Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

One of the most difficult aspects of being a property investor comes from the fact that we have competing emotions depending on where you are in the property cycle. There's fear and greed, overconfidence and loss aversion, panic and euphoria. We're told there's nothing more important than being disciplined when getting involved in property and investment, but it's not easy when the emotions hang in there. One of them is fear of missing out, like a lot of people are currently experiencing as they feel the market is moving faster than they can get in. And there there's fear of getting in, which a lot of people were experiencing last year when people were talking about property Armageddon. So today I have two segments: the first one a chat with property researcher John Lindeman and we have a little bit of a general chat about FOMO and what you should watch out for. Then I'll share the ten FOMO mistakes I'm seeing many property investors make, to ensure that you don't make them as well. So, today's podcast will be useful for you whether you're looking to get into property or you're already in property anyway, because as we go through these things, there are a couple of great fundamentals and lessons I'd like you to know. Some of the Topics John Lindeman and I Chat About: FOMO is an emotionally based desire. We don't want to miss out on something someone else has. It's similar to greed. You have to respect the market. When things settle down, some people will find they bought the wrong property or overpaid. FOMO can move a boom to a bubble when too many investors become involved. That's why it's better to buy in areas that are mostly owner-occupiers. There will always be another opportunity, so buy with your head, not your heart. Big FOMO mistakes John Lindeman currently sees: Emotion that takes over decision-making. Finding it difficult to wait. Have rules that can help you rationally you decide which property to buy so that emotion doesn't take over. 10 FOMO Mistakes Not really understanding the nature of the property cycle You need to remember that the property market always moves in cycles. So after a boom, you will see a downturn. Acting with heart and not head Allowing your emotions to cloud your judgment means you are more likely to over-capitalize on your purchase, rather than negotiating the best possible price and outcome for your investment goals. Diving in or Dithering FOMO causes some investors to act too impulsively, while others freeze up out of too much caution and never act at all. Not adhering to their property strategy Successful wealth creation through real estate requires you to set goals, determining where you want to end up, and then devising a cohesive plan to get there. Changing their investment strategy. If your aim is to gain financial freedom through property investment this is a critical time to stick to a proven strategy. Speculation over Patience Property investment is not a get-rich-quick scheme. Doing it successfully requires patience. Not having a finance strategy. Strategic property investors have a finance plan to allow them, not just to buy one property but the next and the next. Compromising on Location A property's location will do 80% of the heavy lifting when it comes to capital growth, so don't compromise on it. Taking advice from the wrong people You should take advice, but from proven experts, not just anyone with an opinion. Buying the wrong property Don't make a snap decision on the wrong property. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us John Lindeman – Lindeman Reports Get our special bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Warning – Avoid these FOMO errors investors make in a hot property market; with John Lindeman Some of our favourite quotes from the show: "It's owner-occupiers that basically create the markets, about 70% of purchases, and it's investors who push it up to its heights - the booms, and even sometimes the bubbles and then also create the slumps" – Michael Yardney "Currently I'm seeing some buyers so worried the market is going to pass them by that they're compromising their selection criteria just to get in the market." – Michael Yardney "By approaching property investment with patience and persistence, you will gain far more success and wealth than if you seek out the next big thing." – 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

You heard me say it before - property investment is a game of finance with some houses thrown in the middle. But the rules of the game are changing in front of our eyes, so today I'd like to explain what's going on with lending, so you have a better chance of the banks saying "yes" to you and lending you more money, with leading finance strategist Andrew Mirams, director of Intuitive finance. I plan to ask him a number of the common finance questions we're asked when clients come to see us at Metropole, but I'm also going to ask Andrew some of the questions you probably wouldn't even think of asking but are important to know the answers to in today's financial climate, so that at the end of today so you'll have a better understanding of how to approach the game of property finance. The changing game of property finance with Andrew Mirams What's actually happening in the world of finance? Are the banks open for business? The banks are always open for business. They've actually been pretty good through the pandemic. They're working on more responsible lending. Are they still talking about loosening the purse strings a bit? Lending restrictions have been over the top a little bit and probably needs more scrutiny. Why is it taking longer to get preapprovals? Applications to banks have gone up a lot mostly due to first-home buyers and now investors are coming back as well. Also, lots of workforces are offshore We discuss some preapproval conditions borrowers need to understand It's important to understand where banks are willing to lend – they restrict lending for certain postcodes and types of property Bank loan officers don't necessarily understand business. You can't go to a bank to get property advice The right time to invest is when it's right for you Interest rates are important, but the right loan rate is more important. Online lenders aren't necessarily the right answer. A finance strategy is much more than an interest rate or fees. Banks are looking at your serviceability as much as your equity. Loan insurance can entice banks to increase the loan, but it protects the bank, not you, and loan insurance costs. So, you have to find a sweet spot that gives you the amount you need without paying too much for the loan. 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 Andrew Mirams Director Intuitive Finance Shownotes plus more here: Understanding the changing game of property finance with Andrew Mirams Some of our favorite quotes from the show: "I believe it's important to have a preapproval in place before you go out into the market." – Michael Yardney "I don't think you should assume the bank is on your side." – Michael Yardney "If you do the easy things now, you're going to have a hard life later; if you do the hard things now, you're going to have an easy life later." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We're halfway through 2021 now so it's a good time to reflect back on the year so far and then look forwards to what's ahead. Property values across our capital cities have experienced double-digit growth already this year, in all capitals other than one. And despite the Covid concerns we're experiencing, there's plenty more growth to come. The surge in property value has caused the property bears to go back in their caves and hibernate and our major banks have done an about-face and are now forecasting 20% to 30% rises in property values around Australia this cycle with strong growth continuing for some time. And the economic Armageddon predicted by some didn't eventuate and we didn't fall off the assorted cliffs that were meant to litter our path along the way. So, in today's podcast, I'm going to have a chat with Australia's leading economist, Dr. Andrew Wilson, as we look back on what's happened to price growth so far and give you some thoughts on what's ahead. This year's property growth and what's ahead No one would have predicted the unprecedented record-breaking levels of high house price growth in the first half of 2021. The outstanding performer so far this year has been the Sydney property market where house values have increased 17.8% this year alone. In fact, Sydney home values have increased 24.2% in the last 12 months. Sydney apartment values also increased, but not as much - increasing 7.3% in the last six months and 9% in the full year. Over the six months of 2021 so far: Melbourne property values have increased 11.8% Brisbane values were up 10.7% Adelaide values rose by 10.4% Perth values increased by 8.1% Now it's important to remember the capital city of values set their previous records in September 2017 and today values are only around 10% higher than previous records. In other words, the market did but it always does, operate cyclically with periods of flat or no growth and even periods with property values drop. How FOMO Affects the Markets The other critical factor, of course, is fear of missing out (FOMO), a self-fulfilling cycle where those yet to buy in are motivated to do so by the prospect of having to pay more to do so at a future date. None of these factors look likely to change over the rest of 2021, and it's likely that house prices could rise by another 10% before the end of next year. Of course, this is just average price growth, and the upper end of our property markets are outperforming cheaper properties, and for the last month, capital cities are outperforming regional Australia which performed strongly during the Covid lockdowns last year. In due course, the property markets will slow down as affordability becomes an issue for some homebuyers and investors. Regulation appears to be imminent. Historically, surging house prices have tended to lead to a deterioration in lending standards and risks to financial stability, giving regulators impetus to tap on the brakes. The RBA has given fairly strong indications that they won't use monetary policy to this end, at least not yet, so expectations are instead that they and APRA will look to macroprudential controls such as increased interest rate buffers, and limits on high loan-to-valuation and high debt-to-income ratio lending. Government stimulus measures will continue to be wound back. HomeBuilder, a major driving force for the market through the pandemic, has now ended, and smaller state housing incentives may also be retired over the coming months. More broadly, the indirect influence of fiscal latitude will gradually be reduced as governments seek to move their budgets back towards balance. Low immigration will continue to be a drag. Restrictions on migration have cut underlying demand for housing by around 100,000 dwellings (nearly 50%) this year, and this is one outage caused by the pandemic that won't be switched back on overnight. Even with a vaccinated population, borders will probably be opened gradually with quarantine requirements remaining in place for some or most arrivals. Immigration will recover slowly. But currently, with the lack of new apartment construction it's likely we will have a looming undersupply of apartments once our borders are open. In my chat with Dr. Andrew Wilson as we discuss how despite the doomsayers' dire predictions our housing markets remained resilient last year, but growth was stifled by lack of consumer sentiment The markets turned in October 2020 and have gone gangbusters over the first half of 2021 Those who heeded the negative nellies lost out, while home buyers and property investors who took a long term view have already enjoyed significant capital growth. Listen as we discuss how each state government introduced their own set of temporary measures to stabilise the rental markets, prevent evictions and support tenants in hardship. Rental vacancies in our big capital city CBD's spiked due to the lack of overseas students, no overseas tourists using Airbnb and decreased local tourism While rentals initially fell, vacancy rates, especially for houses are now falling and the rental markets are tightening. Resources: Watch the Property Insiders Video of this session here Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Guest: Dr. Andrew Wilson, chief economist of My Housing Market Subscribe to my weekly Property Insider video with Dr. Andrew Wilson here- www.PropertyInsiders.info Collect your bundle of eBooks and reports- www.PodcastBonus.com.au Shownotes plus more here: Amazing double-digit growth in property so far this year, with Dr. Andrew Wilson Some of our favourite quotes from the show: "When people feel about their jobs, when they feel secure about their financial future and employment, they make big investment decisions like buying homes." – Michael Yardney "Our economy over the last year experienced that V-shaped recovery that we all hoped for, but not many of us expected." – Michael Yardney "Most successful people fostered accomplishments in their lives by diligently doing things every day, but they also did it by diligently avoiding certain things." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

When planning to invest in property, people tend to think about "where should I buy, what should I buy, how much can I afford?" But often they don't think about "who should I ask for advice?" Since investing in property is a significant financial and personal decision, it's really important to make wise decisions, and it's really important to get good advice early in the piece, because getting it wrong can result in significant financial loss, emotional stress, and a huge lost opportunity. And if you're in the middle of your property investment journey, it's still critical to ask for advice to make sure you're heading in the right direction. So, who do you ask for advice? And with so many mixed messages and vested interests out there, who can you really trust? Well, that's the topic I discuss today with Brett Warren, National Director of Metropole Properties and I hope at the end of the today's show, you'll have more clarity in your options and who you can ask for advice, and what you can and can't expect from your advisors. And of course, I will also share my regular mindset message with you. Who Do You Ask for Property Advice? Our property markets are booming at present but we know that now all markets will perform the same over the long term. So as a property investor who do you turn to when looking for advice? A better question may be - with so many mixed messages and vested interests, who can you really trust? Who investors could turn to for property advice: No One— many beginning investors make this mistake. They think they already understand the market. Friends or family— People do this for understandable reasons, but unless you have millionaires in your family, it's probably a bad idea. A real estate agent— It's important to remember, agents work for the vendor selling the property, not you. A mortgage broker— Brokers are helpful in the finance areas, but not experts on investment-grade properties An accountant— You should talk to an accountant! But about things like tax matters and structuring, not the property market. Financial planners— Financial planners sell financial products, but most are not able to advise on real estate. A property marketer— These are salespeople who really selling "product" for a property developer who is most likely going to make the biggest profit out of the deal. Investment seminars and workshops— Is the person leading the seminars an actual expert who made their money in the market? Or do they only make money by teaching others? It's an important question. A property mentor —It's important to have mentors. Just be careful who you choose and ensure they have achieved the results you want to achieve. A buyer's agent— These can be a great help in selecting the right property, but they don't devise a plan that takes into account your family's future needs and your risk profile. A property strategist – Someone who can help you grow, protect and pass on your wealth using property as a vehicle. What a good property strategist can do for you: Get to know their clients' hopes and fears to help them achieve their long-term financial goals. Help remove his client's anxiety by simplifying the complex. Develop a long-term relationship with the client and help them see several steps ahead. Recommend proven strategies that have always worked. Offer a list of potential property options and refer their clients to a buyer's agent who is part of their team. Help their clients select an investment property that is the highest and best use of their funds. Help clients avoid big mistakes. Provide perspective, insights, and often optimism. They will also advise their clients to invest their money the way they do themselves. Regularly and objectively assess the performance of their property portfolio Some things a property advisor can't really do: Predict the future. Find the next hot spot for you. Pick the best time to purchase an investment property. 4. Help you get rich quickly or achieve extraordinarily high returns without taking on extra 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 Get your bundle of eBooks and Reports at: www.PodcastBonus.com.au Brett Warren – Director of Metropole Property Strategists Shownotes plus more here: The right and wrong people to ask for property investment advice with Brett Warren Some of our favourite quotes from the show: "Many beginning investors think they understand real estate because they've lived in a house, they've rented a house, they've rented an apartment." – Michael Yardney "In my mind, it is critical to have a trusted advisor when making property decisions. It's just too hard to do it on your own." – Michael Yardney "A property advisor should actually be part of your long-term journey. It's a long-term relationship." –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

The Australian housing market is going gangbusters and all the signs are the boom is here to stay for some time. But how do you profit from this current growth cycle? In today's podcast, I discuss 6 property trends that you're going to see – and hopefully take advantage of – in 2021. Then, in the second half of the podcast, I chat with property researcher John Lindeman, who will teach us how to profit from this stage of the growth cycle, because if history repeats itself, lots of investors will unfortunately lose money instead of profiting. My aim is to ensure that at the end of this episode you'll have more direction and certainty to take advantage of our property markets over the coming year. 6 Property Trends to Look for in 2021 Demand from Homebuyers Will Remain Strong: People have saved money, borrowing costs are lower than they've ever been, and interest rates won't rise for a while. Plus, COVID is under control. These factors will inspire more people to buy and FOMO will continue to drive homebuyers into the market. Investors Will Eventually Squeeze Out Homebuyers: Increased competition and rising property values will edge out first-time homebuyers as more investors get into the market. Property Prices Will Continue to Increase: Consumer confidence, low interest rates, economic growth, and a favorable supply and demand ratio will all help drive property values. However, some segments of the market will continue to struggle. Buyers Will Pay a Premium for the Right Neighborhood: People want 20-minute neighborhoods, with the ability to live, work, and play all within a short distance of each other. And buyers will be willing to pay more to get that. Expensive Properties will Outperform: Higher-end properties are leading the way in growth. Upgrading Will Be Common in 2021: After lockdown, small apartments will seem to confine, and people who a deposit by not traveling or spending much on entertainment during the quarantine will be eager to upgrade to a bigger and better place, especially given the ease of borrowing money. How to profit from this growth cycle Profiting from this growth cycle isn't as easy as it seems. Property researcher John Lindeman reminds us of Warren Buffet's famous two rules that all investors must follow if they want to ensure their success. The first rule is never to lose money and the second rule is never to forget the first rule. But if history repeats itself, some investors will lose money even though overall our property markets are booming, Today, John Lindeman and I discuss the things you need to know in order to profit instead of losing money. Subjects John Lindeman and I discussed today: Investors need to make sure they're buying in markets where the growth is yet to come. You can't measure growth by the length of time that price growth has been occurring or the amount of growth that has taken place. Growth is revealed by the types of buyers creating the demand. First home buyers, upgraders, downsizers, and investors have different motives and limits when it comes to buying property If we know which group is doing most of the buying, we can estimate when the growth is likely to end Investors are motivated by profit. Owner-occupiers are motivated by affordability In the current market, most buyer demand is being generated by owner-occupiers, not investors Investors can take advantage by buying property in areas that have not yet experienced growth but have the potential to. As first-time homebuyers reach affordability ceilings are reached and their growth slows down, growth will ripple to more affluent areas as upgraders take advantage of the market. So far, not much of this has happened yet. However, this means that suburbs in desirable locations are likely to be next to rise In general, it's better to be in an area that's going to be stable. You also want an area that's in continuous demand. Capital growth has been stronger in the CBD and flattened out the further away you get from the CBD. It was predicted that a lot of people would move to the country post-lockdown, but that hasn't panned out. Once the pandemic and the lockdowns passed, people realized they didn't really want to relocate to the country and away from their work, family, and friends. Many banks, economists, and other analysts get their forecasts wrong last year. They looked at historical events like the Great Depression and the Global Financial Crisis, saw those caused property markets to slump, and assumed the pandemic would have a similar effect. That assumption was incorrect. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us John Lindeman – Lindeman Reports Get our special bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: How to Profit from 6 Growth Trends in 2021, with John Lindeman Some of our favorite quotes from the show: "If Coronavirus has taught us anything, it was the importance of living in the right property in the right neighborhood." – Michael Yardney "Upgraders are now seeing the value of their home increase, and a lot of people after COVID, "I deserve a change. I'm looking for something different."" – Michael Yardney "You've really got to see property as a long-term 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

No one likes to fail. In fact, most people would do almost anything to avoid failure. So, do you want to know the real secret to success? It is not dedication, commitment, hard work, smart work, passion, or even habits. You're not going to like the answer. I've heard it said that the real secret to success is managing your failures. In this episode, we'll take a look at some of the lessons we can learn from failure. Failure teaches you that success is never guaranteed. Like Winston Churchill once said, success is moving from failure to failure without loss of enthusiasm. Failure isn't final. Failures happen, but they're no reason not to start again. Successful people have lots of failures on the road to their successes This too shall pass. Failure isn't fun, but it's also not permanent. No matter how much it stings at first, you can move past it. Failure forces you to embrace change. When you go through failure, this is basically the universe telling you that there is something you should be doing differently. Failure can be a great source of motivation. For people with the right mindset, failure can be a great source of motivation. Failure teaches you to stay humble. Failure isn't unique. Everyone experiences failure, even the most successful people you know of. Criticism doesn't equal judgment. Time is the greatest teacher. Rejection is a powerful tool. You can learn valuable lessons from failure. Failure teaches: Creativity. If you fail by taking a route traditionally associated with success, you might have to embark on a novel path when you try again. Who to trust. When someone – even a friend or family member who you thought you could trust – plays a role in your failure, you learn not to trust them so readily in the future. Value. Failure is a chance to take another look at your value and how you can best present it. You to listen to yourself. Tune out any non-constructive, negative feedback that comes from failing and focus on building self-trust. Over time, failure can build resilience, which is why the pain is a little less each time it occurs. What to do better next time. If you can identify the steps that led to your failure and why they had the results they did, you can form a strategy for future success. 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 Get a heap of special reports and eBooks here- www.PodcastBonus.com.au Shownotes plus more here: 10 great lessons successful people have learned from failure with Mark Creedon | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "I've often said I'm a real success at failure, but it really does come down to resilience." – Michael Yardney "If you get it right first time as a property investor, you probably think you're smarter than you are." –Michael Yardney "Successful people revel in other's success." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

For Australians, real estate is something of a national obsession. That's understandable given our home is often the biggest investment most of us will ever make. I've been investing in residential property for almost 50 years now, and throughout those decades there have been doomsayers and scaremongers claiming the Australian property market was a bubble waiting to burst. Reputations were staked on it, bets have been made and the media has offered these property pessimists more than their fair share of air time. Yet the crash never arrived. Instead, our property markets are booming with a number of capital cities already exhibiting double-digit capital growth this year. And Australia's economic growth has also confounded the pessimists as we experienced the "V-shaped" recovery that, to be honest, very few expected. While much of the commentary is about the micro factors – what's happening on the ground in our property markets - I like to regularly get together with property commentator Pete Wargent in these big picture podcasts to look at the macroeconomic factors affecting our economy and the property markets to help give you some more clarity about what the future holds so you can make better investment and business decisions. The Big Picture with Pete Wargent Since last month Australia's economic recovery has continued to unfold, more jobs have been created, and the property market continues to grow. Australia's economy recovery The latest GDP figures show that Australia has enjoyed a V shape recovery, though that's ancient news now. Our economic output is now higher than it was before the COVID-19 recession hit, with easy monetary policy, booming commodity prices, demand for resources from the rampant Chinese economy and fiscal policy stimulus all playing a part. The public service is doing okay while the private sector has borne the brunt of the Covid 'recession'. Australia's robust economic recovery has merited an upgrade to a "stable" footing from ratings agency S&P Global. This has been matched by enthusiastic bets on interest rate hikes. As the Reserve Bank of Australia's July meeting approaches, when the central bank will review its quantitative easing program. The Reserve Bank at this month's meeting reiterated its position that the cash rate is "unlikely" to rise until 2024 at the earliest. Biggest lift in business investment in 9 years New business investment (spending on buildings and equipment) rose by 6.3% in the March quarter. This together with the strong construction industry points to strong overall economic growth. Why jobs confidence is a big deal Policymakers are pushing hard for a strong improvement that will see a return to 'full employment that brings an end to the persistently low wages growth that has held the economy back over the last decade. There are important implications from Aussies feeling secure about their jobs: Catalyst for spending Additional support for housing demand Budget deficit The economy is in better shape than expected around six months ago and therefore so is our budget. This gives the government options to provide more assistance to have individuals and businesses. The recovery has led to a 4% improvement in the deficit so far this year. Why Australia needs higher-paid migrant workers Recently the Grattan Institute released a report into Australia's migration policy suggesting we focus on increasing the number of young skilled workers, rather than the government's current emphasis on older less-skilled migrants. Grattan suggested this would help boost the economy by as much as $9 billion 8th consecutive current account surplus In the March quarter, the current account surplus widened to 18,300,000 representing 3.5% of GDP. This is the largest surplus on record matching to 3.5 achieved in June 2020. Who needs China when Australia's got Tesla: Why do we need China when we have companies such as Tesla knocking at our door? And don't let Elon Musk's often 'loopy' and weird behaviour distract you! Tesla is a business with a huge future, being a first adopter of the electric car and the biggest proponent of big batteries as an alternative to the power delivered from the grid. A Tesla electric vehicle (EV) has $5,000 worth of minerals and metals in it and Australia supplies 75% of the lithium and 33% of the nickel in these Tesla cars of the future. Resources: Metropole's Strategic Property Plan – to help both beginning and experienced investors Gets your bundle of eBooks and reports here: www.PodcastBonus.com.au Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: The Big Picture | Economic & property trends you must understand – June. With Pete Wargent Some of our favorite quotes from the show: "I guess it's fair to say it's probably always been about jobs, but at the moment, the focus is on our labour markets." – Michael Yardney "We've actually got big war chests, and the more comfortable we feel about our job security, the more likely we'll be to spend it." – Michael Yardney "Until the vaccinations are rolled out, everyone's had their second shots, or at least enough of us have, I can't see the borders opening." – 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. 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 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 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

You're guaranteed two things 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 everyone wants to pay less come tax time, in today's podcast I chat with independent financial advisor Stuart Wemyss about what options are available to you. Minimizing Your Tax Tax isn't necessarily a bad thing. If you're paying tax, it means that you are making money. But of course, there's no need to pay any more than you legally have to. Minimize your risk Stick within the letter of the law, but explore legitimate ways to minimize tax liabilities Many more aggressive tax minimizing measures delay tax rather than permanently reduce it Implementing these strategies may create costs (tax advice fees and documentation) and complexities Sometimes, it's better to keep things simple Minimize tax pre-retirement Personal exertion income earners have few avenues to minimize tax You can use negative gearing and/or contribute into super, but that's about it Contribute to your super After 1 July 2021, individuals can contribute up to $27,500 per year into super and claim a tax deduction for this expense Borrow to invest Borrowing to invest (to generate capital growth) often makes good sense, especially if you are more than 10 years from retirement Minimize tax on investment returns If there are not many avenues to reduce the amount of tax you pay on your income, then at least make sure you don't pay too much tax on your investment returns. Invest in assets that generate more capital growth than income Make sure the investments are owned in the most tax-effective way Minimize land tax Map out a plan and follow expert advice to minimize land tax as much as possible Consider capital gains tax Self-employment gives you more options Make sure that your business is structured correctly Stuart's new podcast, The Holistic Accountant, is a good way to learn more about this You should aim to pay zero tax in retirement A couple can have up to $3.4 million invested in super, and not pay any tax If you plan well, it is a reasonable expectation to pay little to no tax in retirement If you can't save tax, focus on investment returns If you earn money, it's likely you will have to pay your fair share of tax. That's life Cheating is never worth it The ATO is cracking down on dodgy deductions and the penalties can be up to double the tax plus interest Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Shownotes plus more here: How to Minimize Tax – Your Largest Expense, with Stuart Wemyss Some of our favourite quotes from the show: "Tax isn't necessarily a bad thing. No one likes paying it, but if you're paying it, I guess it means you're making money." – Michael Yardney "If you're going to own a property investment business, you should actually own the best assets you can in best locations you can, and land tax unfortunately is a cost of doing business." – Michael Yardney "Those who invest in their abilities their entire lives, they become the beneficiaries of luck." – 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