Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

If you've been listening to my podcasts or reading my blogs, you'll know I have a number of rules and frameworks to help my property investing. By having these it takes the emotion out of investing and makes the results more predictable, but what's the most important golden rule of property investing? That's a question I'm going to ask today of leading financial advisor Stuart Weymss, who's written a book about the golden rules of investing so let's see which rules have stood the test of time. The Golden Rules of Property Investing What's the most important factor in your property investment success? Well according to leading independent financial advisor Stuart Wemyss the most important rule is the quality of your assets. But what does this really mean and can really be as simple as that? So, let's start with the obvious question - what does quality mean? Quality really means that a property will benefit from excessive demand. What investment-grade means The Supply-demand equation Limited supply Demand is diversified Look for properties that attract buyers that can and are prepared to pay more because of their higher incomes. Factors that drive demand. Amenities. This includes necessities such as supermarkets, family doctors, dentists, etc. Equally important are entertainment amenities including cafes and restaurants, entertainment venues, parkland including running and bike tracks, and so on. Proximity to employment opportunities. There will always be substantially better employment opportunities in large capital cities for most industries. Schools. This can include sort after public school zones as well as desirable private schools. Proximity to schools can contribute a lot towards capital growth. Culture/community. It's a positive attribute for a location to have a good community vibe/feel. This is often present in local shopping strips and the mixture of businesses adds a lot to this attribute. Some inner suburbs lack this and it's to their detriment. Healthcare. Proximity to hospitals is important to some buyers, particularly older folk. Transpor This includes good public transport easily within walking distance as well as major arterial roads. Neighborhood Well also discuss playing the long game. Short term profit does not create long term value Three reasons short-term opportunities are inferior Risk-based returns Compounding capital growth Taxes 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 Shownotes plus more here: Is this the most important Golden Rule of property investing? With Stuart Wemyss Some of our favorite quotes from the show: "Of the properties on the market at the moment, in my mind, there's probably less than 5% that I would class as investment-grade." – Michael Yardney "Even when you buy a home, for most people it's not their final home. It's not their forever home, so they should still think like an investor." – Michael Yardney "Enjoy the journey, because if you don't enjoy the journey, you're not going to appreciate the destination when you get 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

Today's podcast will be a little different. Today I'm going to be brutal. I'm not holding back and I'm going to tell you some brutal truths about property investing You'll learn some of the things that can go wrong. You'll learn about the frustrations of being a property investor. You will learn some of the ways in which slick marketing can lead you astray. But stick with me. It's not all negative. Understanding what could go wrong is one way of making sure things don't go wrong and you can enjoy the success a small group of property investors enjoy. The problem is most people who get involved in property investment don't develop the financial freedom they're after. 50% of new investors sell up in the first 5 years Most investors never get past their 1st or second property Only 20,000 Australians own 6 properties or more. Now, this is not the type of information most people tell you about property when you first get started. That's probably because many of the people you speak with are trying to sell you something – sometimes it's a property – in other cases it's their services (buyers' agents). This episode is my attempt to redress that balance a little bit and share some brutal truths about property that you don't often come across. Despite what some people will tell you, property investment isn't easy. But it's simple. Now that isn't a play on words. What I'm trying to say is that if you do what most property investors do, you'll get the same results as most property investors get — and that's not pretty. You'll be heading in the right direction if you understand the following truths about real estate investing. Sorry, but... Property markets go through cycles. There are times every property cycle when values stagnate — sometimes for several years. And there are short periods when the value of your properties will fall a little. A-grade homes and investment-grade properties are less volatile – but property prices do fall at times, occasionally for several years in a row. You need a significant amount of money to invest You do need money to invest in property. If you don't have the financial discipline to save a deposit, you shouldn't be borrowing money to get involved in property. You can get rich over the long term, but it is not a get-rich-quick It takes the average investor 30 years to become financially independent through property Most investors waste the first ten years making mistakes and learning what not to do. The next few years are taken up selling underperforming assets and getting their financial house in order. Then it takes two or three good property cycles to become wealthy through property. Of course, you can shortcut this by getting the right mentors early in your journey. Saying "I'll be fearful when others are greedy, and I'll be greedy when others are fearful" is much easier than doing it. Most investors are overly optimistic during booms when they should be cautious and most pessimistic during downturns when they are surrounded by opportunities. No one really knows what the property market will do in the short term While in the long term our markets are driven by fundamentals, in the short-term human emotion and crowd psychology play havoc with the best-laid Real estate investment is a game of finance with some properties thrown in the middle Strategic property investors buy themselves time in the market by having financial buffers in place to see them through the ups and downs of the property cycle. Property investment is meant to be boring. Make your investing boring so the rest of your life can be exciting. There is more free property information available today than ever before, but much of it is useless Most market news is not only useless, but it is harmful to your financial health. Be careful who you listen to Rather than listen to the get-rich-quick stories, it's worth listening to those who talk about their mistakes and avoid the spruikers who don't — theirs are usually much bigger. There is virtually no accountability for the many property gurus and their hot spot predictions I find it interesting that people who have been wrong about everything for years still draw large crowds of followers looking for the next get rich quick scheme. The more "comfortable" an investment feels, the more likely you are to be taken by marketers or salespeople Avoid rental guarantees or promises of certain returns. Despite what most would like to think the biggest difference between ultra-successful property investors and the rest is not their property strategy or their investment "secrets." It's the way they think — their "mindset" and their Rich Habits. If you have credit card debt and are thinking about investing — stop Become financially fluent before you start investing otherwise the significant debt, you'll take on buying property will most likely overwhelm you. Residential real estate is a high growth, relatively low yield investment, so don't buy real estate for cash flow Of course, cash flow is important to keep you in the game, but it's capital growth that will get you out of the rat race. There are 3 stages of your property investment journey You first go through the asset accumulation stage which requires leverage and owning high growth properties; then you slowly reduce your loan to value ratio; until you can eventually live off your "cash machine" of properties. However many properties you think you'll need to provide cash flow for your retirement, double it Now you're closer to reality. 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 Collect your bonus ebooks and reports here: www.PodcastBonus.com.au Shownotes plus more here: The Brutal Truths about property investment that no one else will tell you Some of our favorite quotes from the show: "If you're looking for excitement, go bungee jumping. Go trail bike riding." –Michael Yardney "Despite what the average person believes, though, debt is good. As long as it is used to buy appreciating assets." –Michael Yardney "The very fact that you exist means you're lucky." –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

Do you want to be a successful property investor? Is so, you'll have to do things differently than most investors. One way to do that is to treat it like a business. Today, I'll be discussing this concept in detail with Australia's leading property tax accountant Ken Raiss, director of Metropole Wealth Advisory. I'm sure you'll find his take on things will be a little different, but you'll get some great insights to help you move your property investing up a level. Build Your Property Investment Business Property investors start their journey with good intentions great enthusiasm, but unfortunately, 92% don't manage to get past the stage of ever owning one or two investment properties. And less than 1% of investors build a portfolio of six or more properties. So, where did they go wrong? But in most cases, the root of their problem lies in their strategy – or rather the lack of one. It never fails to amaze me how many people go into property investing without any sort of strategy, let alone one that is specifically crafted to match their personal criteria, goals, time frame, budget and risk profile. It's like starting a new business without a business plan – and without any idea of what you want to sell, or how. And if you think about it, property investing is a business decision. So, how do you treat your properties like a business? Every property that doesn't fit your overall strategy will be the wrong choice.It's critical to get some expert guidance when developing your strategy to ensure you consider all the important factors relevant to your current position and long-term wealth creation and lifestyle goals. What does it mean to treat property as a business? All too often people are led into a false sense of security that a residential property in Australia will grow in value But less than 5% of properties are investment grade. You must also consider the money you use both from savings and borrowings. In today's market, you will need to spend $300k even on a less desirable investment and much more for an investment-grade That level of spending should require an understanding of the economic and market dynamics, a capability to identify the gems, and an ability to negotiate professionally. Most sellers go through a real estate agent who is trained and practiced at this and performs these functions daily. It is not a level playing field. You need to tip the scales back in your favor by seeking professional help. Buying the right property then gives you the best chance to maximize future capital growth which leads to improved rentals, equity to use for future purchases, and as part of an exit strategy to maximize capital gains. As a business, you need to consider future and current use, funding, potential to manufacture equity (as opposed to just waiting for the market), buying structure, impact on future lifestyle, and intergenerational wealth transfer. This requires a more holistic approach where the various components of tax, structures asset protection estate planning, risk, and retirement must be all taken into account under one central umbrella. Why is asset protection so important? Asset protection needs to be considered under three circumstances You work in a litigious profession such as a surgeon You find yourself in a management role where you take on responsibilities for employees where issues such as occupational, health, and safety concerns are part of your responsibilities. When you are wanting to wind down and live off the fruits of your hard work you do not want an unfortunate accident to wipe out your wealth through litigation. As a property investor, your risk is higher than normal as your tenants can sue if they are injured through your carelessness. In the case of litigation, you risk the loss of all your assets which could include the family home. There are specific steps we should all take such as not being in a position to be sued and having adequate insurance, but we all know this is not always enough. Many people are advised to move these assets to a trust if they feel sufficiently concerned but this triggers CGT and stamp duty and for the family home the potential loss of the main residence exemption and land tax exemption. There are strategies to eliminate these taxes which we at MWA assist our clients with and that is to implement an Equity Transfer Trust. You can also purchase your assets in a more appropriate structure from the beginning. Links and Resources: Michael Yardney Ken Raiss- Director Metropole Wealth Advisory Get Ken Raiss to build you a Strategic Wealth Plan 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: Build a property investment business you can be proud of with Ken Raiss Some of our favourite quotes from the show: "If you don't ask your consultants the right questions, sometimes they won't be forthcoming." – Michael Yardney "A trust is really just a document, a piece of paper, with lots of clauses in it. And they're not all the same." – Michael Yardney "It's critical to buy your assets in the correct structure upfront." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

How steeply will house prices fall after this boom? Are townhouses good investments, what's ahead for Brisbane property? They are some of the questions we answer in today's Q&A podcast with Brett Warren. Question: Can real estate prices really keep rising considering where they are today? In the past, property values rose because interest rates dropped and prior to that one-income households became 2 income households, and we know financing became easier to obtain, but what will be the driver for future capital growth? That's a great question and the simple answer is yes property values can keep rising, but not everywhere and not to the same extent as they have over the last year. Now that I've given the spoiler alert let's dig into this more deeply so that you can understand my rationale behind those answers. Bank Predictions The Australian banks don't have a good track record in housing market forecasts. But if house prices fall by the amounts predicted this time around, that will make it the biggest housing downturn in modern history. The last time property took a downward turn was in 2018, when Australian house prices plunged by about 5 percent overall. Prices also fell 4.8 percent in 2011 after a period of post-global financial crisis rate rises from the Reserve Bank. Those falls pale in comparison to what banks now predict. They are quite remarkable forecasts. Why would house prices fall? Currently, Reserve Bank interest rates are low to bolster the economy and stimulate inflation and wages growth. Once the Reserve Bank believes inflation is comfortably and consistently within its desired band of 2 -3% and unemployment is low enough to cause significant wages growth, then the RBA will slowly raise its interest rates from stimulatory levels to neutral levels. Of course, there is some conjecture as to how high a neutral interest rate is, but considering the general level of Australian household debt, it is unlikely to require a big rise in rates. There is no reason for the Reserve Bank to raise rates sufficiently high to create a recession or a housing market crash. Moving forward some areas will strongly outperform others If social distancing and the Covid-19 environment have taught us anything, it has taught us the importance of the neighbourhood we live in. If you can leave your home and be within walking distance of, or a short trip to, a great shopping strip, your favourite coffee shop, amenities, the beach, a great park, the recently implemented coronavirus restrictions might seem a little more palatable than if you had none of that on your doorstep. That's why choosing the right neighbourhood is important for property investors. Question: Thanks for your podcast, I now understand the importance of selecting the right location to do the heavy lifting as you frequently mention, but I can't really afford a home in investment-grade suburbs of our capital cities. Rather than apartments, what do you think of townhouses as an investment? It's important to understand why we recommend buying investment-grade properties rather than affordable properties, and as you've hinted in your question a lot of this has to do with buying in the right location. The more affluent locations are likely to be less affected by external influences than the non-blue chip areas. So, one question you need to ask when buying an investment property is will there be ongoing demand from both owner-occupiers and tenants to live in this area despite what might happen to the world economy, the local economy, or local market conditions? You should also ask yourself the question are people living in this location going to be earning more income than average, having higher increases in their income than average, and will they be able to pay more to buy or rent in these locations? With houses becoming more unaffordable for many families, I see townhouses becoming more popular, particularly for millennials who no longer want to live in apartments but can't afford homes in the more established suburbs of our capital cities. Townhouses typically provide the size and privacy of a home, as well as outdoor space but on a compact block of land and being 2 stories, they utilize verticality to retain internal sizes. Because they are in smaller blocks of land, they are usually cheaper than single-family houses. I've seen some very large complexes of townhouses built on very small blocks of land in some of the outer suburbs – I don't see those making good investments. As always, the other investment criteria regarding investment-grade locations must be adhered to. Question: I was considering employing an advisor agent to help with my next investment property because he said he specializes in buying off-market properties. Can you really buy off-market properties? And is one really able to get them for well under the market value? Understand the difference between off-market and pre-market We buy these a lot at metropole - but vendors are very informed and are unlikely to sell below market value If someone can get you a "bargain" property well below the market value, there's something wrong and that should raise red flags as a buyer. .. We believe 99% of properties in a blue-chip market sell for 5-10% above market value and even more in these boom times. Links and Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists 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: Can property prices really keep rising – Q&A Day, with Brett Warren Some of our favourite quotes from the show: "Property prices are notoriously difficult to forecast in the short term because there's so many factors involved." Michael Yardney "I definitely see townhouses becoming more popular, especially for millennials, who no longer want to live in apartments, but can't afford a home in more established areas." Michael Yardney "If someone says you can get a bargain well below market value in today's informed marketplace because sellers are informed, that would raise real red flags with me." Brett Warren 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

Boy, there's a lot going on in the world right now isn't there? Overseas there are all the geopolitical issues, and back home there are our own political issues plus concerns about wages growth, inflation, and the economy. Of course, Australia's economy and our property markets don't operate in isolation, and that's why each month I take time out to have a look at the big picture, the macroeconomic factors affecting not just Australia's economy, but the world economy, to help us understand what's ahead for us, and I do this once a month in these Big Picture Podcasts with Pete Wargent. There has been a lot happening since I last spoke with Pete, so I'm sure you'll get a lot out of the show. Russia / Ukraine A lot of the world has been imposing sanctions on Russia, which will greatly impact the Russian economy. There is currently a huge humanitarian crisis. The world is seeing increased fuel and gas prices. Australia will probably reduce its dependence on Russian fossil fuels. Inflation will probably stick around longer because of this conflict. Monetary policy will become more complicated worldwide. We are likely to see more spending on defence. Brisbane Floods There has been some recent dramatic flooding in Brisbane, and while in the medium term our focus must be on the safety and rebuilding of Queensland, we also must consider the long-term effect of this flooding. The initial focus will be on clean up. Next will be repairs and insurance claims. In the five years after the 2011 floods, house prices in Brisbane increased by about 25% History suggests that the housing market will snap back quickly. Australia's Great Resignation? Information from the NAB Survey: While around 1 in 5 working Australians actually did change jobs in the past year, when asked about their plans to do so, almost 1 in 4 (23%) said they were also considering leaving their current place of employment. A further 4 in 10 (41%) indicated they were not considering leaving their current jobs but were keeping up to date with potential job opportunities. Around 3 in 10 (31%) said they had no intention to change jobs and did not keep up with potential job opportunities. Just over 1 in 20 (6%) were unsure. A greater share of full-time workers are considering leaving their jobs over the next 12 months (24% vs. 18% of part-timers). By age, younger workers are more likely to be considering a change (28%), but a sizeable share of Australians aged 30-49 (23%) and 50-64 917%) are also considering doing so. Importantly, the survey also finds that many of the key reasons workers are contemplating leaving their jobs are "push" factors - a lack of personal fulfillment, purpose or meaning, lack of career growth, mental health, poor pay, and benefits. Many Australians who are considering changing jobs are also looking for a fresh start, with around 3 in 10 planning to move to a different or new role in a new industry. Wages data and Interest rate rises. As expected, the Reserve Bank Board decided to maintain the cash rate at 10 basis points. When is the Reserve Bank going to raise interest rates? How high will interest rates go this cycle? These are questions of speculation and concern to commentators, homeowners, and investors. Some commentators were pointing to the possibility of rate hikes as soon as this June. If the RBA raises interest rates this year this will further decelerate already slowing housing price growth. However, for the bank to raise the cash rate, it will need inflation 'sustainably' within the 2% to 3% range – a scenario that would require wages growth in the order of 3-4%. Although the latest inflation data was stronger than expected and underlying inflation is back within the RBA's target range, the board will be waiting for evidence that wages have turned a corner. What are neutral interest rates? Interest rates are currently at very low stimulatory rates, and at some point, the Reserve Bank is going to need to raise them, not to slow down the market, but to allow a comfortable level of inflation and wages growth to occur. How high these rates will go will determine whether the household sector will be able to service higher mortgage rates. Currently, Australians are wealthier than they ever have been, and many are months ahead in their mortgage repayments. The NAB CEO suggested that he can't see mortgage stress occurring with rate prices anytime soon. Wages and rents are going to increase Home loan activity up again over January Home loan activity continued to rise over January In fact, home lending increased by 44.2% over the ending of January 2022. Net arrivals positive for the first time since June 2021 There were only 245,000 short-term visitors to Australia in 2021, down from 9.5 million two years prior. But now things are beginning to look up for the country's tourism sector. Australia eased its international border on 15 December 2021 to the 235k visa holders currently outside Australia. It also opened travel bubbles with Japan and South Korea, which follows the existing bubble with Singapore. Travel is set to re-open to all fully vaccinated visa holders from 21 February 2022. Short-term visitors are now coming here, and in January the number of net overseas arrivals shifted into positive territory for the first time in six months. Skills shortages within highly skilled industries should ease as 2022 progresses, though not completely and not overnight. Shortages in agriculture, hospitality, and caregiving may persist for longer. 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 new Podcast Shownotes plus more here: Economic and property trends you must understand. The Big Picture with Pete Wargent Some of our favourite quotes from the show: "There's already a shortage of tradespeople, there's a shortage of builders, shortage of materials, and there's now all of a sudden going to be a huge extra requirement for all of those sorts of things." –Michael Yardney "What's been happening up to now is the Reserve Bank's been saying, "we're waiting for wages to go up." – Michael Yardney "I think one has to take into account in one's planning, but not be worried by these Armeggedon forecasts by the same people who thought the property market was going to crash in 2020." – 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

Last week I was shocked to read the headline "Property prices set to tumble 15% as Ukraine crisis bites." It seems like the media and many commentators are looking for an excuse, any excuse, to explain why our property markets are going to crash. But now AMP has come out suggesting the fallout from the Russian invasion of Ukraine could slow Australian residential property sales, increase inflationary pressure, and accelerate a downturn in prices of about 15%. And that's despite Australia's property markets generally performing well during major economic, military, and terrorist crises over the last 35 years. And these forecasts don't seem to take into consideration the strength of the Australian economy, the shortage of good housing in Australia which will be challenged by a flood of incoming migrants, and the resilience of our housing markets and the Australian banking system. Now what's happening on the other side of the world is horrific, and the humanitarian and economic impact will be tremendous and possibly long-lasting, but what will it mean for our local property markets? That's what I'm going to ask Dr. Andrew Wilson, Australia's leading housing economist and chief economist with My Housing Market in today's Property Insiders chat. What will the Ukraine Crisis do to our economy and property markets? Will a war overseas cause local housing values to crash? The biggest local threat from the Ukrainian crisis – outside escalating into a regional or nuclear war – is likely to be rising oil and energy prices increasing inflationary pressure and the prospect of higher interest rates. While the Ukraine war may slow our economic growth a little due to the negative impact on confidence, it's unlikely to drive Australia into a recession locally – so why should property values fall? Strongest lift in the economy since 1976 The Australian economy (as measured by gross domestic product or GDP) grew by 3.4 percent in the December quarter – the strongest gain since March quarter 1976. The strong growth followed a 1.9 percent contraction in the September quarter, reflecting lockdowns. The economy is up 4.2 percent on the year. The biggest contribution to the expansion of the economy was household spending (+3.2 percentage points), followed by inventories (+0.9pp). A raft of sectors each reduced growth by 0.1pp, including dwellings, commercial construction, private equipment, public investment, net exports, and ownership transfer costs. 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 Dr Andrew Wilson, Chief Economist My Housing Market Subscribe to our weekly Property Insiders videos – www.PropertyInsiders.info Get your bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Will the Ukraine crisis really cause property values to collapse, with Dr Andrew Wilson Some of our favourite quotes from the show: "At the moment, though, our economy is doing really well. We've had the strongest lift in our economy since 1976." – Michael Yardney "In fact, the quality of your property will make a big, big difference, and be the most important factor in the long-term returns and success of your investment." – Michael Yardney "Learning how to tolerate feeling lonely and finding ways to keep yourself company could help you get over fear of loneliness." – 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

With two months of data under our belt, the picture for property market is becoming clearer. Last year, property values increased almost everywhere, often by double digits. However, that's not how our property markets typically work or what you should expect of them this year. Moving forward, you can expect the Australian property market to be segmented, which is normal for Australia. And you'll see some segments that outperform the others strongly, some that have more moderate performance, some segments where values stagnate, and some segments where price values fall. That, as well as interest rates, is what you're going to hear in today's chat with Dr. Andrew Wilson. We discuss: When is the Reserve Bank going to raise interest rates? How high are interest rates going to go this cycle? What does the latest wages data tell us and what does that mean for interest rates? Wages Rise – But Still Well Below RBA Target Many commentators and economists brought forward their forecasts for the timing of the first RBA cash rate hike. Some were pointing to the possibility of rate hikes as soon as June this year. However, the latest wages data and a likely surge in workers indicate that reaching the RBA's benchmark of consistent wages growth above 3% per annum won't occur until next year. In fact, "real" annual wages (the difference between wages and inflation) fell by 0.3% over the year to the December quarter This is the first fall since March 2015 and second only to the record 0.5% fall recorded over September 2008 during the depths of the GFC. We're not there yet – we haven't reached a point where an interest rate hike makes sense. What's happening in our property markets? Our capital city housing markets have continued to report strong results The auction markets have commenced the season with higher clearance rates overall compared to the final months of 2021. Last year property values increased in almost every location around Australia – and that's very unusual. However, moving forward, the various property markets will be very segmented, which is a more "normal" property market. Despite strong buyer and seller activity, and strong auction clearance rates clearly still indicating a seller's market, property price growth over the month of February produced mixed results. Andrew Wilson's My Housing Market showed strong growth in asking prices for properties in Brisbane and Adelaide while house price growth in Sydney and Melbourne has moderated over February. While wages around Australia are much the same, the median house price in Sydney is double that of Brisbane and considerably more than the Melbourne a similar house would cost in Melbourne. Affordability is now constraining further price growth in more expensive capitals of Sydney and Melbourne as lending capacity has been maximized. The smaller capitals – particularly Brisbane and Adelaide continue to provide buyers with affordability advantages Housing market demand will continue to be supported by the imminent reintroduction of mass migration and rising confidence in a post-covid recovering economy and reinforced by a clear underlying shortage of housing. Investor activity will also continue to support housing markets, with surging rents enhancing yields and supporting total returns. The level of price growth will be determined by interest rates and income growth going forward which are likely to remain steady for the foreseeable future. The consolidation of affordability in housing markets over time in a normalized economic environment with low interest rates and steady income growth will result in flatter house price outcomes and a more predictable and sustainable housing market. 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 Dr. Andrew Wilson, Chief Economist My Housing Market Subscribe to our weekly Property Insiders videos – www.PropertyInsiders.info Get your bundle of free eBooks and reports – www.PodcastBonus.com.au Shownotes plus more here: Where is the property market heading? With Dr. Andrew Wilson Some of our favorite quotes from the show: "Even though wages have gone up a bit, most people recognize that it costs them more to live than their wages have gone up." Michael Yardney "It was a record month with lots of auctions in February, creating some records in the number of sales." Michael Yardney "What you have right now is enough to start." 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 reading a blog written by my good friend Tom Corley the other day and it was about success, and it made me think about success, what it means and how you achieve it. Now, if you're a regular listener to my podcast, you know we mainly talk about property, but if you think about it, property is just the vehicle you're using to achieve your own success - be it financial success or wealth or prosperity. The only person that can answer the question "what does success mean" is you. While I'm neither able nor willing to prescribe the ultimate definition of success, as this is not possible, I do want to spend a little bit of time talking about it on this podcast with Mark Creedon so that by the end of today show you'll figure out what's important to you and you'll have some key steps to help you achieve success in life property, business, your personal life or whatever. How Do You Know You've Achieved Success? Success can't be summed up in one sentence and there are different forms of success and that's what I'd like to chat about today with Mark Creedon, founder and CEO of Business Accelerator mastermind. I believe it is very important that one knows how to define success in life so you can be happy. As I was thinking about what we'd chat about I realized there are a number of different types of success. And I came to the conclusion you can focus on one type or you could pursue multiple types. Financial Success When you have enough wealth to meet your needs and your wants, that's financial success. Family Success When your kids know their parents love them, they will run through a brick wall for their parents. They'll do their homework, try to get good grades, take out the garbage, help out around the house, etc. That's family success. Health Success Exercising every day, eating healthy, moderating your consumption of alcohol and junk food, all lead to being healthy. When you are healthy, that's health success. Career Success Liking or loving what you do for a living, while earning the money you need to meet your needs/wants, fuels you to do your best at work. Doing your best and feeling fulfilled at whatever it is you do for a living is career success. Social Circle Success Everyone has an inner circle. When those people in your inner circle – family, friends and work colleagues are people you love, like, or care deeply about, that's social success. Mental Success When your mind is clear, calm, optimistic, upbeat, and not consumed with stress, that's mental success. Fulfillment Success Short-term happiness is anything you do that creates instant gratification. This type of happiness goes away quickly. Fulfillment, however, is long-term happiness. Fulfillment Success means feeling fulfilled in most aspects of your life: financial, family, health, career, social circle, and mental. This is the most likely the success everyone seeks. So let's talk a bit more about Success As we've said there are many different definitions of success. And not all of these will resonate with everyone, but chances are at least a few of them will. Success is always doing your best. Success can be achieved when you try your best in all aspects of everything you do, even if that doesn't lead to big results. Success is setting concrete goals. Be realistic and concrete when setting goals. Success does not come from setting abstract goals. If you know where you're heading, that is a success in itself. Success is having a place to call home. Home is where your heart soars. You are always successful when you can call a place home. Home doesn't have to be a specific structure. It can be a country, a city, or even a person. Success is understanding the difference between need and want. If you can meet your monthly obligations and fulfill your basic needs, you are successful. Success is believing you can. If you believe you can, you will succeed. Success is remembering to balance work with passion. Work without passion creates undue stress and empty achievements. Focus on what excites you. If you're happy at your job, that's great. However, even if you aren't, you can balance your formal job with hobbies or volunteer work you're passionate about. Success is taking care of your needs. Remember to put on your own oxygen mask before assisting others. Self-care is essential if you want to have any meaningful impact on the world around you. Success is learning that you sometimes have to say no. Success only comes with a balanced life. Part of balance is learning to say no. Success is knowing your life is filled with abundance. Love, health, friends, family…life is filled with abundance. Recognizing this is an important step to feeling grateful for all life has given you. If you can feel this, you are already experiencing success. Success is understanding you cannot keep what you don't give away. You will only succeed if you help others succeed. Learning to give instead of always take is part of creating a world we all want to live in. Success is overcoming fear. Conquering a fear makes you feel invincible. Even if it's confronting just one small fear each week, that is certainly something to feel proud of. Success is learning something new each day. Successful people understand that learning never stops. Take time each day to converse with someone with opposing views, read an interesting article on a topic you know little about, or watch a TED talk on new research. Success is learning that losing a few battles can help you win a war. Successful people choose their battles wisely. When you know which battles will ultimately help you achieve your goals, you will be successful. Success is loving and being loved back. Opening your heart to others is difficult and can produce fear. Having the courage to love and accept love from others is a step toward a fulfilling life and great success. Success is standing your ground when you believe in something. Successful people never give up on things they believe with all their hearts. Success is not giving up. Perseverance creates grit, and grit achieves success. Even if it takes years to achieve a goal, persisting is key if you want success. Success is celebrating small victories. Anytime a goal is reached, or an obstacle is overcome, take time to celebrate, even if it's something small. Success is never letting a disability hold you back. Disabilities do not define a person's success. The body and mind will compensate. Just because you can't do absolutely everything doesn't mean you can't do something. Do what your body and mind allow and always push yourself. Success is understanding that you control your destiny. Your destiny is controlled by you and you alone. Take responsibility for your actions and their consequences and you'll find that you naturally become more successful. The Bottom Line Success can be defined in many ways. If you are experiencing happiness, love, or adventure at this moment, you've already found success. Keep it up. Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Get a copy of Mark's new book here – Have a business not a job Join us at Wealth Retreat 2022 – find out more here Shownotes plus more here: What does success mean to you and how can you achieve it With Mark Creedon Some of our favorite quotes from the show: "If you're optimistic, you're not going to see just the obstacles." – Michael Yardney "If you're able to tell yourself you can achieve your goals, you can achieve your plans, that's great, you're already successful in believing that you're going to do it when unfortunately there are people out there who can't." – Michael Yardney "I'd rather be happy at home than right, every time." – 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

Another week, another fresh take on where the housing market is going. In the past month, all our major banks have changed their outlook for house prices and are now predicting the biggest housing crash in decades. Economists at Commonwealth Bank and National Australia Bank are forecasting house prices to fall by 10% next year and Westpac forecast house price falls of 7% in 2023 and a further 5% in 2024. Of course, these forecasts are predicated on the assumption that the Reserve Bank will begin raising interest rates later this year and housing will be "collateral damage in the RBA's efforts to keep inflation on target in the medium term. I thought I'd spend today discussing my thoughts with you – just you and me - no special guest on this show and I'll give you even more reasons why I can't see your property market crash ahead. That way, at the end of the show, you'll have more clarity and certainty about the housing market's future. Should You Be Worried? The major banks are predicting higher rates as soon as the middle of this year. They are also predicting property values to drop significantly in 2023. Will this really happen? We know the Reserve Bank is being patient and may not raise rates as quickly as many expected. In that case, ramifications for the housing market are unlikely to be as dramatic as those you're reading about in the media. Of course, the banks have already raised fixed term interest rates over the last few months, and there's little doubt that we're past the peak of house price growth. At the same time, buyers have more choices as vendors are placing their properties on the market for sale. So back to the original question: What does all this mean for house prices moving forward? Before I give you the answer to that, let's just work through what's likely to influence our property markets and the drivers that will affect house prices over the next year. Mortgage rates will rise independently of the RBA. They've already started rising. Mortgage rates will remain low by historical standards Despite the rises, the rates are still going to be low when compared to the past. Households are sitting on an unusual amount of savings. Household wealth has surged, along with the value of assets. Low stock availability and the strength of buyer interest will underpin the property markets. Investors, equity gains, and transaction volumes The RBA is waiting for wages to grow further. By the time the RBA raises the rates, wage rises, and a strengthened economy should be in place. Currently, Reserve Bank interest rates are low to bolster the economy and stimulate inflation and wages growth. Once the Reserve Bank believes inflation is comfortably and consistently within its desired band of 2 -3% and unemployment is low enough to cause significant wages growth, then the RBA will slowly raise its interest rates from stimulatory levels to neutral levels. Why home prices won't crash While falling interest rates create extra borrowing capacity and therefore increase housing affordability, rising interest rates do not necessarily cause house prices to fall. While some commentators are concerned rising rates will cause mortgage defaults, there are several reasons why this is unlikely to occur: In general, Australian households are wealthier than ever and have more equity in their homes because of our property boom. Banks' stringent lending criteria have only ensured they have only been lending to borrowers who could withstand a 2 or 3% rise in interest rates. Many Aussie households have taken advantage of the current low interest rate environment and are three or four months ahead in their mortgage payments. Our economy is bounding along, unemployment levels are low, and with the prospect of wages rises ahead, most households should not feel mortgage stress. So, the bottom line is you don't have to lose any sleep – the housing market won't crash, and the value of your home won't plummet. However, property price growth will slow moving forward, as always happens in cyclical markets. 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 heap of eBooks and reports here: - www.PodcastBonus.com.au Shownotes plus more here: A property price collapse is coming – how scared should you be Some of our favourite quotes from the show: "New borrowers haven't necessarily seen their money shrink." – Michael Yardney "Interest rates aren't going to go up to the level that will cause property values to slump, but yet, mortgage rates from the banks will go up." – Michael Yardney "Reading's essential in creativity, in innovation, and for learning from the outcomes of history. It's an opportunity to open your imagination to other possibilities." – 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

Success doesn't just happen. It's planned for. You must be intentional about it and that takes discipline What plans do you have for your future? For your investments, your career, your business, your life? It's much easier to plan than just hoping for things to happen. You see planning is helping to bring the future into your present so that you can make some things happen right now. In my chat today with leading financial advisor Stuart Weymss, we talk about how he sets his goals, and plans for the future; and considering that he's very successful in many elements of his life I think it's worth hearing what he has to say. We also share lots of useful information about investing, so at the end of today's show, you'll have better direction about how to make 2022 a great year for your investments and business. 2022 Plans and Predictions I read an interesting quote recently- "The tragedy of life doesn't lie in not reaching your goal. The tragedy lies in having no goals to reach." Much has been written about goal setting and there are lots of podcasts about that, so today I won't bore you with another podcast about how to set goals, but I want to chat with somebody who set himself some audacious goals and has managed to achieve them, in order to help you make 2022 a great year. Recently leading independent financial advisor Stuart Wemyss wrote a great blog on his predictions for 2022 and how he plans to take advantage of the year, so I thought it was worth having a chat with him to see what he believes 2022 might bring us in investment opportunities. Do you set yourself goals? Last year's property boom was part of the design for Australia's recovery from Covid – low interest rates and various incentives were aimed at creating the wealth effect: encouraging people to spend while other incentives encouraged first homeowners to get into the market – it will be a very different year this year. However, I see 2022 as the year many investors try to catch up, realizing that they missed out on the great profits of last year. The problem is they will get it wrong because this year won't be the same as 2021. It means there will be more property casualties this year. What risks and opportunities do you see ahead in 2022? Tightening of lending / APRA interfering Rising interest rates – RBA unlikely to hike but banks may. Inflation become endemic – unlikely at present Another nasty strain of Covid Supply chains not freeing up as quickly as many think they will Rising interest rates in the US Politicians interfering with the housing market to win votes Geopolitical risks Have you used the risks and opportunities that the market could offer us this year to help you set your own business and financial goals? What goal-setting process do you use? Of course, you can minimize mistakes by putting together a well-formulated investment strategy and action plan based on your clearly defined financial goals and, most importantly, the reality of your situation. Planning is key with everything really and investment is no different. You wouldn't build a house without a set of plans or drive to a destination without first thinking about the best route to get you there. The same applies to investing Common mistakes that trap the unwary1. Following the wrong financial plan Blindly turning your investments over to a "professional" to do your investing for you Focusing on the "investment" and forgetting about you the investor Focusing on "saving" versus investing Falling victim to the prevailing investment myths Not treating your investments as a business 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 Shownotes plus more here: Why we're excited for 2022 – plans and predictions with Stuart Wemyss Some of our favourite quotes from the show: "Having goals and just looking at them works subconsciously, doesn't it? It's a GPS, it finds what you're looking for." – Michael Yardney "I think it's worth setting some audacious goals to take advantage of what – if you do the right thing – could be another good year." – Michael Yardney "By developing a simplified way of thinking, of communicating, of performing, you're going to break through that ceiling." – 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