Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

As we start a new year it's interesting to look back and reflect on the challenging year we experienced in 2021, and how well the Australian economy and Australians in general have survived. It wasn't really that long ago that there were credible predictions that tens of the thousands of Australians would lose their lives, the health system wouldn't cope, there would be mass unemployment and the economy would fall into an abyss. But fortunately, 2021 finished with our economy in recovery mode, and throughout the year we experienced a once in a generation property boom with our property markets breaking multiple records and finishing at record high levels. Last year the number of suburbs where the median house price is more than $1 million has doubled, as a have the number of suburbs where the median price is over $3milion and the average Australian household is wealthier than they ever have been. No doubt there are challenges ahead, but there's also lots of good news to start off the year and that's what I discussed with Dr Andrew Wilson, chief economist of My Housing Market, in a 90 minute online live Masterclass at the end of the year. And the feedback I received after the event was amazing – I've never had as many people during event leave such positive comments in the chat room or as many positive emails afterwards, so I thought I must share this with you as a subscriber to my podcast. This particular episode of my podcast is much longer than usual because Dr Wilson gave so much great information, but it's not the whole event. But it's definitely worth staying to the end to hear Dr Wilson is forecast for property around Australia for 2022. If you happened to be on that event, I think it's worth listening to the gold that Dr Andrew gave us once again, and if you weren't at the event I suggest after listening you going to the live webinar replay where you can see many of the charts that Andrew and I discussed. I'll leave a link in the show notes. Some of the Topics Discussed in Dr Andrew Wilson's Presentation The big growth markets are starting to stabilize and push buyers out of the market The effect migration has on the property market The underlying supply position in Australia The changes in predictions for interest rates Interest rates generate house The effects of the reserve bank's rate cuts Why Brisbane is a boom market now Adelaide's recent strong performance The relationship between higher interest rates and lower house prices, and vice versa Affordability and rental crises Whether Australia will be affected by the inflation overseas Specific industries that are having challenges Why higher interest rates are being predicted over the next year or so Why the bank economists are suggesting locking into loans with today's interest rates The out-of-cycle interest rate rises How often the forecasts change What the rental markets are like at the moment The latest data on house prices Whether there are concerns about the drop in auction clearance rates 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 Watch the replay of the whole Masterclass with Dr. Andrew Wilson by clicking here Shownotes plus more here: Australia's leading property economist busts some myths and gives his forecasts for 2022 Some of our favourite quotes from the show: "We're not just going to have an affordability crisis, we're going to have a rental crisis where all these people are going to need to live somewhere." – Michael Yardney "Think outside the square. Stop following everyone else's catchy little headlines like a bunch of sheep." – Dr. Andrew Wilson "It looks like now the top affluent areas and the gentrifying suburbs are overperforming moving forward." – 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 is no accident. The most successful people in life may not always seem like they have much in common. How are The Beatles similar to Steve Jobs? Or Warren Buffett and Shane Warne? But when their traits, habits, and work ethics are distilled down, these unlikely characters share many similarities. They do the work, they turn up, they believe in themselves and sometimes, they even wear the same clothes. In today's Build a Business not a Job Podcast I chat with Mark Creedon, founder of Business Accelerator Mastermind about a dozen techniques to triumph. Drive – know where you're going Whether it is the drive to be the best in the world at a specific skill – spin bowling – or the passion to build the most user-friendly tech experience at Apple, successful people are focused on their end goal. Proven losers Once people have the ability to spring back from their losses, they are more able to take the risks and challenges life inevitably throws out. And once that mindset is in place, coupled with a focus on achievement, a loss can create a gain. Let others do their part There is a necessary time to allow others into the business and to allow them to do the job in their way. By allowing others to take the load and share their knowledge, the outcome can be greater than the sum of its parts. Avoid distractions – from their goal and in daily life Achieving a distraction-free state of flow is the best and most efficient way to work and get things done. Communicate. Without it, 'It's like winking at a girl in the dark' Berkshire Hathaway founder Warren Buffet says communication skills are the most important traits for success. "If you can't communicate, somebody said, it's like winking at a girl in the dark," he says. "Nothing happens." Break the mold Successful people are often willing to stand out. Test cricketer Stuart McGill says spin legend Shane Warne "broke the mold" in cricket, not only with his spin action but also with his off-field antics. This pairing of performance and personality brought new followers to the game. Think on your feet The ability to be agile and take chances – even if they fail – is a key habit of the successful. Let's do it People who thrive see the outcome. They determine a course of action and set their minds to achieve it. Routine is a common element for those who succeed. Yes, yes, yes, no. Make the decision Successful people are decisive. They may not always be right, but at least they make a decision, which allows for a speedier process and new possibilities. 'Done is better than perfect' This leads on from decisiveness. The philosophy is about achieving small steps, not about sacrificing quality. As there is no such thing as perfection – which is different for different people – many successes consider milestones and progress more important than a mythical ideal. 'I get knocked down, but I get up again' Resilience is considered the most important characteristic for success. People will inevitably get knocked down, criticised, rejected, or considered wrong, but with stamina and grit, many people overcome. Old-fashioned hard work, turning up every day, gets results. T-shirt and jeans Many successful people have systematized their life to strip back distractions. By either planning ahead or making a routine of everyday tasks, they can reclaim time and energy to think about other outcome-focused enterprises. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Join us at Wealth Retreat late in 2020 in join- find and more and register your interest here Shownotes plus more here: 12 habits of highly successful people with Mark Creedon | Summer Series Some of our favourite quotes from the show: "I think one of the worst things that can happen is to get it right the first time." – Michael Yardney "I think one of the traits of successful entrepreneurs, businesspeople, professionals, is that they get going knowing they don't know it all, but they know enough to get going and understand that they're going to learn the rest along the way." – Michael Yardney "It's just too hard to do it on your own." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

What will life be like when the COVID-19 crisis passes? What aspects will stay with us, and what will disappear? We've been thrust into a moment of rapid change, but most of us don't like change. It makes us feel uncomfortable. We like a level of certainty about our future, health, and jobs, as well about the worlds of finance and property that most of us are interested in. But there are lessons in history that can provide us with valuable insights. In today's episode, we'll talk about some of the things that never change in a world that never stops changing. Successful investors and businesspeople need to be prepared for change but also understand the things that don't change. So, by the end of today's show, you'll come out with some ideas about how to get some more certainty in these uncertain times. I'm also going to share a mindset moment from one of my mentors and have a chat with Ken Raiss about estate planning. Some things that never change in a world that never stops changing The things that never change are the most important things to pay attention to. However, change gets the most attention because it's exciting, it's surprising, it's something that the media can comment on. You see…predicting the future is hard. Very few can do it. On the other hand, understanding what stays the same is very useful. Particularly in challenging times like we're currently experiencing. Of course, I still have no idea what's going to happen in the future, but I'm a little less surprised whatever does happen if I have a handful of assumptions that I can put my faith into to guide me moving forward. So, let's look at some things that never change in a world that never stops changing. More people wake up every morning wanting to solve problems than wake up looking to cause harm. I'm an optimist and have faith in society, but I recognise that those with a negative message get more airplay in the media and incite negative sentiment in our community. Fact is… in life you get whatever you expect to get. The only question is, what do you want? If we were not optimistic, none of us would bother setting up a business, employing people, taking risks, or investing in property. If we were totally realistic about how often people fail, how often things go wrong, how most property investors never build a substantial property portfolio, we would never even bother getting started. Your outside world is a reflection of what's happening inside your mind. So, feed it with positive, optimistic thoughts. The world breaks about once a decade. This is an interesting expression I learned from columnist Morgan Housel of the Collaborative Fund. But it's true and there seem to be very few exceptions to this. There is a major disruption every decade or so. It could be an economic, political, military, or social issue. The bad news is never as bad as it sounds How many times does the end of the world as we know it need to arrive before we realise that it's not the end of the world as we know it? Of course, those with a long-term perspective, who have lived through a number of economic shocks and property cycles, tend not to get as shocked when major events like we're now experiencing hit us. However, those who have not experienced these types of shocks tend to worry more and imagine the worst because they have no perspective to rely on. 4. This too shall pass Nothing too good or too bad stays that way forever. I've found these types of major upheavals are not as scary if you have the underlying belief that they'll keep happening but that in the long term they don't prevent the long-term growth of our economy and our property markets. History doesn't really repeat itself. We've all heard it before - "History repeats itself!" It's an inane statement that seems so wise on the surface but crumbles under serious scrutiny. Morgan Housel wisely said: "History is mostly the study of unprecedented events, which, ironically, we then use as a map for what could happen in the future." Estate Planning with Ken Raiss Estate planning is something a lot of people don't think about until it's too late. But you want to be able to pass on your wealth in an efficient manner, and estate planning is crucial to your overall wealth plan. Some critical estate planning documents: A will – your will should be set up so that instead of passing on your assets to your beneficiaries directly, they're passed on in a testamentary trust. This has tax benefits and helps to ensure that wealth remains in the family. Non-Estate Assets – You may need either a Binding Death Nomination or Superannuation Will in order to distribute superannuation funds. Enduring Power of Attorney – this document pass decision making authority onto another person in the event that you're physically or mentally incapacitated. These documents can give authority that is as broad or as specific and narrow as necessary. Medical Power of Attorney – This document helps you to finalize your wishes in relation to things like organ donation. Personal Details – This is a non-legal document that can help you pass on things like account numbers, passwords, where to find policies and valuable items, information necessary for paying bills, subscription information, and so on. Links and Resources: In these challenging times why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Why not have a chat with Ken Raiss of Metropole Wealth Advisory Shownotes plus more here: It's important to understand these things that never change in a world that never stops changing + Estate planning with Ken Raiss | Summer Series Some of our favourite quotes from the show: "In my mentorship program, I know that those people who write down their plans, write down their goals, and visualize them are much, much more likely to get them." – Michael Yardney "Your reticular activating system is that part of your brain that cuts out all the surplus extraneous information that's coming in and hones in. It's your GPS." – Michael Yardney "In summary, prepare for the inevitable by having somebody on your side preparing a number of documents, including a will." – 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

Can property prices really keep rising considering where they are today? And how much are property prices likely to fall once this cycle comes to an end? These are some of the questions Brett Warren and I are going to discuss in today's podcast To do this we are going to look back at history and see what we can learn from the past 50 years of economic and property price changes and what has driven them to help give you some clarity on what's ahead for our property markets and the value of your and my home. What History Tells Us About What's Coming It's interesting how the narrative in the media has changed – only a few months ago it was about a booming property market and now the media is full of questions about how long this boom can last and how far property values are going to fall once it's over. Can property prices really keep rising? 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. What's going to happen to property prices in the short term? Will they fall after this boom ends? While property prices are notoriously difficult to forecast, in my mind it's hard to see the same size downturn befalling the current market, at least in the near-term. Let's look back and see what we can learn if I look back on close to 5 decades of investing, and see what may be ahead. In 1970, the median Sydney house price was $18,700 The median price in Perth was a relatively $17,500 In Melbourne, median price was just $12,800. In 1971, house prices were $11,900 in Adelaide They were $18,000 in Canberra They were $11,875 in Hobart The earliest data for Brisbane is for 1973, when the median house price was $17,500. In 1965, the unemployment rate was 1.3 percent For the period from 1964 to 1971, the unemployment rate was 1.9 percent or lower. In both 1974 and 1975, annual inflation was over 15 percent From 1973 to 1983, inflation averaged 11 per cent per annum. So why has inflation been so low for the last decade or more? Firstly, unionised labour is now a fraction of what it used to be. Second, the world has been investing heavily in technology and in particular, automation for the last decade. Thirdly, globalization. Open trade has also led to higher rates of immigration. Four, immigration. There is little doubt that a high level of immigration, especially when a large proportion of the migrant influx is looking for work, limits domestic wage growth. Five, Long Covid #1. We see a repeat of 2021, being that we remain constrained due to new Covid mutations. We spend less when we are locked down What about affordability? There are a number of affordability measures used and most of them are not very useful Ratio of dwelling values to income – this is the most widely used and internationally comparable method The number of years it takes to save a 20% deposit The proportion of household income required to service a new mortgage The proportion of household income required to pay rent So, on the one hand, it is difficult to get into the property market at present, and I know I'm going to annoy some people, but it's not just an issue of affordability – it's also an issue of expectations. Some young millennials are expecting to start their property journey in the type of house it took their parents to 30 or 40 years to acquire What about mortgage stress? In my mind, the best measure of mortgage stress is home loan arrears or home loan defaults. Currently, home loan arrears (those more than 30 days late) are only 1.14% Is there really a debt bomb waiting to blow up? No. We have a stable banking system. We have jobs and Income security We've stashed our cash and most households are better off financially than before the pandemic. So what's likely to happen to property values in 2022? I see house prices growing more slowly in 2022 and then the market peaking around in 2023 or whenever APRA or the Reserve Bank intervenes. In general, I agree with the latest house price forecast of the big banks suggesting that property values may increase around 6 to 8% in 2022. If our economy picks up as well as the RBA hopes it will, and if we get the 200,000+ migrants coming to Australia next year, and a big if is if that if there are no more major variants to Covid, our property markets could perform even better than that. At the same time our rental markets, which are currently very undersupplied, will experience strong rental growth. However, as we said earlier, moving forward they will be a two-tier property market where properties in the lower price brackets and some of the regional areas will become affordable to the locals and therefore not increase much in value. So don't count on the rising tide lifting all ships. 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 Shownotes plus more here: How steeply will house prices fall after this boom? With Brett Warren Some of our favourite quotes from the show: "It's unfathomable unthinkable how our economy and how our cities and how our society has changed in the last half a century." – Michael Yardney "Demography moves slowly – you can see as people change through their stages in life what their requirements are going to be." – Michael Yardney "Most households in Australia are better off financially than before the pandemic." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you're a poor negotiator, you're going to spend a fortune, if you're a good negotiator, you'll save a fortune, if you're a great negotiator, hopefully you'll make a fortune. Success in life depends upon your ability to influence. And I've just recently had my 9th book published - Negotiate, Influence, Persuade. In today's podcast, Mark Creedon has a chat with me and I share some tips from my book. Now if you think about it, life is one long negotiation. Either you're buying what somebody else is telling you or selling you, or they're buying what you're saying. And you negotiate all day in your life, with your spouse, your children, your work colleagues, your customers, and your clients. At the end of today's show, I hope you're going to know some negotiating rules and you're going to be a better influencer and more persuasive. Some of the topics we discuss in today's episode: Why negotiation is so important Whether you realize it or not, you're negotiating all of the time, not just in business, but in life. You need to know more than just negotiating techniques. You need to know how to communicate with people, how to do it in different ways, such as digitally, and how to ethically influence and persuade people. How Negotiate, Influence, Persuade is about more than just negotiation The book isn't just for salespeople, it's also for consumers, because we all negotiate every day. The book is meant to help readers get the best deal whether they're buying or selling. Further, the book is meant to help readers get what they want when they want while still maintaining good relationships. It includes a theme of using negotiating skills in an ethical way The book includes 27 rules of negotiation. These are three of them Everything's negotiable. That doesn't mean you're always going to get what you want, but it means that the potential for negotiation is always there. You should know what you want before you negotiate. Know what the highest price you'll be willing to pay is, or the lowest price you're willing to sell for Treat negotiation as a game. If you're too emotionally involved, you'll lose perspective You often hear that you should never be the one to make the first offer Actually, people who make the first offer actually usually have the upper hand. How important preparation is in negotiation It's important to know what you'll be willing to pay or accept It's also necessary to understand the other person and what they're trying to achieve. Why building rapport is such an important part of the negotiating process 95% of persuasion occurs at the subconscious level Some of the different types of bias in a negotiation: Cognitive bias Anchoring bias Bandwagon bias We don't always realize how much we negotiate. You're negotiating when you're trying to get the best table at the restaurant, decide who will take out the trash, or determine what to watch on TV 3 sources of power in negotiation: Time power Information power Alternative options power 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 your own copy of Negotiate, Influence, Persuade by clicking here Some of our favourite quotes from the show: "If you're a poor negotiator, you're going to spend a fortune, if you're a good negotiator, you'll save a fortune, if you're a great negotiator, hopefully you'll make a fortune." – Michael Yardney "In my mind to become a power negotiator, you need to understand human psychology, human nature." – Michael Yardney "If you want to become a better negotiator, you're going to have to understand how the mind works, yours and the prospect's mind." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What's ahead for property in 2022? If you're curious about what will be affecting our property markets in 2022, you will love today's show, because Pete Wargent and I discuss 8 trends that will shape the property markets for 2022 and beyond. Property trends for 2022 We experienced a wild ride in property in 2021, didn't we, so what's ahead for 2022? While our property markets are slowing down as the year ends, there is still significant momentum, so the main factors which will determine what happens to property next year will depend on what the RBA does to interest rates and if APRA tightens the screws further on lending. But despite the best predictions, if history has taught me anything, it is that there will be an unexpected X factor coming out of the blue to undo the most seasoned property forecasts, either on the upside or the downside. However here are seven property trends I expect to happen in 2022 Property values will continue to rise While many factors affect property values, the main drivers of property price growth are consumer confidence, low interest rates, economic growth, and a favourable supply and demand ratio. As always, there are multiple real estate markets around Australia, but in general property values should increase throughout 2022, but at a slower rate of growth than 2021. We're in for a 2-tier property market moving forward. While most property markets around Australia have performed strongly so far this cycle, moving forward the rate of property price growth will slow and there are several reasons for this including: Affordability issues will constrain many buyers. The impetus of low interest rates allowing borrowers to pay more has worked its way through the system and with property values being 20- 30% higher than at the beginning of this cycle at a time when wages growth has been moderate at best and minimal in real terms for most Australians, means that the average home buyer won't have more money in their pocket to pay more for their home. The pent-up demand is waning – While there are always people wanting to move house and many delayed their plans over the last few years because of Covid, there are only so many buyers and sellers out there and there will be fewer looking to buy in 2022. APRA – is intent on slowing our markets using macroprudential controls This will lead to a two-tier property market - in other words, not all locations will continue growing strongly moving forward. I can see properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, significantly outperforming cheaper properties in the outer suburbs. Our economy will pick up Households have squirreled away an estimated $200 billion this year, with the prolonged lockdowns in Australia's two largest cities keeping people indoors and spending less. Some of it will go to paying down debt and some will go into buying assets. We're already seeing this in retail spending, and it's been apparent in our property markets throughout the year as many homeowners upgraded. The "official" interest rate will remain unchanged In my mind, the official RBA interest rate is likely to remain unchanged throughout 2022. Australia's economy is still operating below its potential with economic growth and wages growth not strong enough to justify an interest rate increase. APRA is likely to tighten its macro-prudential measures APRA has only really tapped its foot on the brake pedal; it hasn't really pushed down hard on the brake to slow our markets down so if the property markets continue growing too fast for their liking, they are likely to introduce stricter measures. A flight to quality As the market matures, we will see a flight to quality with well-located A-class homes and investment-grade properties still selling well, but secondary properties having trouble finding buyers. More property investors return to the market So far this property cycle has been driven by owner-occupiers and first home buyers, but now more and more investors are getting in the market. Of course, this always happens after a period of strong housing price growth when a whole new generation of investors read how well others have done by owning property. Here's something I can guarantee will happen in 2022 The property pessimists will still be out there telling us not to invest and that our property markets are going to crash. And as has been the case for the last few decades - they will be wrong. Where to buy your next property? If you want to outperform the average investor, if you want to develop financial freedom through property investing, then don't start by selecting a location, or looking for that ideal property. Things have to be done in the right order – and selecting the property comes right at the end of the process. The property you will eventually buy will be the result of a sequence of questions you will need to ask and answer and a series of decisions you'll need to make before you even start looking at locations. So, my first recommendation to anyone asking where to invest is to sit with an independent property strategist to formulate their plan. It's just too difficult to do on your own and I've found most investors tend to be too emotionally involved to see their situation objectively. The benefits of formulating such a plan include: It will help you define your financial goals. You'll discover whether your goals are realistic, especially for your time frame. You'll find out what you've done right and what you've done wrong along your financial journey so far and what you can do about it. You'll be able to measure your progress towards your goals and whether your property portfolio is working for you, or if you're working for it. Your plan will help you identify risks you hadn't thought of. By following a documented plan, the real benefit is that you'll be able to grow your wealth through your property portfolio faster and more safely than the average investor, without making any more costly mistakes along the way. When selecting a location, I would initially start by eliminating locations. For example, I would not be investing in regional Australia or in the smaller capital cities. There's no doubt that some better performing regional locations or certain suburbs in our small capital city will outperform the poorer performing suburbs of our three big capital cities. But when I suggest you should only consider investing in Australia's big three capital cities, I'm also saying that it's important to be very selective in choosing suburbs in these cities – investment grade suburbs that are likely to outperform. I look for suburbs where wages (and therefore disposable income) are increasing above average. These will either be: Discretionary Locations These are the most expensive locations in our capital cities – the "established money" locations where most of the residents have lived for a long time and where many residents have paid off their home loans years ago. Aspirational Locations These are the upper-middle-class areas and gentrifying locations of our big cities. Avoid affordable suburbs This is where most homeowners and many investors look because that's where they can afford to buy. Avoid last choice locations In every city, there are suburbs where people live because they really have no choice. But it's not only the location that's important. While I believe that 80% of your property's performance is related to its location, the other 20% or so is related to buying the right property in that location. Even in the best suburbs, there are some properties I would avoid – they just don't make good investments and others I would be keen to have in my portfolio. Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Join Michael's Property Update private Facebook group by clicking here Pete Wargent's new Podcast Shownotes plus more here: Property forecasts and trends for 2022, with Pete Wargent Some of our favourite quotes from the show: "Most investors get it wrong because they come in at the end of the cycle when they've heard in the media that auction clearance rates are high and property values are high and now rentals are going up." – Michael Yardney "Neither APRA nor the Reserve Bank want the property markets to crash." – Michael Yardney "In my mind, property investment is a high-growth, relatively low-yield investment." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What does it take to become a successful investor? You know, one that builds a large property portfolio rather than selling up over the first few years like happens to about half of those who get involved in property. What does it take to be part of the 1% of property investors who build a portfolio of six or more properties? Now that was a question asked of me recently by Aaron Christie Davies for his Australian Property Investor Podcast and I think I know the answer to this because an audit of our clients at Metropole showed that they are 7.3 times more likely to own 6 or more properties than the average Australian property investor I believe Aaron elicited some great insights from me by asking the right type of questions, so I asked for permission to replay his interview with me audience of my podcast. So, whether you are beginning the property game or well on your way to being in the top 1% of investors, I'm sure you'll get some benefit. Topics I discussed with Aaron Christie Davies The value of giving How Michael's property investment journey started Michael's beliefs on time in the market vs. timing the market Michael's process for building his portfolio Michael's business, Metropole, and how it unfolded What happens when portfolios lose their momentum How Metropole helps clients reach the next level The message of rich habits and poor habits and why it's important The importance of a good team and a strategy Links and Resources: Michael Yardney Aaron Christie- David - Atelier Wealth – Australian Property Investment 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 free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: The secrets of the top 1% of property investors Some of our favorite quotes from the show: "I didn't start off knowing what I wanted, I didn't have a plan, I didn't have a strategy, other than I knew I wanted to be rich and I wanted to be like those other, wealthy property owners." – Michael Yardney "You can get to a particular level, but not many people get to the next level." – Michael Yardney "So, the difference between the rich and the wealthy is the wealthy don't have to worry about money while the rich do." – 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

Our current property boom is going to create a whole new generation of wealthy Australians. But since most people who become involved in a property boom don't become financially independent, last week I started this special series of podcasts discussing 40 lessons I learned in the last 40 years of property investment to hopefully help make sure that you're one of the ones who does succeed. Last week, I shared 20 property lessons, and today I'm going to share the other 20. 40 property investment lessons I learned in the last 40 years – Part 2 Last week, I asked, with the benefit of hindsight, would you have bought an investment property in 1980? What if I warned you about the recessions, pandemics, and other challenges that were coming? What I wanted to share with you in this two-part series are the lessons I learned in that time period that made me a better investor. No one really knows what's going to happen to the property markets. Don't listen to who most property investors listen to for investment advice. Timing the property market is just too hard. It's much better to buy the best asset you can afford and hold it for the long term. Any property can become an investment property – just kick out the owner and put a tenant in place and it becomes an investment property. But not all properties currently on the market are "investment grade" and will deliver wealth-producing rates of returns. Don't rely entirely on property data – it can be misleading and can be twisted to say almost anything. Property investment is part science and part art – you need to understand and interpret data (science) but you also need an on-the-ground perspective to employ that data (art.) There are 4 ways you make money out of property: Capital growth, rental income, tax benefits, and forced appreciation or manufactured capital growth through renovations or property development. But these streams of income are not all equal. Tax-free capital growth is the most important. Cash flow is important to keep you in the property game, but capital growth will get you out of the rat race. You will never get rich from earned income or savings. Location will do around 80% of the heavy lifting of your property's capital growth. Be greedy when others are fearful and be fearful when others are greedy. Don't do what most property investors do. The majority of property investors fail. Treat your property investments like a business Don't look for fun or excitement in your investing. Diversification is for people who don't know how to invest. Having the right mindset is critical to investment success. While knowledge is important, successful investors take action. There are always risks associated with investing. Don't be afraid of failing, because the biggest risk is not doing anything to protect your financial future. Don't waste your time worrying. Most things you fear will happen never do. They're just monsters in your mind. Never give up. You will have failures along the way – in fact, I'm a real success at failure, but each time I'm knocked down I get up again. You need resilience to be successful. Resources: Get a range of my best eBooks and reports at PodcastBonus.com.au 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: 40 property investment lessons I learned in the last 40 years – Part 2 | Summer Series Some of our favorite quotes from the show: "There are too many enthusiastic amateurs out there at the moment offering investment advice." –Michael Yardney "You need to make your money work hard for you, even when you're asleep." – Michael Yardney "Everyone does everything with money, no matter how silly it looks, because at the time it makes perfect sense to them." – 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

It should come as no surprise that the current property boom will create a new generation of wealthy Australians. However, if history repeats itself, most people who get into property investment this cycle won't become financially independent. Just look at what happened during the last property boom, and the ones before that. 92% of those who held onto their property never got past the second property. You can't develop financial independence from just one or two properties. Real estate has soared in value by more than 500% in the last 25 years, but most investors failed to develop a substantial portfolio. So, I've put together a special two-part series to help you make the most of our property markets. In today's show and the next one, I'm going to share with you 40 property investment lessons I've learned in the last 40 years to help you become a successful property investor and create lifetime wealth. Let me ask you a question… With the benefit of hindsight and knowing what you know now, if you had the opportunity to do so, would you have bought an investment property 40 years ago? I bet your answer would be yes. But what if you didn't have the benefit of hindsight and there we both were, back in 1980 and just as you were about to invest in a property I told you that in the next year or two Australia would fall into a recession and that in 6 years' time negative gearing would be removed only to be reintroduced a couple of years later. What if I told you there was going to be a stock market crash in 1987, and a severe recession in the early '90s, meaning that in the first decade of owning your investment property you would have had to face all those headwinds. Of course with the benefit of my time machine and you still being back in the 1980s as you planned to buy your first property I would also warn you about the upcoming AIDS scare and the SARS pandemic, the Asian financial crisis, September 11th, the Global Financial Crisis, the Coronavirus induced world recession. Would still have had the courage to buy that property back then in 1980? The answer for many people would now be: "No…why on earth would I invest in property knowing there are so many challenges, problems, and risks ahead?" Of course, they would have missed out on some amazing wealth-building opportunities, wouldn't they? I was already investing for almost a decade back in 1980 and I did buy another investment property that year. And over the years the capital growth I achieved from my investment properties allowed me to keep adding to my portfolio meaning that today I have a significant "cash machine" that gives me the lifestyle choices I was looking for back then. Of course, along the way, I've had some great investment wins but I've also made more than my share of mistakes. And I learned many lessons that I wish I knew back then, so here are… 40 property investment lessons I learned in the last 40 years The economy and our property markets move in cycles. Booms never last forever, neither do busts. That is mainly because most of us get swept up in the optimism or pessimism of others. Despite the ups and downs, the long-term trend for well-located capital city properties is rising values. Even though they are armed with all the research available in today's information age, economists never seem to agree where our property markets are heading and usually get their forecasts wrong. Every year we get hit by an X factor – an unforeseen event or situation that blows all our carefully laid plans away. Then every decade or so we have a major event and the world "breaks." There are multiple property markets in Australia. Property investment is risky in the short term, but secure in the long term. It is definitely not a way to get rich quickly Since property is a long-term game, don't look for "what works now." Instead, look for "what has always worked." Residential property investment is a high growth, relatively low yield investment class. Don't try to make it something different. At times of poor or no capital growth, strategic property investors "manufacture" capital growth through property renovations or development. Residential investment is a game of finance with some houses thrown in the middle. Taking on debt is not a problem. Not being able to repay debt is an issue, meaning cash flow management is a critical part of wealth creation. Property investment is a process, not an event. Strategic investors not only buy properties, but they buy themselves time to ride out the cycle by having financial "cash flow" buffers in place. Wealth is the transfer of money from the impatient to the patient. I must thank Warren Buffet for that quote. The media is not there to educate you, but its job is to get you to click on their links so that they receive revenue from their advertisers. So don't rely on the media for investment strategy or advice. There will always be someone out there telling you not to invest in property. There will always be people out there telling you to invest in property. So, understand their vested interests – they don't usually have your best interests in mind. Savvy investors surround themselves with a great team and are prepared to pay their advisors – they see it as an investment, not a cost. If you're the smartest person on your team you're in trouble. You are going to make investment mistakes along the way and you'll either end up paying a significant learning fee to the market or you can pay your advisors and learn from their experience and mitigate your risks. Resources: Michael Yardney 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: 40 property investment lessons I learned in the last 40 years – Part 1 | Summer Series Some of our favorite quotes from the show: "Don't be surprised when the booms and the busts come around and don't overreact." – Michael Yardney "Over the years, I've found that it takes the average property investor around 30 years to become financially independent." – Michael Yardney "Knowing what not to do, in my mind, is just as important in achieving success as knowing what to do." – 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

Not all investors are created equal. If you want to become a successful property investor you really need to understand the five levels of investing which is a model that I've designed to explain how most investors progress along their path to financial freedom. Just to be clear, this has nothing to do with your level of income. It has a lot to do with your financial fluency and financial intelligence. If you want to work your way up the rung of investors, you're going to have to understand which level you're at right now present and what you have to do to work your way up to the next level. After today's episode, you'll understand more about the levels and where you fit into them. After I've explained the five levels of investing, I'm going to share a mindset message from one of my mentors. The Five Levels of Investing Level 0 – The Spender Those at level 0 end up with a high level of debt because they spend and borrow, living paycheck to paycheck. They aren't really investors at all; they're spenders and borrowers. Level 1 – The Saver Those at level 1 have one main investment – their home. They save money, but they save it to spend it later, not to invest it. Savers are often unwilling to take any risks with their money and fear financial matters that look risky. Level 2 – The Passive Investor Those at level 2 are aware of the need to invest in order to grow wealth. However, they don't necessarily understand the rules of money and may be hanging on to outdated ideas about finance. Passive investors look for outside sources and "experts" to tell them what to do with their money instead of educating themselves, which can make them easy prey for get rich quick schemes. Level 3 – The Active Investor Those at level 3 are actively involved in their investment decision and take responsibility for their own financial futures. They focus mainly on growing their asset base. Active investors understand that they can't do it all themselves, so they form networks of advisors and peers or join Mastermind groups. Level 4 – The Professional Investor Those at level 4 have risen to a level where they have built and now manage their own investment business. They have a substantial asset base that generates enough passive income to pay for their lifestyle, and they continue to grow their portfolio whether or not they work a real job. Professional investors retain control of their investments while employing a team to help them continue to achieve consistent results. Where do you fall in the levels of investors? Not everyone makes it to Level 4. In fact, few get that far. But you can, once you understand why the rich keep getting richer. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in June this year – find out more here: Wealth Retreat 2020 Shownotes plus more here: Do you understand the Five Levels of Investing? | Summer Series Some of our favourite quotes from the show: "Level 4 investors rarely stop educating themselves." – Michael Yardney "A final point about Level 4 investors is that they teach their financial knowledge to their children. They pass on their family fortune to future generations." – Michael Yardney "You can be a low-income earner when it comes to your day job, but still be a level three investor and have financial security." – 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