Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

Well, it's the beginning of the New Year, in fact, the beginning of a new decade. It wasn't that long ago I remember the turn-of-the-century when we were all worried about the Y2K bug. All those predictions of mayhem that didn't occur. In fact, we are now 20% through the 21st century – that's a scary thought isn't it. So, what's ahead for the new decade? I'm sure there will be lots of scary predictions, and my first prediction is that most predictions will be wrong. But to get an idea of what might remain the same over the next decade and what might be different let's have a chat with Australia's leading housing economist Dr. Andrew Wilson and chief economist of myhousingmarket.com.au What will stay the same: Australia's population will keep growing and adding around 400,000 people per annum Net migration will account for over half this increase The population growth will remain concentrated in Melbourne, Sydney, and Brisbane We'll have the requirement for 170 -190,000 new dwellings each year Property prices will continue to increase because Australians including the hundreds of thousands of new migrants will continue to aspire to homeownership. Property investment will remain the way many Australia's secure their financial futures and more Australian's will turn to property investment as the returns for other asset classes dwindle. The property pessimists will still be out there telling us our property markets are going to crash Property spruikers and get rich quick artists will still be there taking money from naïve property investors looking to get rich quick More of us will move to medium and high-density living – apartments and townhouses – the dream of owning a quarter acre block will be nearly gone The younger generations will continue to leave regional Australia for the big smoke What will be different: Low interest rate, low inflation, low wages growth environment Cycles may be flatter because of the above Most Baby Boomers will have retired and Gen X will be coming up to retirement age Pension system won't be able to cope, and superannuation won't be enough to support your longer life 30-40% of the jobs we know could disappear in the next decade Links and Resources: Michael Yardney Metropole Property Strategists Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Show noters plus more here: What's ahead for property in this new decade? With Dr. Andrew Wilson Some of our favourite quotes from the show: "If we want to decentralise, there's going to have to be some different policies." – Michael Yardney "People are going to trade backyards for balconies and courtyards, they're going to want, as our cities become bigger, be in closer proximity to amenities, to lifestyle, to public transport." – Michael Yardney "Owner-occupiers go into the market with very different headspace than investors. So, it's lovely to be able to invest in a market that's not dominated by investors." – 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

Depending upon when you're listening to this, it's either just about to become a new year, or you're already into a new year and a new decade. Today, I'm going to discuss twelve things that are going to change over the next decade and ten things that are not. This is the end of my fifth decade investing in property and being able to look back and see what's gone on gives me some great perspective on what's ahead. I've done a lot of research for this, and whether you're interested in property as an investor or a homebuyer, you'll get a lot out of today's episode. The difference between Expectations and Forecasts There is a huge difference between, "I expect another next property downturn sometime in the next decade" and "I expect the next property downturn in the second half of 2024." One of the big differences is how I invest. If I expect another property boom followed by another property bust, I'm not surprised when they come. But since I don't know when they'll come, I won't make the focus of my property investing trying to time the property cycle. Because trying to time the property cycle is one of the reasons many property investors fail. On the other hand, strategic investors maximise their profits during booms and minimise their downside during busts by investing in assets that have always outperformed, rather than looking for the next hot spot or for the type of property strategy that works "now" rather than one that has worked in the long term. They own investment-grade assets in investment-grade inner and middle ring suburbs of Australia's three big capital cities. The type of property that keeps growing in value over time without fluctuating wildly in price when the property cycle slows down. What will stay the same: Australia's population will keep growing and adding around 400,000 people per annum. We'll have the requirement for 170 -190,000 new dwellings each year More congestion on our roads. Property prices will continue to increase - The property cycle will continue, Ordinary Australians will try to secure their financial future through property investment The property pessimists will still be out there telling us our property markets are going to crash Property spruikers and get rich quick artists will still be there taking money from naïve property investors looking to get rich quick More will move to medium and high-density living – apartments and townhouses – the dream of owning a quarter acre block will be nearly gone The property pessimists will still be there telling us we're in a bubble that will burst We will be living in the best country in the world at the best time in history What will be different: We will have a long period of low-interest rates and we'll be in a low inflation environment for much of the decade. This means we won't get the same level of capital growth as we have in the past In line with the low inflationary environment, most Australians will experience limited wage growth over the next years and this will impact on their ability to afford property. Lower levels of homeownership Future property cycles may be flatter because of the above – you will still be cycles but lower highs and higher lows. More people are living in blended households. Household size is increasing according to the census. The proportion of those living alone or as a couple over 60 years of age will have increased too, especially women over 60 years; sadly, most with limited financial means. At the other extreme, there is an increase in those living alone or as a couple, plus an increase in blended households as noted above – coupled with a drop in what many still think is the standard Aussie household, mum and dad and 2.5 kids. Plus, the mix from overseas has changed, with more migrants now coming from those countries with large family units. 30-40% of the jobs we know could disappear in the next decade and there will be casualisation of the workforce Most Baby Boomers will have retired and Gex X will be coming up to retirement age Pension system won't be able to cope and super won't be enough to support your longer life China will become more powerful Maybe a cashless society New technology we haven't even dreamed of Links and Resources: Michael Yardney Metropole Property Strategists Brett Warren, Director Metropole Properties Brisbane Sow notes plus more here: A dozen things that will change in property over the next decade and 10 things that will stay the same Some of our favourite quotes from the show: "In my mind, there's a big difference between expectations and a forecast." – Michael Yardney "I've found it's more practical to have expectations without forecasts." – Michael Yardney "The rich are getting richer, and that's because they own assets. So even though their incomes haven't gone up, their assets have increased in 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

Would you like Lifetime Wealth? Well…today we'll explain what that means and how you could achieve it as I replay a chat I had with my good friends Louise Bedford and Chris Tate from The Trading Game as we discuss the concept of true wealth. How to Obtain Lifetime Wealth Michael shares how he bought his first investment property over 40 years ago. He's made plenty of mistakes, but has still built a substantial property portfolio. He also gives back. To be truly wealthy you need much more than just money. You need money plus family, friends, health, spirituality, growth, and contribution. Chris shares his background. It is similar to Michael's but replace the word property with shares. How children absorb things without being taught directly. Legacy and leaving a ripple or something outside of you that carries on when you are gone. We learned about money, wealth, and riches from our parents and culture. What is your financial thermostat set for? You'll be surprised – it's set for what you have already got. Your thermostat won't change until you change and throw away the blame. The imposter syndrome or undeserved success. Not feeling worthy and self-sabotaging. Self-awareness deserving your success. How people believe the tool has something to do with their success, when it is actually the software that makes a success. How people who's views are mismatched may not be a match as a couple. The disconnect can produce tension and tear relationships apart. Couple's need to talk about their views about money. Partners need to be compatible on a whole host of issues. In the old day's people passed their trades on. Now property or shares can be passed to your kids, but it is not what you leave your kids it is what you leave in your kids. How we learn about money from our parents whether it is spoken or unspoken. Replacing non-productive beliefs with empowering beliefs. Teaching kids about training by loaning them money to trade and letting them keep half of the profits. How IQ and socioeconomic status can be linked. The importance of mentorship and getting together with other entrepreneurs. Find like minded people and the isolation disappears. How attending Wealth Retreat can help change your mindset and money habits. Links and resources: Michael Yardney Metropole Wealth Retreat Chris Tate Louise Bedford Our favourite show quotes: "Wealth isn't about how much money you have, but what you're left with if you lost everything and had to rebuild it." Michael Yardney "You either have to pay the world, the market, or your mentors when learning about investing." Michael Yardney "If you took all of the money in the world and divided it equally it would all end up in the same pockets again." Michael Yardney

There are so many common misconceptions that people just don't question. In fact, there's so much misinformation surrounding wealth creation, that in today's episode, I'm going to debunk 15 common myths. If there's one thing I've learned, it's that you shouldn't allow these kinds of blanket statements to hold you back. In this episode we'll explore these statements and help you avoid the "woulda, coulda, shouldas." Money doesn't discriminate; it doesn't care who you are or where you come from. No matter what you did yesterday, today begins anew and you have the same rights and opportunities as everyone else to become wealthy. Yet the sad reality is that the majority of Australians will never achieve financial freedom. On the other hand a small group of Australian property investors become very wealthy. Today I'd like to explore the common myths about money that hold many people back from achieving their financial goals. Myth # 1: It takes money to make money Many Australians have untapped equity in their homes that they can use as seed capital for investments, while others will have to learn the discipline of saving to get some startup capital. You don't need a fortune to begin making your first million; you just need to commit to making a start and stick with it. Myth # 2: I don't make enough money Everyone makes enough money to become an investor. The truth is most people don't have an income problem, they have a spending problem. Look at your current wage and ask yourself; how much am I likely to earn over my lifetime? You've got to start living within your means, paying yourself first, saving a deposit for a property and investing in order to break your current pattern. Myth # 3: My job and superannuation will take care of my financial future If you accept my definition of financial freedom as having enough passive income to finance the lifestyle you desire, without having to work; you will never achieve this through your job or superannuation. Instead you will need to take control of your financial future by investing. Myth # 4: I'm not smart enough In our country everybody has the ability and opportunity to become rich. To reassure you that an education doesn't equal a financial fortune, here are a few multi-millionaires who never graduated from college: Bill Gates (Microsoft), Michael Dell (Dell Computers) and Steve Jobs (Apple). Myth # 5: Investing is complicated Developing your own financial freedom is only as complicated as you make it. Investing is no different. The key is to learn from the right people – those who've already achieved what you want to achieve. The process is also simplified when you select an investment niche such as residential property investment and develop specialist knowledge in that area. Myth # 6: Investing is risky Many people speculate when they think they are investing – they buy a property in a secondary location or off the plan "hoping" it will increase in value. Speculation is risky. On the other hand finding a property with an element of scarcity so it will always be in strong demand, in an area that has always outperformed the averages and buying it below its intrinsic value, is a proven investment strategy that minimises your risk. Myth # 7: You have to know how to time the investment markets It's often said that timing is everything when investing, but that's not really the case. Have you noticed how some investors do well in good times and do just as well in bad times, while others do poorly in good times and even worse in bad times? This suggests to me that it's not our external world that determines whether we make money; it's something inside us - our mindset. Myth # 8: The rich are lucky The truth is that success in wealth creation is no more about luck than is success in anything else in life. To become wealthy you have to be in control of your finances and not count on good fortune. Myth # 9: To become rich you must diversify Wrong! Yet that's what most financial planners suggest isn't it? Diversification leads to an average outcome. Myth # 10: Paying off your house provides security The problem here is that once you've paid off your house, you end up with idle equity sitting under your roof doing nothing; equity you could use as a deposit to buy an investment property and grow your wealth. Myth # 11: All the good investments are taken That's not true – opportunities are always out there – in every market. Sure, all of yesterday's deals have been taken, but tomorrow's deals have not. Someone will snap them up. Why shouldn't it be you? Myth # 12: If you want to do it right, you have to do it yourself There's no such thing as a self made millionaire. All successful property investors have a good team of professional advisors and supportive mentors around them. The rich recognise that they can't be an expert in all aspects of wealth creation, so they find a team of experts they can lead in order to help them achieve their goals. Myth # 13: I've done everything wrong! It's too late There are many success stories of people who conquered all sorts of adversity, or started investing later in life and ended up achieving financial freedom. In fact Ray Croc was over 50 years old when he built his very first fast food outlet. You might have heard of it – it's called McDonald's. Myth # 14: Debt is bad Most Australians believe debt is a dirty word, but not all debt is bad. Savvy property investors know how to use good debt to buy appreciating assets. Myth # 15: It doesn't matter what I want – I just can't do it Subscribing to this myth is almost a guarantee of failure, because our beliefs and perceptions become our reality. There's no way money can know who's in control of it, what their qualifications are, what ambitions they have or what they're going to do with it. Money is there to be used and spent, saved and invested. It can't judge whether you're worthy or not. Now that you understand some of the myths that have held so many people back, the good news is you can do things differently. Choose to change your beliefs to produce outrageous results and reach every goal you set. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Some of our favourite quotes from the show: "Despite what some people believe, it doesn't really take a lot of money to make money." – Michael Yardney "Successful people come from different backgrounds and while some have university degrees, others never finished high school." – Michael Yardney "It's never too late to learn how to invest. It's never too late to overcome your mistakes." – Michael Yardney More details plus show notes here: Fifteen wealth myths that hold you back 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 facts are in again, and they show that the rich are getting richer. If you're a regular listener, you know that we've said that on many occasions. But today I'm having a conversation with Michele Levine, CEO of Roy Morgan, Australia's longest-established research company who recently released an Australian wealth report that's very different from all the other reports. We're going to dig in and explain what's really been going on over the past 10 to 15 years with some interesting findings. We chat about why the rich are getting richer and why the average Australian hasn't moved forward with their wealth over the past decade or so. We're going to explain about men and women and why their wealth has changed. Hopefully, this information will help to put you in the right position to become wealthier. Then, in my mindset message, we're going to discuss why you don't want to cover the world in leather What does that mean? Listen in to find out. Key Takeaways from the Australian Wealth Report The rich are getting richer, but on average, Australians are all getting richer In Australia, the top 10% of people hold 47% of the wealth The bottom 50% hold 3.6% of the wealth The data shows that while Australian's wealth wobbled a bit during the global financial crisis, it didn't hit Australians anywhere near as hard as it hit other countries. Australian wealth has almost doubled since the GFC Just before the GFC, Australians held 4.5 trillion dollars Now it's 8.6 trillion, or 90% more wealth Of Australia's 8.6 trillion dollars in wealth, about 6 trillion is in property Australia's debt is about 1.2 trillion Looking at the median wealth for individual Australians, it's down a little bit – about 2% The top 30% have increased by 60-65% The bottom 30% have gone up by similar amounts But the 40% in the middle haven't seen the same level of increase. Their increase has been around 20%. When you apply a CPI adjustment, you can see why the people in the middle feel less wealthy. Women still trail men in wealth. The average man has $445,000 in net wealth. The average woman has $393,00 In 2007, women had 80% of the male average wealth. Now they have about 88%. They're catching up, but they're not there yet Links and Resources: Michael Yardney Metropole Property Strategists Michele Levine, CEO Roy Morgan Research Institute More details and show notes here: The latest Australian Research is in. Here's what's happening to your wealth Some of our favourite quotes from the show: "Even though there are headwinds ahead, we're still living in a fantastic time and we're lucky to be in Australia." – Michael Yardney "That's how we tend to approach things. We think if we can just get rid of them, or cover them with leather, our pain's going to go away." – Michael Yardney "If you put on shoes when you walk across the boiling sand, the cut glass and the thorns won't bother you." – 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 have all experienced stress. Whether it is at home, at work, in our own business, stress feels an unavoidable part of our busy lives. It's the unavoidable part I want to focus on. It may be that seeing stress as something we should seek to avoid is what actually heightens its negative impact. Rather than seeing stress as something to avoid or a necessary evil there are ways in which we can look at stress as an opportunity. Stress is actually mental energy that can be harnessed. Stress basics: It's worth remembering that stress is a neuro physiological reaction to danger. When we stress and allow that stress to have a negative impact, we become physically tense. Blood flow is restricted to our muscles and even to our brain. Stanford University's Kelly McGonigal refers to this process and the connection to stress headaches. As our muscles are deprived of blood flow, we often feel tired, lethargic and may even suffer from stress-related aches and pains, not to mention lower resistance to infection, making us unwell. Step 1: change the view and harness the stress Let's go back to when stress was a valuable tool to warn us of danger. When the caveman or woman stepped out of the cave they had to determine whether that rustling in the bush was, in fact, a Sabretooth tiger. Stress in that situation is used to protect, blood brings more glucose to muscles to prepare to fight and more oxygen to the brain for clearer thinking. The point is that when stress presents itself, we are far more likely to be able to cope with it if we can change the view of it, in other words, we turn it from foe to friend. Step 2: Remember Stress builds Resilience Military training shows soldiers how to grow from stress. Dan Pronk talks about the physical, emotional and psychological stress special forces soldiers are placed under. The purpose of that generated stress is to build resilience, to help them to become stronger, learn, grow and to use the stress responses in a positive way. The point here is that if you take the right mindset approach to stress then you can actually use it as a tool to grow and improve. Next time stress rears its head, take a look at the cause and ask yourself how you can turn your approach into one of a challenge to be accepted or an opportunity to be capitalized on rather than a sign of defeat. Step 3: Remember there is always help No matter how diabolically stressful a situation may be it is important to remember that help is ALWAYS available. Thinks about some of the terrible things you see on the TV news, whether its fires, riots. Terror, in each case, as the news shows footage of people fleeing and running for their lives there is always someone running the other way, toward danger, to help! Helping is a huge part of normal human behaviour and not just the realm of professionals, so it's worth keeping in mind that when stress hits, reach out. That's the benefit of a mastermind. Remember these four things: Stress is normal, we all encounter it. Your body's natural response to stress is actually designed to help not hinder Stress can actually help you to grow, learn and build resilience There is always someone who can help. 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 deal with stress in a positive way | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "This is just part of the journey, part of climbing the mountain. And not many people are prepared to take that climb, that makes you breathe harder and your pulse run faster." – Michael Yardney "Rather than when something happens, letting it ruin your whole day, somebody who's learned how to cope with stress keeps these inconveniences in proper perspective." – Michael Yardney "Isolation is one of the challenges successful business people, entrepreneurs, and professionals have, but it's one of the things that causes their stress as well." – Michael Yardney Show notes plus more at the show webpage: Here's how to deal with stress in a positive way | Build a Business, Not a Job Podcast 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 property investor, today's show will point you in the right direction. First, we'll have a chat about where not to invest. This aren't just my thoughts. They are the results of a recent university study in Australia that shows where you shouldn't invest. Most property investors never get past their first or second property. You don't want to be in that group, do you? So paying attention to where not to invest can help you avoid falling into the trap that so many investors do. I also have an interesting mindset message for you. Finally, I'll have a chat with Dr. Andrew Wilson about first home buyers, because they're going make a difference to our property markets. This discussion is relevant for first home buyers, but it's also very relevant for property investors, as they're often investing in the same price ranges and markets as first home buyers. We'll discuss our concerns about the first home buyers' scheme that's going to be starting soon. We'll also look at what has happened when we had these schemes in the past. Where not to invest if you want property success Most property investors never achieve the financial freedom they're looking for. Of the 2.1 million property investors in Australia, 1.8 million never get past their first or second property while only 21,000 investors around Australia own 6 or more properties. A recently published report found that two-thirds of Australians buy an investment property close to where they live, rather than in another location that could outperform their hometown in the long run. These buyers felt safe buying in a familiar location, but there's no indication that their familiarity actually gave them an advantage. The report also found that investors who invest in their own area pay higher prices and that one-fifth of investors self-manage their properties. Self-management can be a big mistake. Employing a property manager is a way of insuring your asset. It's an investment, not an expense. Buying locally and putting all of your eggs in one basket may feel safer, but that doesn't mean that you'll get the best return on your investment. Becoming a success in property investing requires more time and effort than just choosing properties near where you live. But it doesn't necessarily have to require your time and effort. Turning to a buyers' agent who has more market knowledge can help you get the strategic advice you need to invest in properties that are likely to outperform. First Home Buyers rush to market fearful of rising prices As of 1st January, the First Home Loan Deposit Scheme will allow first-home buyers to put up a 5 percent deposit, rather than the usual a 10 or 20 percent deposit. This will only be available for 10,000 eligible first-home buyers each year, and there are other restrictions as well. First-home buyers wanting to use the scheme will be limited to properties sold for less than $700,000 in Sydney, $600,000 in Melbourne up to $475,000 in Brisbane and it will apply to owner-occupied loans on a principal and interest basis. Price caps for large regional centers are the same as those for the capital city in their state. It also removes the cost of lenders mortgage insurance for first-home buyers with an annual income of up to $125,000 or couples with a combined $200,000 per year. If history repeats itself, these first-home buyers will push up values in certain locations. It may also commit first-home buyers to long term financial imprisonment Why is that? First-home buyers emboldened by the home loans obtained with their low deposits will be chasing a similar range of properties and the old supply and demand ratio will kick in pushing up property prices. First-home buyers who miss out on the lottery could end up paying more for their properties or have to wait another year for the next round of grants, by which time property values will be even higher. New homes come with a lot of extra expenses and those who haven't developed a savings discipline could find themselves in financial strife. They'll have to pay interest on a larger mortgage, but then they're likely to go out and buy furniture and appliances as well, creating even more debt. This reminds me that the Government should be careful of the unintended consequences of hastily though out policies. 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 Show notes plus more here: - Where not to invest if you want property success | First Home Buyers rush to market fearful of rising prices Some of our favourite quotes from the show: "Knowing your local area is not the same as understanding the dynamics of the local property markets and understanding what does or does not make a good investment property." – Michael Yardney "If you just knew how resilient you are to life events, you'd take more risks." – Michael Yardney "The key lies in your ability to adjust your expectations when things don't go right." – 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

Have you ever felt like everyone else knows what they're doing when you have no clue? Do you sometimes believe your success is all about luck, but your failures are all you? Do you wonder when the fraud police are going to come to kick down the door and drag you from your desk? If the answer is yes to any of these, welcome to the imposter club! The good and bad news is that it's not a very exclusive club and almost all of us will be a member of this club at some stage in life. In today's podcast, I'll have a chat with Louise Bedford, who has a degree in psychology, about what's going on in your brain when you feel like a fraudster and how to try and push through those feelings. What is Imposter Syndrome, and how does it affect you? The term "Imposter Syndrome" was coined by psychologists Pauline Clance and Suzanne Imes in the 1970s An estimated 70% of people experience these impostor feelings at some point in their lives Three main components of Imposter Syndrome: Feeling like a fake Disregarding praise and achievements Attributing successes to good luck If investors don't correct their thinking, they'll self-sabotage Lies Imposter Syndrome Tells You Lie #1: You have self-doubt, so you will fail Lie #2: You can't admit vulnerability Lie #3: You're not ready Lie #4: It's a matter of time until you blow it Lie #5: They don't mean that praise, they're just being nice How can you get rid of Imposter Syndrome? Refuse to give your "inner lunatic" any light Practice self-awareness Take credit for small triumphs Keep a journal to record your thought patterns and your wins Seek constructive criticism on small matters Seek professional help if you need it Links and Resources: Michael Yardney Metropole Property Strategists Louise Bedford – The Trading Game To download your Impostor Syndrome special report, click here: To read more about Pauline Rose Clance and take the Impostor Syndrome quiz, click here Show notes plus more here: What you don't know about Imposter Syndrome could hurt you as an investor Some of our favourite quotes from the show: "If you suddenly come into wealth, whether it's through property, whether it's in lottery, whether it's inheritance, I just see people over and over again sabotage themselves." – Michael Yardney "I'm prepared to bet my money that spring's going to come after winter this time too because it always has." – Michael Yardney "I'm prepared to fail knowing that I've just found something that doesn't work, and I'll get to the next level." – 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 look back on 2019, it's going to be a watershed year for property, a year of two halves. At the beginning of the year everyone was very nervous about the future of our property markets. At the end of the year there's so much more optimism. Of course, there are still some economic issues and headwinds ahead for our property markets. But we've recently conducted our annual Property Investor Sentiment Survey, so today, I want to share what 1,800 property investors are planning to do for 2020. This will help you understand where you fit in with a wide range of other Australian investors as well as giving you a glimpse ahead, because investors do move our property markets. Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would-be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. I'm joined today by Sarah Megginson, editor of Your Investment Property Magazine. Investor profile shifted slightly: 2017 - 28% owned 5 or more properties 2019 - this had dropped to just 17% owning 5+ We're not sure whether this reflects a drop in property ownership or a change in the type of people who are replying Rentvestors: 16% of respondents were rentvestors in 2019 Almost half (48%) the respondents would consider using it as a strategy to get into the market Investment Strategy: Investing for "Long term capital growth" and "buy, add value and hold" remain the two most popular property investing strategies Long term growth was the no.1 strategy for 59% in 2017; 51% in 2018; 49% in 2019. Add value and hold the property largely unchanged, 20% in 2017; 19% in 2018; 19% in 2019 - so around 1 in 5 investors adopting this strategy Sentiment: People remain positive, as the majority reported that now is a good time to buy property in 2017 (61%), 2018 (52%) and 2019 (68%). 19% of respondents plan to buy a new home in 2020 – the same as last year (2019). This was down from 23% in 2018 (but still higher than the number planning to buy a new home 3 years ago (14%) Takeaways from our conversation: Watch out for analysis paralysis. Don't buy investment properties for tax benefits. Treat your investment properties as a business. Negative gearing is not an investment strategy. This is the best countercyclical opportunity to invest in a long time. Don't change your long-term strategy because of short-term circumstances. In today's tighter finance environment, living off equity is very difficult. If you want to outperform the averages, you need expert advice. But be careful who you ask. 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 Sarah Megginson – editor Your Investment Property Magazine Get the results of the 2019 Property Investor Sentiment survey here Show notes plus more here: Here's what 1,800 investors think is going to happen to property in 2020 Some of our favourite quotes from the show: "Don't make 30-year decisions based on the last 30 minutes of news." – Michael Yardney "The decision to buy a home doesn't depend as much on the market as, I guess, your family circumstances." – Michael Yardney "All the successful people I know don't particularly want to retire, they just want to work at their pace, do what they want to do, when they want to do it, with whom they want to do it, and have choices." –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 be rich and successful be like Spock. If you're a Star Trek fan, you'll really enjoy that segment where Tom Corley and I discuss controlling emotions as being one of the rich habits. And even if you aren't, you're going to get a lot of good information out of it. Then, I'm going to teach you one of the lessons I learned many years ago. It's an extended mindset moment about the Law of Belief. Once you understand the Law of Belief, you're going to be much more in control of your life. You'll be able to develop some more rich habits and get rid of some poor habits. Why You Want to Be Like Spock For the few listeners out there who have never heard of Dr. Spock, he is the Vulcan in the Star Trek series, books, and movies. Spock's overriding character trait was that he never expressed emotion and, thus, was ruled by logic. There is a great deal of new brain science out there that explains how emotions, in particular, negative emotions, alter brain performance. One of the most profound impacts emotions have on the brain is that they interfere with the operations of the Prefrontal Cortex. Why is that a problem? It's a problem because the Prefrontal Cortex does numerous things, some of which impact your ability to live a successful, happy, healthy and wealthy life: Executive Command and Control – The Prefrontal Cortex is the area of the brain where logic and decision-making reside. Creativity – Insight, flashes of genius and intuition result from the joint communication between the Prefrontal Cortex and the Limbic system. Consciousness – Although consciousness is spread out among many areas of the brain, the Prefrontal Cortex is the CEO of consciousness and self-awareness. Emotional Control – The Prefrontal Cortex has the ability to stop emotions in their tracks, upon command. When your emotions erupt, you have two choices – let them flow or shut them down. When you allow your emotions to flow, the Amygdala, one of the primary emotional centers of the brain, takes complete control of the brain by shutting down or overpowering the Prefrontal Cortex. There are millions of people around the world, sitting behind bars, all because they allowed their Amygdala to control their behaviours and decision-making. So, controlling your emotions keeps you out of trouble? Yes, but it is much more than that. Controlling your emotions also happens to be critical to success, wealth, health and happiness. When the Prefrontal Cortex is trained to control emotions, and this training becomes a habit, the Amygdala loses all power over you. This allows you to intelligently and logically think through difficult situations, without any emotional interference. Those who have trained themselves to be unemotional are able to tune out all negativity, no matter the source, and go on about their business. Becoming successful is a process. Part of that process is learning to Be Like Spock and control your emotions. And, it's a big part of that process. The Law of Belief Many years ago, I learned about the Law of Belief from Brian Tracy, one of my mentors. The Law of Belief states that whatever you believe with emotion, becomes your reality. The Law of Belief says that you don't necessarily believe what you see, you see what you have already decided to believe. In other words, your beliefs control your reality. You act in a manner consistent with your innermost beliefs and convictions. It's not hard to tell what anyone believes by simply looking at what they're doing. This is a foundational law in life. That means that without wholeheartedly believing that something can actually be part of your reality, it will always remain out of your reach, no matter how desperately you want. Our thoughts and our beliefs lead to our feelings, our feelings lead to our actions, and our actions lead to results. But the great thing about the Law of Belief is that it's reversible. Our beliefs are built on a mixture of facts and fictitious perspectives. We learned the beliefs that we had when we were young. Beliefs are nothing more than illusions of reality, and we're all walking around with tinted glasses on. The problem is that we don't know we're wearing tinted glasses. Our self-limiting beliefs make up fundamental flaws in our psychology. The biggest part of success has to do with the way you think and the way you feel. All the good property advice and information in the world won't be enough if you're sabotaging yourself with self-limiting beliefs. But, if you engage in actions consistent with the beliefs you want to have about yourself and about your life, you can eventually develop the muscle – the beliefs – by lifting the right weights. Links and Resources: Michael Yardney Metropole Tom Corely's Rich Habits Blog Get your own copy of our international bestseller Rich Habits Poor Habits Show notes plus more here: If you want to be rich and successful be like Spock PLUS the Law of Belief | RICH HABITS, POOR HABITS Podcast Some of our favourite quotes from the show: "If you have a team, if you've got people that work with you, whether they're employees, teammates, partners, you like working with people who are volatile and you don't know what's going to come out of their mouth next." – Michael Yardney "That's something I'm going to say now – be like Spock." – Michael Yardney "It's only what a person actually does that tells you what they truly believe." – 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.