy to the effects of interest rates on business decisions, this conversation is a deep dive into economic trends and their implications for different sectors of society. Demographer Simon Kuestenmacher on Economics, Inflation and the Power of Demographics During my chat with Simon, we explore the challenges faced by the Reserve Bank in controlling inflation and promoting full employment, the influence of Millennials and Baby Boomers on Australia's economy, and the impact of demographic trends on economic strategies. ● A detailed look into the Reserve Bank's mission to control inflation and stimulate full employment. o The tools the RBA has to carry out its goals. ● How Millennials and Baby Boomers are triggering an unprecedented spending surge. ● The difficulties the Reserve Bank faces due to demographic trends and high consumer spending. ● The RBA's role in innovation o How lowering interest rates can incentivize businesses to invest in automation. ● How a stable and predictable economic climate can attract global wealth. ● Examination of the shocking inflation rate in Argentina and the challenges businesses face in such a scenario. Whether you are a homeowner, investor, or simply interested in Australia's economic dynamics, a fresh understanding of the intricacies of how demographic trends are impacting the strategies of the Reserve Bank and affecting various sectors of the economy may change your perspective on economics. 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 Simon Kuestenmacher - Director of The Demographics Group Some of our favorite quotes from the show: "When there's a level of stability and people have more certainty I think it's going to be positive for businesses." – Michael Yardney "With ultra high inflation what you do is when you go to the shops you buy your coffees for the day. You don't want to buy one in the morning because in the afternoon, the coffee's going to cost more at the restaurant." – Michael Yardney "When you come up against a problem, to turn off the negativity bias in your brain, say to yourself: hey, it's just a problem, it's a problem I need to solve." – 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 tackle a question that's been looming large in many conversations – should we be fearful or greedy about entering the Australian property market right now? With the property market showing signs of both opportunities and risks, it's a challenging landscape to navigate for both seasoned investors and newcomers. These contradictory sentiments arise due to several key factors – market fluctuations, interest rate considerations, legislative changes, socio-economic conditions, and many more. The balance between fear and greed can be a fine line to walk, and understanding the current property climate is vital in making informed decisions. If you're a regular listener to the show you'll know I usually have guests on, but today it's going to be just me and you as I share my thoughts and help you interpret current market indicators, and spotting potential opportunities amidst the perceived chaos. Whether you're an experienced investor, a first-time buyer, or merely an observer of the Australian property market, I hope to provide a balanced perspective and some useful insights that could guide your decision-making process. Is it time for fear or greed? Amongst the topics discussed today: ● I reflect on historical events like the 1993 recession and Black Monday of 1987 ● Similarities between today's market and the market 30 years ago ● What's caused the rise in property values o Why the same factors won't work going forward ● Insights on homeownership and economic growth in Australia o The wealth of the average Australian and where that wealth can be found ● Reasons not to be fearful or overly concerned ● Analysis of the property shortage and population growth o How supply and demand is impacting property prices ● In-depth examination of the long-term growth of the Australian property market ● Discussion on the impact of urbanization, demographic changes, population growth, and wealth on the market ● The continuing rise in property value in our capital cities ● Reflection on trends in densification and community connection 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 Get a bundle of eBooks and reports – www.PodcastBonus.com.au Some of our favorite quotes from the show: "The current environment, today's environment, reminds me of those times 30 years ago." – Michael Yardney "We've passed the peak of inflation, but it's not going to get into that two or three percent band for some time." – Michael Yardney "I'm a long-term investor and I still see strong underlying fundamentals for our property markets." –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 question-and-answer episode, I chat with Ken Raiss, director of Metropole Wealth Advisory, who shares his knowledge of property and wealth management. We're going to discuss three of your questions about how to help your children into property, including questions about how to stop your children from squandering their inheritance and what happens to your superannuation when you die. Even if you don't have children yet, I think you're going to benefit from some of the pearls of wisdom Ken drops. Q&A Day with Ken Raiss Question: We are in the fortunate position to have paid off our home and have a number of investment properties, but now our children having difficulty getting into the property market, in part because it's hard for them to save a sufficient deposit to buy the type of home they're wanting. What's the best way of helping our children into property? There are three major strategies to achieve the desired outcome of helping your children into property. A deposit gift – Some parents are gifting their adult children enough funds to cover a part or all of the deposit to buy a property and then their children remain responsible for the bank loan. The property in these circumstances is owned by the child and is subject to all the normal issues with asset protection. Some clients support their children by guaranteeing a higher loan and so do not actually pass over any funds. i. However, they must be very careful as in the event of a default you would be liable for the full loan and could lose any security you may have given, such as your family home. ii. Parents should try to limit any guarantee to the minimum amount required and when the property grows in value sufficiently arrange for a refinance so that they can be removed as guarantors. Buying for a minor – Another strategy is purchasing a property for a minor in their name with the proper notations on the title. Parents will be the child's legal personal representative and will have the responsibility of managing the property. i. When the minor becomes an adult, parents will need to take a copy of the birth certificate and evidence that the child is still alive to the relevant government department, which will then make the necessary title changes. ii. There will be no stamp duty or capital gains tax on this title change. Using a trust – In this strategy, a family trust is used to purchase the property and parents are then the trustee of the trust. When the time is right, parents can pass control of the trust over to their adult child. With the correct advice when setting up the trust structure and a company as a trustee, there will be no capital gains tax or stamp duty payable. Question: We have a son and a daughter. We're both in our 70s and have some rental properties. We're afraid our daughter might sell one of the two rental properties she would inherit. Is there some way of preventing that from happening that we can include in our will so that she can continue earning rental income for the rest of her life? Also, we didn't understand the testamentary trusts and three tranches that you wrote about. Would you please explain these? ● One possibility would be to establish in the will that assets, properties, shares, cash, or whatever go to a testamentary trust for any children. o A solicitor would probably suggest one for each child. o The trust may say that the kids simply get the income from the assets distributed to them. Alternatively, the three tranches are an option. ● For a family or individual with good assets, a testamentary trust may make a lot of sense, or it may not. Seeking the advice of a good solicitor should be the first step. Question: What happens to my super when I die? ● The standard answer is what they call a binding death nomination that specifies that 100% will be left to the surviving spouse, or 50% to the spouse, and 50% to the children, or whatever other solution is preferred. o But in industry or retail funds, the will needs to be updated every three years. If that doesn't happen, it becomes nonbinding. ▪ Nonbinding means the trustees of those super funds have some input to maybe do something differently. ● The other issue is that people who have got a larger super balance need to be more careful, because, on the death of one spouse, it may not be allowed to be fully transferred to the surviving spouse. o The maximum caps at 1.7 million at the moment, but that goes up with inflation over time. o In this situation, people need something more robust to say how much is going to go directly to a surviving spouse and how much will come out. Links and Resources: Ken Raiss, director of Metropole Wealth Advisory Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here In turbulent times like we're experiencing why not get the team at Metropole on your side to give you holistic property and wealth advice– find out more here Why not get your bundle of E-books and resources as my gift for subscribing to this podcast www.PodcastBonus.com.au Some of our favorite quotes from the show: "Only last week I was looking up something, doing some research, and I found the latest statistics in Australia suggested 50% of first marriages now divorce." – Michael Yardney "For many Australians, most Australians their superannuation is going to be, after their home, probably their biggest asset." – Michael Yardney "I think the important note is that your super isn't automatically included in your will because it's not your asset and unless you give certain instructions to your super fund trustee, it may not end up where you want it to be." – 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

Negotiation is one of the skills developed by all savvy property investors. Over the years I've noticed that some people are very good at getting terrific deals. Most others simply get what the other party is willing to give. What's the difference? The first group knows how to negotiate. In today's episode, I sit down with Jackson Milan, an expert in the art of negotiation in a conversation for his podcast. We discuss the vital role negotiation plays in various aspects of life and how mastering it can significantly enhance your life's quality. Drawing on my five decades of business and investment experience, we delve into the importance of effective communication, establishing rapport, and ethically influencing others. We also discuss the impact of timing on sales and investments, and how understanding market conditions can shape negotiation outcomes. Lastly, we reflect on valuable insights I've gained from my mentor, Jim Rowan, about life's predictable patterns of change, and the power of attitude and choices. Tune in to learn about negotiation strategies that can give you an upper hand and hear our perspective on the property market. Navigating Negotiation Strategies for a Better Life with Jackson Milan Life is one big bargaining event, and if you become a very good negotiator it makes a difference in the quality of your life If you are a poor negotiator, you'll spend a fortune. If you are a good negotiator, you'll save a fortune. If you are a great negotiator, you'll make a fortune. But as I started to write my latest book on negotiation, I realized that to be successful in life today you need to be more than just a good negotiator. In this podcast episode, you'll hear me being interviewed by Jackson Milan, a veteran investor with five decades of experience, on the art of negotiation. We'll discuss its role in amplifying quality of life and the profound impact of negotiation skills on various aspects of life, especially in the realms of business and investments. ● The cornerstones of Michael's success in life and business ● How access to information has changed over the years ● Importance of negotiation skills in life and business ● Who really needs to develop negotiation skills ● An alternative to the "meet-in-the-middle" approach ● Understanding the power of negotiation and influence so as not to be taken advantage of o How culture plays into that ● The things that can give you more power in a negotiation o If you're not in a hurry, you've got the upper hand o The more information you have, the more power you have o Having alternative options gives you more power ● Valuable rules to understand in negotiation o Everything is negotiable o Know what you want before going in – plan your negotiations o Don't get emotionally invested ● Whether a quick sale is a good sale ● Getting the best asset as opposed to the cheapest asset ● The story of Michael's first investment property ● The importance of delayed gratification, education, and having a good team around you as you plan for the future. Links and Resources: Michael Yardney Jackson Millan - The Wealth Mentor – Aureus Financial Jackson Millan's Podcast 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: "Life is one big bargaining event, whether you become a good negotiator or not. And if you do, it actually does make a difference to the quality of your life." – Michael Yardney "Because in negotiation, I guess, like in life, if you don't have a plan of your own, you're going to be part of somebody else's plan." – Michael Yardney "It's hard to make money out of real estate in the short term, but it's a fantastic way of growing assets over the long term." – 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 Podcast, I've got two great segments for you. Initially, I'll explain how a fascinating part of our brain: the reticular activating system, operates as both a search engine and a GPS, guiding us towards wealth. Then, I'll have a conversation with a guest who has been called Australia's best-kept money secret, Jacquie Clarke. She's here to discuss her new book, 'Stop worrying about money.' Links and Resources: Michael Yardney Jacqui Clarke – Stop worrying about money 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: Stop worrying about Money PLUS understand how your R.A.S can help you get rich

In today's podcast episode, we delve into the complex world of money well-being with financial guru, Manisha Thakur. Manisha shares her personal journey of overcoming the 'never enough' mindset and explores the psychological aspects of money. We discuss the societal pressures that equate happiness to more money and possessions, and how this can lead to work addiction and a warped sense of self-worth. Manisha's insights extend beyond money, touching on aspects of work, success, and self-worth. Drawing from her book, "Money- Zen -The Secrets of Finding Enough", she provides strategies to redefine our idea of achievement. Our chat today emphasizes the importance of financial health as a foundation for emotional wealth and explores how love, health, learning, and contribution form the bedrock of true wealth. Join us as we debunk myths, bust stereotypes, and redefine financial success with Manisha Thakur. 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 Join us at Metropole Brisbane Charity Ball to support Hummingbird House - click here for reserve your spot Get your bundle of eBooks and reports at www.PodcastBonus.com.au Manisha Thakour's new book – Money Zen – the secret to finding your "Enough." Shownotes plus more here: The secret to finding "Your Enough" with financial well-being guru Manisha Thakor

In today's Big Picture' episode with Pete Wargent we take an in-depth look at the complexities of Australia's housing market, economic trends, the impact of generational wealth transfer, and the ripple effects of various factors on the country's economy. Whether you're an investor, a homeowner, or just a curious mind, this monthly deep-dive promises to keep you informed and ahead of the curve. Big Picture Podcast with Pete Wargent Today we scrutinize the Labor Party's ambitious project to build 1.2 million homes and the myriad challenges this initiative faces, such as a shortage of skilled labor and building materials. The Labor Party's aim to build 1.2 million homes in Australia. o There are potential challenges such as skilled labor shortage and material scarcity. ● The impact of peak dwelling completion and the issues arising from poorly constructed units. ● The ripple effects of employment, inflation, and fluctuating interest rates on Australia's economy ● Predictions from leading economists and the recalibration of property value and interest rate forecasts by our major banks o Most forecasts now suggest that interest rates will not rise further o After months of property prices rising, banks have finally updated their forecasts ● The significant generational wealth transfer from the baby boomers to younger generations o The wealth amassed by the baby boomer generation, primarily in residential real estate, and how to effectively pass this wealth onto future generations o The implications of baby boomer parents assisting their children in accommodation on Australia's property markets and wealth inequality o Instilling good financial habits in children, drawing a strong association between work and earning, and emphasizing the importance of structuring wealth transfer to avoid future complications. 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 Some of our favorite quotes from the show: "If we've got all these people, what about the schools? What about the hospitals? What about the aged care? Lots of issues." – Michael Yardney "There's been five, six months of rising property prices and now all the banks are suggesting that values will keep increasing for a couple of years." – Michael Yardney "If you don't fail, you'll never reach the level of success that you're capable of attaining." – 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 episode, I chat with Assistant Commissioner Tim Loh as he demystifies the tax obligations of property investors in Australia. Lowe discusses the nuances of a $9 billion revenue deficit, three key areas to monitor when filing tax returns, and the importance of keeping thorough records. He explains rental property taxes and deductions, and the ATO's mission to maintain a level playing field for all rental property investors. We'll also delve into capital gains tax, the importance of a certificate of residency for foreign investors, and key insights from the property market. An In-Depth Discussion with Assistant Tax Commissioner Tim Loh Tim Loh and I discuss the common pitfalls investors encounter, the importance of keeping accurate records, and the ATO's approach to maintaining a level playing field in the rental property market. ● Overview of the Australian Taxation Office's focus on rental properties ● What the ATO is focusing on this year ● The estimated $9 billion revenue deficit the ATO is trying to recoup ● The three key areas to monitor when filing tax returns o Incorrect reporting of rental income and taxes ▪ The importance of keeping clear records o Reporting interest expenses o Distinguishing between repair and maintenance versus capital expenses ● The difference between a holiday home and a rental property ● How the ATO obtains data from third-party providers ● Importance of obtaining a certificate of residency for foreign investors ● Impact of capital gains tax on property sales ● The importance of consulting a financial advisor when considering property sales ● Tips and resources to help investors find more information or answer questions This episode is a goldmine of information for property investors, with expert insights into the complexities of taxation. The conversation highlights the critical role that thorough record-keeping plays in avoiding tax issues, and the measures the ATO takes to ensure fairness in the property market. Whether you're a seasoned investor or just starting out, this episode provides valuable guidance to navigate the tax landscape successfully. It underscores the importance of being well-informed and prepared when it comes to your tax obligations as a property investor. 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 Get a bundle of eBooks and reports = www.PodcastBonus.com.au ATO Resources: ● Tax time toolkit for investors: ato.gov.au/Investorstoolkit ● Rental properties guide: ato.gov.au/rentalsguide ● Guide to depreciating assets: ato.gov.au/CGTdepreciatingassetguide ● Rental video series: ato.gov.au/Rentalvideos ● Videos on how to complete CGT in myTax: CGTvideos Some of our favorite quotes from the show: "90% of people filling out their tax returns make errors." – Tim Loh "Let's make it clear at the beginning, that if you take a loan for an investment purpose and then, all of a sudden, you taint it with personal expenses, that makes it very difficult, very confusing, to apportion the tax expenses." – Michael Yardney "I think one of the things we really should understand is the tax man knows what's going on. Don't think they won't notice these things." – 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