Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

What's ahead for property this year? Is this the end of interest rate cuts? We started this year with optimism, but now we have our fair share of turbulence. We have the coronavirus epidemic, the bush fires, political tensions overseas. How will these affect our property markets and our economy? Those are some of the things we're going to talk about today with Dr. Andrew Wilson. We're also going to discuss auction trends, the home loan trends, what's happening to interest rates, and what's happening to inflation, as well as employment, consumer confidence, and our housing markets. There's a lot of information in this episode that will make you a more informed property investor. We're just over 10% into the year 2020, and we've already had our share of X factors that have upset the forecasts. Auction trends Let's start with property trends. A number of data sets are suggesting property values have continued rising around Australia. The property upturn which started in Sydney and Melbourne in the middle of last year has become more widespread with housing values rising in January across every capital city. There's plenty of competition among buyers. There are not only higher clearance rates, but there are also higher numbers of properties being offered for sale. Median prices are growing strongly, but they're a bit of a lagging indicator. Auction clearance rates are a more in-time indicator of market sentiment and depth. Home loans surge A lot of fuss has been made of the December home loan figures which confirm the revival of our housing markets. However, they still remain well below the figures of 12 months ago, particularly for property investors. On the other hand, ending for first home buyers went against the trend, increasing by 4.6% over 2019 compared to the previous year. Is this the end of rate cuts, or are the RBA just holding off? The Reserve Bank of Australia decided in the first week of February to keep interest rates on hold. The board noted that previous outbreaks of new viruses had "significant but short-lived negative effects" on economic growth in the economies at the centre of the outbreak. Headline Inflation rising - but still subdued Headline inflation was up to 0.7% for the quarter, and the annual rate of inflation sits at 1.6%, which is significantly below the 2-3% target range the RBA is aiming at. More economic headwinds – tragic bushfires and coronavirus. The Australian economy posted its worst performance since the global financial crisis in 2019. The big macro stories affecting our economy have come so far this year have been: The USA China Trade Pact Brexit The Corona Virus The Australian bush fires. The coronavirus is creating a second wave of economic disruption in Australia. The RBA minutes stated that the coronavirus will have a bigger impact on the Australian economy than SARS. Good news for employment Unemployment fell at the end of last year to 5.1%. But there is still spare capacity in our labor markets with many people who are in part-time jobs being underemployed. A slump in job advertising over the past year and slow economic growth suggest the unemployment rate could go even higher. Consumer confidence Three interest rate cuts and reductions to personal income taxes have failed to lift the mood of consumers, who appear more content in paying down debt and saving rather than spending the increase to household incomes. Business confidence is also weak as business conditions struggle below average, raising the risk of slowing employment growth and continuous sluggish business investment. Our Housing Market Our forecasts for 2020 are that property values will be higher at the end of the year than today with well-located Sydney and Melbourne properties worth 10% more than they are today. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Join us at my annual Property Market and Economic Update – come as my guest using the Coupon Code: PODCAST Click here for details Show notes plus more here: What's ahead for property this year? How will the corona virus affect our economy? Some of our favourite quotes from the show: "Auction clearance rates are a more in time indicator of the market." – Michael Yardney "In the context of what's happening in the world, those aren't bad economic figures if we could achieve them." – Michael Yardney "I guess the elephant in the room is the coronavirus. It's still a developing story and even the RBA stated in its minutes that it will have a bigger impact on the Australian economy than SARS." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you're looking for more money, better success in property investment or other areas of your life, or more wealth, this episode is for you. I have three messages for you today. We're going to discuss one thing you're going to have to change to become a more successful investor – and it's not what you think. I'm also going to share what is the right type of property investment for this stage of the cycle. Then, in my mindset moment, I'm going to explain an important trait of successful people. And if you can pick up on it, there's no reason why you can't be successful as well. The One Thing You Need to Change for Investment Success One of the first steps in change is changing your thoughts. How do you think about money, success, and prosperity? For many of us, our thoughts revolve around fear, scarcity, and limitation. If you think about fear, scarcity, and limitation – what do you achieve? Remember: Your thoughts lead to your feelings – your feelings lead to your actions and your actions determine your results. So, money is a result. Wealth is a result. These occur in your outer world but are determined by your thoughts and feelings – your "inner world." It's not what you don't know that prevents you from succeeding; it's what you think you know that isn't correct that is your greatest obstacle. The problem is for many Australians their thermostat is not set for wealth. Firstly, we need to change the way we think about ourselves. We need to see ourselves as a wealthy person, as a wealth attractor and a wealth creator. This means we may need to change some ingrained thinking patterns. Or overcome some negative ways of thinking that have developed as a result of past experiences. Most successful people all share one critical characteristic – the trait of adaptability. They embrace change. They look for opportunities to expand and learn. Another common characteristic of successful people is that they have a mentor and they belong to a mastermind group. They hang around other like-minded successful people. Results change when people change their way of thinking. And doing things differently first requires thinking differently. If you change your thinking, you will change your actions and if you change your actions – results. What's the right investment for this property cycle? We're well into a new property cycle. And with the property market on the move, it's becoming apparent that more and more investors are looking for the next hotspot. The problem is that hot-spotting is about short term speculation, not long-term wealth creation. Most property investors are looking to build an asset base so that one day they can replace their personal exertion income with their property income. But the key to building a substantial property profile is to use the first property to leverage into your next property, then using those two properties to leverage into more investments, and so on and so on. And you can only do that by investing in the type of locations that consistently provide long-term capital growth. But by definition, hotspots are not that. They cool off as quickly as they heat up. If you're into investing in short-term trends, being right isn't what's important; it's being right at the right time that counts. Very few can do that, so the history of investors trying to find the next boomtown is littered with people who get the story right and the outcome wrong. Instead, I buy in areas that have a proven long-term history of outperforming the average capital growth and that are likely to continue to outperform, because of the demographics of the people living in the area. Hot spotting is virtually the opposite of this sensible, not-so-sexy, tried and tested system for successfully building a property portfolio. There are some principles that can be applied whenever you consider investing in real estate, to ensure that you are as comfortable as possible and exposing yourself to the least amount of risk. These include: There is no one property market. Instead, there are many submarkets around Australia. Each state can be at a different stage of its own property cycle and within each state, the markets in different areas are segmented by geography, price points, and type of property. Rather than trying to time the market, buy the best assets you can. Owning an investment-grade asset that grows at wealth-producing rates of return will see your portfolio outperform over the long term. Strategic property investors manufacture capital growth through property renovations or development. Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behavior of other investors. While the long-term performance of property is influenced by the fundamentals, its short-term performance is much more affected by market sentiment. Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions. Don't make 30-year investment decisions based on the last 30 minutes of news. Recognise that property is a long-term play. You need financial buffers to help you ride the property cycles because the cycle will keep recurring. Links and Resources: Michael Yardney Metropole Property Strategists Michael Yardney's Mentorship Program Register your interest to join us this year at Wealth Retreat 2020 Join us as our guest at our annual Property Market and Economic Update 1 day trainings - - use the coupon code PODCAST and come as our guest. Show notes plus more: The right investment for this stage of the property cycle | 1 thing you'll need to change to become a successful investor Some of our favourite quotes from the show: "The problem is in terms of wealth creation, it's not what we know that's holding many of us back. It's what we think we know that isn't so, that isn't right, that is holding us back." – Michael Yardney "If you continue to do the things you have always done, you're going to continue to get the results you have always achieved." – Michael Yardney "A side effect of doing challenging work is that you're pulled by the excitement and pushed by the confusion at the same time." -- Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you're in business, and even if you're not, today's show about the common mistakes businesspeople and entrepreneurs make will be useful for you. If you think about it, we're all in our own little businesses: the business of property investment or the business of improving ourselves. Hopefully, this discussion will help you avoid making some of these common mistakes. Top 7 mistakes Entrepreneurs make Expecting success right away – it's harder than most people think Underestimating the amount of time it will take and the cash that will be needed Providing a product or service that is their passion, without making sure there is a viable market for it. Confusing a good idea with a good opportunity Is there a big enough market? Is there a sufficient margin? Opportunity exists at the intersection of a deep customer need or problem and your ability to meet that need Not understanding the importance marketing If you build it, they will come is the wrong idea. You need to invest heavily in marketing – but you also need to understand it even if you outsource it USP– they must differentiate themselves Social media Building a list People problems Having the wrong business partner Hiring the wrong people Not firing the wrong people fast enough Not understanding how to manage teams Letting perfection get in the way of progress: They wait for the "right " time. There rarely is such a time They wait until everything is perfect or 100% in place. This can lead to analysis paralysis. Gen Colin Powell applies a 40/70 rule They let go too soon or don't want to get their hands dirty. You have to work in your genius and focus on the highest and best use of time BUT You have to know how things get done in your business, Sometimes you have to be able to dive in and make things happen….there is a difference between delegation and abdication. Trying to do it alone – need a coach, mentor, mastermind group 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 Show notes plus more here: Here's How to Avoid the Top 7 mistakes Entrepreneurs Make | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "Unfortunately, life is hard. Business is difficult. Retaining clients is difficult. Making a profit isn't easy. Because if it was, the rewards on the other side wouldn't be as valuable." – Mark Creedon "What I'm suggesting is the list needs to be yours – not on Facebook, not on Twitter, not on LinkedIn, because over time they change the algorithms and you may lose access to those people." – Michael Yardney "One of the other aspects of managing staff as your business grows is that you may well be a good practitioner at your skill, whether it's in sales or the craft or the profession that you're in, but that doesn't actually translate to being good at human resources and managing people." – 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 the last few decades, Baby Boomers have been driving our economy and our property markets. But interestingly, they're not doing what everyone thought they were going to do. They're redefining retirement. And this is going to have significant implications for our property markets and on our economy and businesses. So, if you're interested in property investment or if you're a business owner, this is going to be an enlightening show. I'm speaking with Simon Kuestenmacher, a leading demographer, about how baby boomers are redefining retirement, and what that means to you and to the property market. Demographics have always been a major driving factor of our economy and our property markets. And Baby Boomers have dictated many trends because there are so many more Baby Boomers than previous generations. The last Baby Boomer will hit retirement age by 2029. But that doesn't mean that they'll all be retired. There's been a big shift in terms of how people are defining retirement. More and more people are staying in the workplace longer. Some are doing so because they find the work engaging and enjoy it. We also see more and more people who are being forced to work longer. These are usually people in low-income jobs, which makes clear the crucial importance of lifelong retirement planning. There are a number of different ways to plan financially for retirement. Superannuation is one way. Owning your home is another. Investing in residential real estate or shares is one more way to plan for retirement. There are four major tribes of Baby Boomers moving into retirement: The Lifestylists – People between 55-64 years of age who prep for retirement. They tend to slide into retirement, rather than jumping into it all at once. The Active Retirees – People between the ages of 65-74 who are still somewhat linked to work. They want to stay active and in the family home as long as possible. They only move when they are forced to. The Downsizers: They are 75-84 years of age. At this stage, they are slowly starting to prepare for old age. Physical problems force this group to slowly start to change their housing behavior. Old Age: They are 85 or older. Statistically speaking, they are quite likely to have lots of physical ailments. However, they still want to live as independently and as healthily as possible. The workforce as a whole is shifting more and more toward knowledge work. At the same time more and more repetitive knowledge tasks are being taken over by computers. That leaves humans with the tasks of socializing and networking. There are also lots more jobs in the low skilled and unskilled sectors. But no new middle-skill jobs. The workforce is being hollowed out. Links and Resources: Michael Yardney Metropole Property Strategists Simon Kuestenmacher - Director of Research at The Demographics Group Join us at my annual Property Market and Economic Update – come as my guest using the Coupon Code: PODCAST Click here for details Show notes plus more here: Here's how Baby Boomers are Redefining Retirement Some of our favourite quotes from the show: "Middle ring suburbs are where we need more medium-density development, but it's really hard to find the land or to make the economics work." – Michael Yardney "As always, baby boomers are going to be an important factor in our economy and in our property markets moving forward." – Michael Yardney "I really do think everyone's doing the best they can." – 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 the million-dollar question so many investors ask: what's a better investment, the stock market shares or property? Outside superannuation, property and shares are the two most common ways Australians build wealth. Some find deciding which to invest in is a bit of a hard decision. If someone tells you only shares or only property, run away fast. That probably means they have a vested interest. You'll find that in different stages of your life, or different times when you need asset growth and cash flow, different types of investments will be more suitable for you. In today's show with our regular guest Pete Wargent, we'll tell you the pros and cons of both asset classes. We're also going to explain when they're right for you, and when you shouldn't be investing in a particular asset class. Property or Shares? Property and shares are different but complementary asset classes. While their long-term performances may be similar, they are very, very different as asset classes. The tax system in Australia tends to favour people investing in property. Property You can leverage against property. The extra leverage you can achieve with property magnifies your returns if you've got a long enough time horizon Property is an imperfect market: in property you can have an edge related to your knowledge, your information, and your contacts. The property market isn't controlled by investors. This gives the market more stability – housing is a fundamental human requirement. As long as you buy in the right location, the value isn't going to disappear as it can in stocks. The government wants us to be property investors. It actually doesn't want to provide public housing to that 30% of Australians who rent properties. In property, you make fewer but bigger decisions, so it's extra important to make sure those decisions are the right ones. Share market The share market is much more liquid so it's easy to get your money back on short notice. The share market is also better for generating income (cash flow.) Because you can buy smaller clumps of shares, the entry cost is lower. Property is lumpier. The diversification of the stock market is an advantage. You can also diversify over time. You can leverage against shares, but not as much as you can with property. Links and Resources: Michael Yardney Metropole Property Strategists Pete Wargent Next Level Wealth Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Join Michael Yardney and a group of Australia's leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane, and Melbourne Use the coupon code PODCAST and come as our guest. Show notes plus more here: Property vs Shares, which is a better investment? With Pete Wargent Some of our favourite quotes from the show: "Because property is lumpy, you can't get it wrong. You've got to get good advice." – Michael Yardney "The government wants us to be property investors. It actually doesn't want to provide public housing to that 30% of Australians who rent properties." – Michael Yardney "You are not your fears. You create your fears." – 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

As we enter a new year and the beginning of a new property cycle, there are still many mixed messages in the media leaving many investors and potential homebuyers confused. Hopefully, by the end of today's show, you'll be a little less confused because I'm going to ask Dr. Andrew Wilson, Australia's leading housing economist, some of the questions you're probably thinking about. But before that, we're going to discuss some lessons that we've learned in 2019 that will make you a better property investor in 2020. I also have a mindset moment to share about things I would have liked to know earlier. 4 Property lessons As we enter a new year and in fact a new property cycle it's interesting to look back at 2019 and see what lessons we can take out of 2019 to make 2020 a better year in property. Let's take a look at 4 property takeaways from 2019: Be careful whose forecasts you listen to. What happened to all those predictions of 40% house price falls for the Australian property markets? Lower interest rates, a miracle election result and looser lending criteria saw the property markets in our 2 biggest capital cities surge in the second half of 2019 Property investing is a game of finance - with some houses thrown in the middle. This became clear as APRA tightened the lending screws on property investors from 2014 through till 2018 causing the biggest decline in our property markets in modern history. Then when the banks' lending criteria became more relaxed and interest rates fell in 2019 our housing markets rebounded strongly. There is not one "Australian property market". While the fundamentals of strong population growth and the wealth of our nation will underpin the Australian property markets, there is not one "Australian property market." Each state is at its own stage of its individual property cycle and within each state there are many markets segmented by geographic location, dwelling type and price point. Expect the Unexpected. Every year an unexpected X factor comes out of the blue to undo the best laid plans – some on the upside (like the miracle election result in mid-2019) and sometimes on the downside. Sometimes these are local issues and at other times they come from overseas. However, over the long term our housing markets are driven by the fundamentals so don't make 30-year property investment or home buying decisions based on the last 30 minutes of news. Bonus Lesson: The property market is not a get rich quick scheme, however those who own well located properties will benefit from the long-term growth of their properties. As Warren Buffet wisely said: "Wealth is the transfer of money from the impatient to the patient." An expert answers your property questions While our property markets are entering a new property cycle, currently there are lots of mixed messages in the media – some positive and many negative. This has led to many listeners to our podcasts leaving questions and asking for clarification. So, in my chat with Dr. Andrew Wilson today I'm going to ask him to answer these questions which, if you're interested in property, are likely to be on your mind also. Is Australia going to fall into recession in 2020? During 2019 the RBA realised that the Australian economy wasn't as rosy as it had hoped. The labour market deteriorated, unemployment rose, incomes growth languished, inflation failed to increase, and our GDP slowed down despite 3 interest rate cuts. It was really only mining sector and government spending that kept our economies head above water. But as the year finished off, the latest labour market data at the end of the year showed a slight fall in unemployment and jobs growth albeit mainly part time jobs. But there are now signed of an improving global economy, particularly driven by the strong US economy. All this makes an Australian recession in 2020 very unlikely. What is likely to happen to interest rates in 2020? While rates are likely to be cut again twice again in 2020, it is now more likely that the RBA will hold off cutting interest rates in February as many commentators are predicting. Their decision will depend on the end of year economic data that will be published in February and March. Will the strength in the Australian property markets continue in 2020? The auction markets finished 2019 strongly indicating plenty of home buyer and seller confidence. Other factors that will underpin strong property markets especially in Sydney and Melbourne include: The First Home Buyer Scheme that came into effect on January 1st The prospects of further interest rate cuts during the year Fear of Missing Out – as the markets rise strongly The missing link at present is investor activity. Investors are keen to get into the market, but many are having trouble getting finance due to restrictive bank lending practices. What will be the major influencers of our property markets in 2020? Just as lack of confidence held back our property markets at the beginning of 2019, strong market confidence will be one of the main driving factors of our property markets in 2020. Particularly the Melbourne and Sydney property markets Other factors that will lead to continued property price growth include: Pent up demand as property values in Melbourne and Sydney retrace their lost ground. These markets should reach new price peaks in the first half of 2020. Supply and demand – our population keeps increasing, but there is now very little new dwelling construction in the pipeline which will create a shortage of housing. Falling interest rates over the first half of the year A slowly improving Australian economy. The bottom line. The opportunity to take advantage of the beginning of a new property cycle only comes around a few times in your lifetime. Strategic property investors and smart home buyers will take advantage of the opportunities the property markets present in 2020. Links and Resources: Michael Yardney Metropole Property Strategists Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Join us at my annual Property Market and Economic Update – come as my guest using the Coupon Code: PODCAST Click here for details Show notes plus more here: 4 property lessons from 2019 that will help you in 2020 + Your questions answered | PROPERTY INSIDERS with Dr. Andrew Wilson Some of our favourite quotes from the show: "If you listened to all the Negative Nellies and the property pessimists, you would have missed out on some great opportunities 12 months ago." – Michael Yardney "Mistakes teach you important lessons." – Michael Yardney "The more you know, the more control you're going to have over your life." – 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

During his five years studying the rich and the poor Tom Corley identified 10 hard truths about the wealth gap that no politician or member of the mainstream media would dare reveal. And as I share them with you today, you'll probably get a few surprises. These aren't just our thoughts. In his 5 year study, Tom asked 361 rich and poor people 144 questions each. That's 51,984 questions. From the data he gathered, he was able to identify 344 differences between the way the rich and the poor conducted their lives. Over one hundred million individuals have read something about my research, which has been cited, quoted, referenced, commended and criticised in 25 countries around the world. As a result, Tom has made a lot of friends and a lot of enemies. And he's about to make some more with this podcast. His research opened my eyes. One of the many benefits of having done this research is that he became privy to the inner workings of the lives of the rich and the poor. For five years he was that fly on the wall. And this fly has identified 10 hard truths about the wealth gap. 10 Hard Truths About the Wealth Gap Bad Parents – The poor have parents who simply do not do their job. Drugs, alcohol, gambling and a host of other parent character flaws pull the rug out from underneath their kids. Broken Families – The poor are raised in broken families. Divorce, incarceration, abandonment are common denominators among the poor that fracture the family unit. No Work Ethic – The poor are bad employees who have a bad work ethic. As a result, they find themselves regularly unemployed. Financial Negligence – The poor spend their money as quickly as it comes. They don't save. They don't invest. They are financially illiterate. Poverty Ideology – The poor believe they will be poor their entire lives. They see poverty as a fact of life. They are without hope and thus, without motivation to escape their poverty. Bad Health – The poor do not exercise regularly. They eat and drink too much junk food. They frequent fast-food restaurants. They take drugs and drink too much alcohol in order to numb their pain. They are overweight and out of shape. Uneducated – The poor do not embrace education. It's not part of their culture. They do not self-educate themselves. They do not read. They do not engage in self-improvement. Bad Habits – The poor have many bad habits and few good habits. Entitlement Ideology – The poor believe they are entitled to things others have to work very hard for. Victim Ideology – The poor believe others hold them back in life. They see themselves as victims. They look to the government to take the wealth of those who are producing and working hard in society and redistribute it to poor people. I now know that rich people, particularly the self-made rich, are the good people. They were raised by good parents, parents who cared and who mentored them to succeed. Poor people, conversely, were raised by bad parents. Some were raised in broken homes, some were raised with little to no work ethic, some were raised to be ignorant of finances, some were raised with a poverty mindset, some were raised to disregard their health, some were raised to shun education, some were raised with bad habits, some were raised to believe they should be given free stuff and some were raised to believe the world was aligned against them. We don't have a wealth gap in this country. We have a parent gap. If, as a society, we truly want to end poverty, we have to first acknowledge the cause of poverty. Parents. Parents cause poverty. Parents are to blame. As a great man once said, "the truth shall set you free." Links and Resources: Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits Show notes plus more: 10 hard truths about the Wealth Gap Some of our favourite quotes from the show: "We know that children develop habits from things they see, things they experience, things they hear, and their mentors as a child are really their parents." – Michael Yardney "Bad mentoring from parents is more likely to – but not certainly – going to give you a disadvantage in life." – Michael Yardney "It's probably worthwhile reminding our listeners that we're all walking around with some good habits, some bad habits, some rich habits, some poor habits, some habits that are empowering us, and some habits and beliefs that are disempowering us." – 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 property markets have been on the move for a while now. But some people are saying no, it's all going to end, there's still a property crash coming. Others are saying that Australia's property markets are different. But are they really different? That's what we're going to discuss today with Dr. Andrew Wilson. But first, we're going to bust another 5 property market myths so that you don't get fooled. I also have a great mindset moment today. At the end of this episode, you're going to be a more informed property investor. Property Myths Busted Myth: Buying near capital cities is a certain money-spinner Fact: Capital cities are a good choice for investment-grade properties, but that doesn't necessarily mean that properties there are automatically successful. There will always be some suburbs that perform better than others. Some have socio-economic problems, some have better transport than others, and so on. It's a question of finding the right investment-grade locations and then the right properties in those locations. Myth: Property prices double every 7-10 years Fact: On average, that might be true. The problem is that average means that half all properties double in value every 7-10 years and the other half don't. Markets move in cycles, and there are multiple property markets – depending on location, price points, and property types. There's no guarantee that any property will double in value in 7-10 years. You have to do your due diligence. Myth: You can't lose with property Fact: Yes, you can. Not every property is an investment-grade property. Succeeding in property has to do with choosing the right property, in the right location, at the right time, and for the right price. Myth: Houses are a better investment because of their land component Fact: Land is the component that increases in value, so it can be a good choice to own a property with a high land to asset ratio. But land is not the only consideration, and not all land is the same. Desirability, demand, and location are also fundamental components of a successful property. Myth: It's too late for me to invest Fact: Sure, it's tougher to reap the rewards of property growth if you're older, but it's never too late. Even late in life, there's still the opportunity to grow your retirement funds and leave a legacy for your own children and grandchildren. The 7 Ways Australia's Property Markets Are Different with Dr. Andrew Wilson Population growth underpins our property markets Population growth is concentrated in our three big capital cities, creating a strong demand for housing. We have a sound banking system Australia's banking system is well regulated and risk averse. Australia has a long-term undersupply of the right type of property The supply of new dwellings has not kept up with demand, thanks mostly to an increase in immigration. Debt is not a real worry Much of Australia's debt is in the hands of borrowers who have the ability to service their loans. And much of the debt is good debt. Australian has a culture of homeownership This is different from overseas where many people expect to be tenants for life. Rental accommodation is in the hands of private investors In Australia, the majority of rental accommodation is owned by private investors. The government wants us to own property Because of Australia's culture of homeownership, the government encourages first home buyers with certain incentives and property investors with tax breaks. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Ahmad Imam- Director of Metropole Properties Sydney Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au See the show notes plus more at the show web page 5 Property myths that aren't true |7 Ways Australia's property markets are different with Dr. Andrew Wilson Some of our favourite quotes from the show: "Not all land is created equal." – Michael Yardney "Your life is a reflection of what you are willing to tolerate." – Michael Yardney "If you want money in your life, you've got to give more value." – 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 successful at anything, whether it's property investment, business or entrepreneurship, a great strategy is to find yourself a mentor – someone who's achieved what you're wanting to achieve and study them, learn from them and emulate them. You can learn from their successes as well as their failures. In fact it's much cheaper to learn from your mentor's mistakes So please allow me to be one of your mentors. You see…I frequently get interviewed on the radio, television and on podcasts. And today I'd like to replay an interview that brought out a lot of great information about my youth, my successes and also the things I've done wrong. As I said…if you can learn from other people's mistakes, why not do that instead of making these yourself? Mike Mortlock from MCG Quantity Surveyors interviewed me for his podcast. This show is about double the length of our normal show, but there's a lot of good information there that both new and returning listeners will benefit from. Some of the topics we discuss during the interview How I got interested in property My first property What led me to start the Metropole Group of Companies How finding mentors and learning from mistakes helped me create the business that I have today Some of the mistakes I've made Patterns I've learned in the property cycles Strategies that I have used in my real estate investment journey Which locations are going to outperform in the long run Why investors should think like home buyers What opportunities exist for potential investors with limited budgets How long it really takes to become financially independent Some strategies for new investors Difficulties with getting financing when you have several properties A mistake that I sees property investors frequently make How investors can use renovations to add value Why behavioural finance and investment psychology are important subjects to understand How biases affect financial decision making The services that Metropole offers Links and Resources: Michael Yardney Metropole Property Strategists Michael Yardney's Mentorship Program Mike Mortlock MCG Quantity Surveyors Show notes plus more here: How I built my property empire – Summer Series Some of our favourite quotes from the show: "I'm actually a real success at failure. I guess there's been tenacity to keep going." –Michael Yardney "The good and the bad times are keep coming, so be prepared for them. Maximise your upside and be prepared to cover your downside." "One of the big lessons of successful investors, business people, is to delay gratification. Wealth is the transfer of money from the impatient to the patient." –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.

Fears of the property bubble are back. It's a new year, and the naysayers and the property pessimists are out telling us we've got a property bubble. That's what we're going to unpack today as I chat with Pete Wargent. First-time homebuyers are back, established homeowners are back and investors are back in the property market because they fear missing out, particularly in our two big capital cities. Add to that a number of interest rate cuts, easier lending, and a friendly media that has been encouraging people to get back into the property market. But are we in a property bubble? Topics Covered in my Talk with Pete Wargent: The definition of a property bubble The efficient market hypothesis The cause of rising house prices The indicators of a bubble It's easy to predict a bubble because it's difficult to prove that the prediction is wrong Predicting bubbles can make people feel smart or sophisticated How the property cycles repeat What would happen if there is a price drop Where things are going to be in ten years' time Links and Resources: Michael Yardney Metropole Property Strategists Pete Wargent Next Level Wealth Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Join Michael Yardney and a group of Australia's leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane, and Melbourne Use the coupon code PODCAST and come as our guest. Show notes plus more here: Don't worry about an Australian property bubble – take our advice. With Pete Wargent Some of our favourite quotes from the show: "It's homebuyers who make the property market." – Michael Yardney "The property market cycle is what we've been seeing, as opposed to the hyperinflation of property prices which you'd see in a bubble." – Michael Yardney "I believe that the market tends to correct itself, and it has this time around." –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