Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

One way of getting more finance as a property investor is to get a higher valuation on your properties. So how do you go about this? How does a valuer evaluate your property – what do they like to see, what adds value, and what makes them nervous? These are some of the questions I'm going to ask my guest today, Belinda Botzolis, a valuer with one of the leading national firms of valuers, but as you'll soon find out, Belinda is far from a conventional valuer. And even if you're not about to get a valuation or revaluation, I'm sure you'll find the property tips Belinda has to offer of real value and there's a little bombshell Belinda will leave us with at the end of our chat – but you'll have to wait till the end to hear that. I'll also share my popular mindset message with you at the end of today's show. Valuation with Belinda Botzolis In my chat with Belinda Botzolis, a valuer, we get a sneak peek behind the curtains of what they do, how they value property, and what you can do to improve your valuation. Topics Belinda and I discuss: How Belinda decided to become a valuer After turning to a page in her university's guidebook that explained the Bachelor of Business Property Economics degree and speaking to a family friend who was a valuer, Belinda knew what she wanted to do. When Belinda bought her first property She was 22 She chose an investment property that she and her husband would eventually like to live in They could have borrowed more, but knew the home wasn't a forever home, just a first investment, so sensibly did not overextend. Belinda's advice for those new to the market: It will feel like it's never going to happen, but it will Have a plan b, a plan c, and a plan d What people ask Belinda when they find out she's a valuer "Why do you undervalue my property?" People don't realize that property valuations are based on what the property would be worth if it went on auction today. The risks that valuers look at The unusual properties that Belinda has valued Hoarder homes are most likely to strike Belinda as unusual What does and doesn't add value to a home Getting the kitchen and bathroom right matters most Adding a pool might add value, but not enough to give you a return on the investment Whether aspect and orientation matter The north aspect is key Main and secondary roads are risk-rated. Valuers don't like them. Off the plan properties and house and land packages in the outer suburbs can get knocked back by valuers Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Discover how valuers assess your property so you can maximize your borrowing capacity, with Belinda Botzolis Some of our favourite quotes from the show: "Just like there's never a perfect property, there's never a perfect time to invest, either." – Michael Yardney "Giving up too easily is a bad habit you should avoid." – Michael Yardney "It's important to ditch unhealthy lifestyle habits." – 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 our property markets? If you're like most property investors, you'd probably give your second garage to know what's in store now that our markets seem to have moved to the next stage of the property cycle. Sure, our markets are still booming, but there seem to be more headwinds ahead. In light of that, in today's show, I'm going to answer the question: where should you buy your next investment property? And even if you're not planning to buy soon, I think this episode will be informative for anyone who's interested in property. I'll also share my mindset message about things I would have liked to know at the beginning of my investment journey. Where would you invest in property in Australia today? Where, what location, and what would you buy, and why? And by the way…is real estate still a good investment in Australia? These questions were recently posed to me by journalists, and I can understand why – they are common questions investors are asking today and they make great headlines for articles. Everyone would like to know how to find the best property investment locations or Australia's best growth suburbs. However, statistics show that around 50% of all property investors sell up in the first five years, and of those that stay in the market, 92% never get past their first or second investment property. So, 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 must be done in the right order – and selecting the property comes right at the end of the process. My first recommendation to anyone asking where to invest is to sit with an independent property strategist to formulate their plan. The benefits of creating a plan with an expert include: It will help you define financial and investment goals. You'll discover whether those goals are realistic. You'll find out what you've done right and what you've done wrong along your financial journey. You'll be able to measure your progress towards your goals. Your plan will help you identify risks. Understand the three important parts of your investment equation: Your budget Location The right property Be aware that investors usually need to compromise on at least one of the above. So, what about that journalist's question- "Is real estate still a good investment? While most property markets around Australia have performed strongly so far this cycle (other than the inner city of high-rise apartment market), it's important to realize that moving forward we are likely to have a 2-tier property market. In other words, not all property markets will continue growing strongly moving forward. Properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, will outperform cheaper properties in the outer suburbs. While the outer suburban and more affordable end of the markets have performed strongly so far, affordability is now becoming an issue as the locals have had minimum little wages growth of the time when property prices have boomed. As their priorities change, some buyers will be willing to pay a little more for properties with "pandemic appeal" and a little more space and security, but it won't be just the property itself that will need to meet these newly evolved needs – a livable location will play a big part too. Considering locations I would not be investing in regional Australia or in the smaller capital cities. But more than that I look for an affluent demographic who will be able to and prepared to pay more to buy or rent in these suburbs. I don't like to fight the big trends. Why fight with the gorilla? Other important drivers of capital growth include supply and demand, infrastructure, livability, and amenity. 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. On the other hand, I would avoid investing in the more affordable locations as this end of the property market underperforms over the long term with regards to capital growth and rental growth because many of the owners are young families who have stretched themselves to their financial limits and are often only a week or two weeks away from broke. People will pay a premium to be in the right neighborhood What about choosing a property in your preferred location? In general, there are 3 types of property. A grade properties are the type of assets you want to own, and the type of properties where great tenants want to live, not because they need to, but because they want to and are prepared to pay extra to live there. B grade properties still have a lot going for them, and during hot property markets like we are currently experiencing they still perform well, but their second location within their suburb or the less than perfect attributes of these properties mean they will slump more in downtimes. C grade properties – these are to be avoided unless they're in a great neighborhood and your intention is to demolish the property and replace it with something more appropriate for the location. Here are some of the factors to look for when selecting an investment-grade property: Buying below the property's intrinsic value A high land to asset ratio A property with a twist A property where you can manufacture capital growth through renovations or redevelopment. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Where should you buy your next investment property at this stage of the property cycle? Some of our favorite quotes from the show: "You see, property investing is a process, not an event." – Michael Yardney "When selecting a location, I would initially start by eliminating locations." – Michael Yardney "You shouldn't be doing what everyone else does, because otherwise, you'll get the same results they 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

Are you wondering what's ahead in property for 2022? Maybe you'd like to know what other Australian property investors plan to do? Well, that's exactly what we discuss in today's show as we unpack the results of this year's Property Investor Sentiment Survey. You'll hear what 1,700 Australians feel about our current real estate markets and what they plan to do. And you'll also hear what Covid did to their property plans and how if at all it changed their strategy You see…they took part in this year's Property Investor Sentiment Survey run by my Property Update newsletter in conjunction with Yahoo Finance Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. And as usual, I'll share a mindset message with you because if you can change your thinking it could change your life. What you need to know about this year's Property Investor Sentiment Survey While we may all be in the same ocean, we are not in the same boat, and while some Australians have lost their jobs or are working shorter hours and have suffered financially, others are doing the same as before the pandemic or better. Sure 2021 will be a year many of us would rather forget, even though very few of us ever will. However, for homeowners and property investors it will be a year when the value of their properties will have increased by up to 20% - in some cases, they will earn more from property capital growth than they will from their day job. Investors are more cautious this year A surprising result this year was that while only 12.4% of the respondents said their household finances had worsened because of the pandemic. In other words, most Australian households have noticed no real change or an improvement to their family finances, only 55.2% believe now is a good time to invest in residential real estate. However, 24.7% of respondents plan to buy a new home in 2022 (up a little from 24% last year and 20% the year before.) How did the pandemic affect your household finances 57% of respondents said there was no real change to the household finances, while 28% said their household finances had improved. This is no real surprise as, despite Covid, lockdowns, and a recession last year, recent Australian Bureau of Statistics figures show the average Australian is getting richer. We also asked some Covid-specific questions in this year's survey. Some of these questions include: Are you considering moving to live in a different location because of Covid 19? Most are not, though they may have been considering it before things began to settle down Is this a good time to invest in property? People are less confident this year and less likely to want to invest than they were last year. if the Coronavirus pandemic had changed their attitude or approach to property investing? In general, attitudes remained about the same as last year Has the pandemic impacted your immediate investment plans in the next 12 months? Most are sticking to their original plans Have you requested a mortgage repayment holiday from your lenders? Have you received a request for a rental reduction or holiday because of COVID-19 from your tenants? Has the pandemic changed your work situation? How has the pandemic affected your household finances? Do you think now is a good time to fix interest rates? Whose advice do you seek (or plan to seek) for property investment advice? About a third of the respondents planned to seek advice from a property strategist or advisor The bottom line: It's clear that property investor confidence remains strong and those who can afford to are planning to take advantage of the investment opportunities are housing market is currently offering by buying another investment property or new home if finances allow. Our survey shows that Australian property investors focus on long-term capital growth, rather than cash flow and many are looking for a property that has the potential to add value, rather than waiting for the market to do the heavy lifting. While investors will still face a number of hurdles with the economic challenges facing Australia, few have changed their long-term investment plans due to COVID-19. Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Click here to read the full survey results. Shownotes plus more here: Here's what 1,700 investors think is going to happen to property in 2022, with Brett Warren Some of our favourite quotes from the show: "No one's born talented at making excuses." – Michael Yardney "Many Aussies are in at least as good a financial situation or better compared to when the pandemic began." – Michael Yardney "In general, people didn't think it was as good a time to invest as last year." – 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

A number of years ago I started making a list of all the things one needed to know about investing. I wanted to capture the favorite quotes I have read and the lessons I have learned. This ended up being a more ambitious project than I envisaged, and it remains an ongoing one. So, in today's show, Mark Creedon and I are going to share with you a list of 24 things we believe you need to understand about investing, the economy, and business, and this list is based on the musings of Morgan Housell, my favorite finance writer, and I'm sure you'll gain some insights from my chat with Mark today whether you're a beginning or an experienced investor or a businessperson. 24 Lessons About Investing and the Economy Over the years one of my favorite columnists whose articles I read regularly is Morgan Housell who used to write for Motley Fool and now writes for Collaborative Fun He writes a lot about behavioral finance and why supposedly rational people act irrationally when it comes to money, finance, and business. A number of years ago he wrote a great column where he detailed 122 things everyone should know about investing and the economy and there were some great lessons to take away from that article. I've pulled a number of these out today to discuss with my business partner Mark Creedon founder of Business Accelerator Mastermind. Saying "I'll be greedy when others are fearful" is easier than actually doing it. When most people say they want to be a millionaire, what they really mean is "I want to spend $1 million," which is literally the opposite of being a millionaire. Daniel Kahneman's book Thinking Fast and Slow begins, "The premise of this book is that it is easier to recognize other people's mistakes than your own." This should be every market commentator's motto. As Erik Falkenstein says: "In expert tennis, 80% of the points are won, while in amateur tennis, 80% are lost. The same is true for wrestling, chess, and investing: Beginners should focus on avoiding mistakes, experts on making great moves." There is a difference between, "He predicted the crash of 2008," and "He predicted crashes, one of which happened to occur in 2008." It's important to know the difference when praising investors. Wealth is relative. As comedian Chris Rock said, "If Bill Gates woke up with Oprah's money he'd jump out the window." The Financial Times wrote, "In 2008 the three most admired personalities in sport were probably Tiger Woods, Lance Armstrong, and Oscar Pistorius." The same falls from grace happen in investing. Choose your role models carefully. Investor Nick Murray once said, "Timing the market is a fool's game, whereas time in the market is your greatest natural advantage." Remember this the next time you're compelled to cash out.. Jason Zweig writes, "The advice that sounds the best in the short run is always the most dangerous in the long run." Billionaire investor Ray Dalio once said, "The more you think you know, the more closed-minded you'll be." Repeat this line to yourself the next time you're certain of something. John Reed once wrote, "When you first start to study a field, it seems like you have to memorize a zillion things. You don't. What you need is to identify the core principles — generally three to twelve of them — that govern the field. The millions of things you thought you had to memorize are simply various combinations of the core principles." Keep that in mind when getting frustrated over complicated financial formulas. James Grant says, "Successful investing is about having people agree with you … later." Scott Adams writes, "A person with a flexible schedule and average resources will be happier than a rich person who has everything except a flexible schedule. Step one in your search for happiness is to continually work toward having control of your schedule." Investors want to believe in someone. Forecasters want to earn a living. One of those groups is going to be disappointed. I think you know which. As the saying goes, "Save a little bit of money each month, and at the end of the year you'll be surprised at how little you still have." John Maynard Keynes once wrote, "It is safer to be a speculator than an investor in the sense that a speculator is one who runs risks of which he is aware, and an investor is one who runs risks of which he is unaware." Our memories of financial history seem to extend about a decade back. "Time heals all wounds," the saying goes. It also erases many important lessons. You are under no obligation to read or watch financial news. If you do, you are under no obligation to take any of it seriously. Most economic news that we think is important doesn't matter in the long run. Derek Thompson of The Atlantic once wrote, "I've written hundreds of articles about the economy in the last two years. But I think I can reduce those thousands of words to one sentence. Things got better, slowly." The "evidence is unequivocal," Daniel Kahneman writes, "there's a great deal more luck than skill in people getting very rich." There is a strong correlation between knowledge and humility. The best investors realize how little they know. Not a single person in the world knows what the market will do in the short run. The more someone is on TV, the less likely his or her predictions are to come true. How long you stay invested will likely be the single most important factor determining how well you do at investing. 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 Get a copy of Mark's new book here – Have a business not a job Morgan Housell's article mentioned in the show: 122 Things Everyone Should Know About Investing and the Economy by Morgan Housel Shownotes plus more here: 24 Things everyone should know about investing and the economy | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "We've been investing and in business for long enough to know that there's always going to be things to scare you, but you shouldn't allow them to." – Michael Yardney "Don't get upset that you can't control those, just take advantage of what you can control." – Michael Yardney "At least the speculator knows they're speculating." –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.

When you're on the hunt for a new property, there are so many things to consider – location, amenities, capital growth potential and if it's your home you may be wondering is there room for a zoom room or a man cave? So, what are property buyers looking for when they search sites like domain.com.au? That's what I'm going to be chatting today about with Dr. Nicola Powell, the Senior Research Analyst at Domain. We will also be discussing other buyer trends that Nicola has uncovered in her research including what buyers are looking for in their neighbourhood, the move to regional Australia, and locations that have significantly outperformed household income. This is the type of information that will be valuable for you with your beginning or an experienced property investor, so welcome to today's show. What Nicola's Research Uncovered How will the pandemic shape consumer behaviour in the future? I think we will be looking for different things in our homes, in our real estate, and in our neighbourhood, but to better understand what people are searching for when looking for their next home I'm looking forward to my chat with Dr. Nicola Powell, Senior Research Analyst for Domain. Nicola is the leading force behind Domain's data reports that keep the Australian public up to date on what's happening in the market. She is a well-known property expert, featuring regularly on broadcast and in print media, as well as Domain's media channels. Buyer trends we discuss 2021 was the busiest first half of a calendar year on record with sales soaring above the decade average by 28% across the combined capitals and 60% in regional Australia. The Domain Buyer Demand Index for combined capitals reached a peak in March, highlighting the strong buyer competition seen earlier in the year. The peak in buyer demand occurred at different times across the capitals. Sydney and Melbourne reached a peak in buyer demand sooner than the other cities. Buyer demand in Canberra and Darwin remains higher than the other cities, reflecting the underlying demand that remains. While current demand across the combined capitals is 17% below the March peak, it has been elevated over winter. There is a strong correlation between the Domain BDI and new "for sale" listings. In Sydney, affordability has become a key restraint as buyer demand is now on par for houses and units following five months of heightened demand for houses. In a post-covid world, we've seen our suburbs become activated. The bigger the house, the greater the price growth. House prices in some of Australia's more popular school catchment areas have soared by as much as 46% over the past 12 months. Parents are paying a premium for homes in locations that make their children eligible for enrolment in high-performing or popular government schools The data suggests certain school zone boundaries can have a significantly positive effect on house prices. 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. Nicola Powell – Chief of Research and Economics at Domain Domain Group's 2021 School Zones Report Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Identifying changing property buyer trends, with Dr. Nicola Powell Some of our favourite quotes from the show: "The buyer demand peaked in March, which is interestingly when capital growth peaked." – Michael Yardney "I think I've noticed that more of us are looking back to the way previous generations lived." – Michael Yardney "It's been a cycle of property upgraders." – 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's often said there are two things that are guaranteed in life – death and taxes. While taking care of your physical and mental health can lead to a longer, healthier life and stave of the death part, what can you do to legally minimize your tax? Since tax can be one of your biggest expenses as a property investor, in today's podcast I chat with independent financial advisor Stuart Wemyss about what options are available to you. Before we get started let me give you a quick disclaimer… cheating or doing dodgy things to minimise your tax is wrong and illegal – and never worth it. Remember, when you dodge a tax return, the taxpayer takes all the risk. If you get audited, you will be liable for the interest and penalties, not your accountant. And of course, after my chat with Stuart, I'll share my popular mindset message. Building a substantial property portfolio may be simple, but it's not easy. And that's not a play on words. It's simple if you follow the systems and frameworks other successful investors have, but it's not easy because it requires money management skills, delayed gratification, discipline, resilience, and an understanding of finance, tax and the law. I guess when I put it that way it's not surprising that 92% of investors never get past their first or second property. And of course, property investment is a team sport – you need to get a good team around you including a property survey accountant, a proficient finance broker and a property strategist. In your journey as a property has a property investor, after your interest payments to text will probably be the most expensive outgoing in your property investment business and if you get it wrong it could end up being the most expensive cost. The three tax phases in a property's life Initial negative gearing phase. Income tax benefits. Land tax is often not material. Neutral phase. Property starts to produce a taxable income. Tax liability phase. After holding a property for 20 years, you should have heaps of equity in it, and it has helped you build a lot of wealth. However, a consequence of this is that (1) income tax liabilities start to become material, (2) land tax can also be quite costly Some income tax considerations To maximize negative gearing often requires putting property in the highest income earner's name. Minimize income tax later – having all property in one spouse's name could increase tax consequences. You need to think about your tax position in retirement. Land tax considerations Consider geographical diversification In VIC, land tax-free threshold hasn't changed since 2009 ($250k). Don't own property jointly i.e. one in each spouse's name is better. Use separate trusts. In NSW, avoid using a trust. Use personal name or company. QLD, similar to VIC. A personal name is cheaper than a trust. If you want to use a trust, use separate trusts. Capital gains tax considerations Sell when your taxable income is close to nil e.g. in retirement The goal is to spread the gain across as many taxpayers as possible to take advantage of marginal rates. E.g. $1 taxable gain: In one person's name = $440k of tax Distributed to 4 adults = $352k ($88k saving i.e. 20%) SMSF will pay zero CGT when in the pension phase. Finding a tax advisor We tend to think deeply about our own challenges and circumstances, so with that in mind, it's important that you use an accountant that invests in property themselves. A referral is the best way to find good advisors. Find a successful property investor and ask who they use. In business, you quickly learn that professional advice always pays for itself. Sometimes we are conditioned to reduce expenditure wherever possible. Not with tax. You want your tax advisor to spend time thinking about your situation, not feel pressured to churn the work out quickly because the margins are thin. One good financial decision will have positive consequences. But five good decisions in a row will be life-changing. It will create a lot more than five times the positive outcomes than one good decision will. That's because good decisions are a compounding asset. Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game 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: What every property investor needs to know about legally minimizing their tax with Stuart Wemyss Some of our favourite quotes from the show: "I don't mind paying a fair share of tax, so we're not talking about illegally doing the wrong thing and getting into trouble, but we don't want to pay more than our fair share of tax." – Michael Yardney "You've got to be prepared to pay for advice." – Michael Yardney "The most expensive advice you can get is wrong advice, bad advice." – 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

Since Australia's economy and our property markets don't operate in isolation, I regularly 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 in these Big Picture Podcasts with Pete Wargent. While regular listeners know Pete well, if you're new to this podcast, firstly welcome, because I see there are thousands of new listeners every month, but the reason I'm keen to discuss these matters with Pete is not because of his academic credentials as a Chartered Accountant, Chartered Secretary or because he has a Financial Planning Diploma. But I enjoy these chats because of the credible perspective Pete brings on what's happening around the world. Since our chat last month Australia's circumstances have rapidly evolved, and we've got a lot to discuss. Listen in as we discuss the big picture and then I'll share my mindset message. The Big Picture With Covid related restrictions being lifted, life is getting back to a more Covid normal, and the pent-up demand from the last couple of months should ensure our property markets continue to perform strongly moving forward. Recently Westpac upgraded its forecast for Australian dwelling prices again. They are now expecting property prices to rise 22% for the full calendar year 2021 (up from its previous forecast of 18%) and they have also lifted their outlook for next year from 5% to 8%. But how is APRA's intervention going to interfere with this? And how are all the world economic challenges including the financial problems of China's big property developer Evergrande going to affect us here in Australia There's lots to discuss this month so I'm looking forward to my regular Big Picture podcast with economic analyst Pete Wargent, a lifelong student of and commentator on our economy – hello Pete. Topics Pete and I Discuss Today: What to look forward to on the other side of lockdowns As Sydney and Melbourne open up, they should see strong boosts to their economies The IMF says that the global economic recovery is continuing, even as the pandemic resurges. Vaccine access and early policy support are the principal drivers of the gaps. The global economy is projected to grow 5.9 percent in 2021 and 4.9 percent in 2022 Chinese property developer Evergrande is in financial trouble The fallout from that looks like the Chinese government is attacking its mega-corporations and has in the process thrown all international bond debt holders under the bus. Household savings are expected to hit at least $200 billion this year, which boosts the economy The economy is also boosted by a lot of construction projects 281,000 Australians lost their jobs because of Delta, but people are starting to gear up for the reopening of their industries The combined value of all residential real estate in Australia is now over $9 trillion, up from $8 trillion in April Regulators are aiming to gently apply the brakes to the housing market, rather than slam them on. To invest in property, it's smart to continue to look for areas that have always performed, rather than the new hotspot. Resources: Metropole's Strategic Property Plan – to help both beginning and experienced investors Gets your bundle of eBooks and reports here: PodcastBonus.com.au Join Michael's Property Update private Facebook group by clicking here Pete Wargent's new Podcast Shownotes plus more here: The Big Picture – economic & property trends you must understand – November 2021 with Pete Wargent Some of our favourite quotes from the show: "While people think China is a communist country, it really isn't when you travel there and see how many private enterprises there are." – Michael Yardney "Unlike previous booms, this one is being driven mainly by owner-occupiers, not investors." – Michael Yardney "Wasn't that long ago, everyone was predicting unemployment in double-digit figures, and property values dropping 10, 15, 20 percent." – 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 would Warren Buffett say about how I approach my property investing? And why do I even care? Well… Buffett who is 90 years old is consistently ranked amongst the world's richest people, is arguably the most successful investor of the 20th century and has an estimated net worth of $107 Billion. This means, he's earned (on average) over $11 million each and every year of his life, which is thousands of times more than the average worker in Australia earns. Anyway… I think he'd be impressed with how I invest because there are some similarities in our investment philosophies. So in today's show, I'd like to look at some of Buffett's investment principles and see how we can apply them to our property investing. How does Warren Buffet Invest? Warren Buffett is arguably the greatest investor of all time. So today's I'd like to look at some of his investment principles and see how we can apply them to our property investing. Adhere to a proven strategy In my mind, you need to follow a strategy that has always worked, rather than one that works now. Invest counter-cyclically Buffett has advised: "We attempt to be fearful when others are greedy and to be greedy only when others are fearful." This is also the investment strategy of many successful property investors and has proven to be a winning formula for many who invested in property. Sometimes it's best to do nothing A great quote from Warren Buffett is… "The trick is, when there is nothing to do - do nothing." There are stages in the property cycle and times in your investment journey when it is best to sit back and wait for the right opportunities. Specialize - don't diversify Successful investors specialize. They become an expert in one area or niche and reproduce the same thing over and over again getting great results. Invest for value You make your money when you buy your property, but not by buying a bargain. Instead, you lock in your profits by buying the right property. Invest for the long term Those who have created wealth out of property took a long-term view. This doesn't mean buy and forget - you should regularly review your property portfolio. Don't invest in anything you don't understand Warren Buffett never invests in anything he doesn't understand – nor should you. Manage your risks Smart investors have financial buffers in their offset accounts or lines of credit to not only cover their negative gearing shortfall but to see them through the downtimes of the property cycle. What would Warren Buffett say about how I approach property investing? I think he'd be impressed with how I invest because there are some similarities in our investment philosophies. Clearly, I'm not in Warren Buffett's league as an investor and Buffett much prefers investing in companies than buying real estate. And of course, he really wouldn't bother himself with how I do things, so all this is hypothetical. Having said that, I've grown a very substantial property portfolio over the last almost 50 years of investing that has given me financial freedom and choices in life. 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 range of my ebooks here: www.PodcastBonus.com.au Shownotes plus more here: Why not invest like Warren Buffett? Some of our favourite quotes from the show: "You can't just go buy any property and hope it's an investment-grade property." – Michael Yardney "It's much harder to diversify when properties are so expensive." – Michael Yardney "Abundance of supply is the enemy of capital growth." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to become a more successful negotiator not only in property but in many areas of your life, you'll enjoy today's podcast which is the second part of a two-part series on how to win at auctions. Today I'm going to discuss the psychological tricks agents and auctioneers use to get the last dollar out of your pocket, in the hope that if you understand these techniques, you'll be a better negotiator not only at auctions but in all real estate transactions. After you've attended several auctions, you'll realize that a lot of the theatre and pressure is intentionally manufactured to get results. A good auctioneer can create an atmosphere of excitement and nervous competition as well as using some sneaky techniques I'm about to uncover for you that encourage businesses to pay a little bit more than they might have initially intended. To be successful, you must be aware of the little tricks that agents will use on you, and even if you're not planning to buy a property at auction you'll find that most real estate agents, who are trained negotiators, will use many of the psychological principles I'm going to share with you in all property negotiations. And as I show you how to spot these practices and how you can handle them, you'll find the lessons you learn will be helpful in negotiations in all areas of your life. In fact, my discussion with you today comes out of a chapter of my top-selling book Negotiate Influence Persuade. Auction psychology tricks: Social proof – This shows potential buyers that many other people are also interested in the property. We feel validated when we can see that others want the same things that we want. Scarcity – We value things that are (or seem to be) scarce. Auctioneers will use tactics to emphasize or manufacture scarcity and create FOMO. Reciprocity – This is just giving your customers something before you ask for anything from them. We tend to want to return good deeds. Therefore, auctioneers might give away things like free coffee or treats, hoping your urger to reciprocate later will result in a sale. Anchoring – We tend to rely too heavily on an initial piece of information. We selectively filter by the first impression. So, the first number dropped can be hard to shake and you may anchor your judgment on it. Loss aversion – The pain of losing something is psychologically more powerful than the pleasure of gaining something. Auctioneers will play on this fear of losing out. Recency bias – you're more likely to remember something that happened recently than something that happened a while Auctioneers will remind you of recent growth but not mention stagnation or loss a few years ago Auction sins to avoid: Not bidding: The way to be the winner at the end is to actually bid. Deciding on a round number: You could miss out because you're not prepared to bid an extra $500-1000. Stopping and starting bidding: Stopping to confer makes it seem like you might not have enough in your pocket to close the deal. It doesn't project confidence. Asking if the property is on the market: You're going to know when the property is on the market. You'll see signs or they'll actually tell you. But it shouldn't matter – the seller came to sell the property. All you're doing is negotiating on price. Making ridiculous offers: Starting too low may in some cases allow bidders in who might otherwise stay out and can build momentum, which you want to avoid. Pretending you're not interested: Agents want to help genuine buyers purchase, so be a stand up buyer. 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 range of my ebooks here: www.PodcastBonus.com.au Shownotes plus more here: Understand the psychology agents use on you + 6 Auction Sins to avoid Some of our favorited quotes from the show: "Again, I'm suggesting you should be aware of these techniques, so they don't catch you off guard so that you bid at auction with your head and not your heart." – Michael Yardney "Of course, in a rising market as we're experiencing in most parts of Australia, a property price achieved two or three months ago is going to be irrelevant." – Michael Yardney "Start with a strong confident bid that could knock out several other contenders early on." – 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

Around Australia, weekend property auctions have become almost a national pastime. When we're not lockdown people go along to have a sticky beak, to get an idea of the market, to fantasize about their dream homes or just to watch the street theatre unfolding before them. It's a bit like watching buskers – you see an auction being conducted you just have to stop and gawk for a while. Of course, over the last year, we have had to learn to adapt in many auctions are conducted online, but auctions are still a particularly popular method of selling properties, especially when the market is strong. For all the street theatre and entertainment value, auctions represent a lot of stress and tension for those involved so today and in the next episode of the Michael Yardney podcast, we're going to concentrate on how to win at auctions. And even if you're not planning to buy a property at auction in the near future, there will be lots of information for you as I chat with my son Bryce Yardney, and you get inside the mind of a very successful investor and buyer's agent who has bought hundreds and hundreds of properties at auction for our clients at Metropole. What to do before and during an auction: Before the auction: Preliminaries include: getting finance preapproved, understanding what ownership entity you're using to purchase, having a strategic property plan if it's an investment, understanding what you must have, what you'd like to have, and what you don't have if you're buying a home and doing due diligence on your suburb. Attend a lot of auctions to feel at home with them and watch how the auctioneers work. In particular watch the auctioneer who will be showing the property you're interested in. Determining the value of the property Understand what's comparable in today's market. End up with 3 figures: what you think the property is worth The price you'd like to get it for The stretched price you're prepared to go to The purchase price shouldn't be determined by borrowing capacity. How do you find out the reserve? It doesn't really matter. Often the auctioneer doesn't know until the day of the auction. Finalizing contract terms Check with the agent to find out how should you pay the deposit Request any changes you'd like Four things the selling agent knows that you don't The real reason the vendor is selling The price range the owner wants How many other buyers are really interested and possibly the range they are likely to pay Things that are wrong with the property Can you buy a property before the auction? In today's market, because vendors are more confident that they will sell at auction, however, there are a number of reasons why vendors may be prepared to sell before auction. Nervous vendor Sensitive sellers – Sellers going through emotional challenges like death, divorce, illness. Time-sensitive vendors – they have already bought a house and the certainty of selling their old property outweighs the potential benefit of a higher price at auction. There isn't much interest in the property The agent is in a hurry to sell You have a premium offer on the table What to do on Auction Day Show up early Note the body language of the other players Know your competition – it's the underbidder, not the auctioneer Project confidence Open high Don't procrastinate over the next bid Avoid not bidding – that's not a strategy Know what bidding strategies don't work, like moving up in small increments or trying to swoop in at the end of the auction after staying silent If it's going to pass in, make sure you are the highest bidder, as this allows the first right to negotiate with the vendor. Be prepared to miss out. Stick to your 'walk-away price. Resources: Michael Yardney Bryce Yardney – director Metropole Projects Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Collect your bundle of eBooks and reports here: www.PodcastBonus.com.au Shownotes plus more here: Hands up if you want to know more about auctions, with Bryce Yardney Some of our favourite quotes from the show: "Auctions do bring out emotion and, at the moment it's FOMO." – Michael Yardney "Most adults start with the same amount of money. They just have a different philosophy." – Michael Yardney "Poor people spend their money and save what's left, while rich people save their money and spend what's left." – 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