Property Investment, Success & Money | The Michael Yardney Podcast

How has the pandemic re-shaped your life? It would be very unusual if you hadn’t had some major upheavals over the last couple of years, but what’s going to remain as a long-term trend, a legacy of the lockdowns, and what fads are soon going to be forgotten. I’m sure many of us would like to forget the last couple of years, but they will be pretty hard to forget. In fact, it’s likely Covid will leave scars on some of us, how we do things what we feel comfortable with and how we want to live, but Covid has also brought with a couple of positive innovations, it has brought forward a number of trends which were probably going to happen anyway and these will improve our lives. In today’s show, I want to discuss these because whether you are a property investor, a business owner, or a professional understanding these social trends post-Covid will be critical for your success. And who better to discuss them with than our regular guest, leading demographer Simon Kuestenmacher, so welcome to today’s show. How has Covid changed social trends? As we move into a new world of what some will call Covid normal, what will we look back on as a short-term fad, and what will last forever. Which trends will last? Online shopping? Working from home? Where do we want to live and how do we want to live? That’s what I’m going to ask leading demographer Simon Kuestenmacher, director of the Demographics Group because if we understand how the pandemic re-shaped our wish list, not just for housing and property, but for many things in life, it will make us better investors, business people, and entrepreneurs. Let’s look at a number of social trends that will shape demand and the way we will be living moving forward. Work from home Before Covid, just 5% of workers worked from home. During lockdown, at-home workers approached 50%. It’s likely that the trend of working from home will continue moving forward. If nothing else, employers and workers will work out hybrid arrangements – workers will be partially remote, partially in-person In the longer term, the proportion of the workforce working from home could settle at about the 10-15 percent mark. The future of the CBD There will be a rise of work near home workspaces Overall, through the next 2 or 3 years, the area will completely recover However, it won’t happen immediately The importance of neighbourhood The 20-minute neighbourhood - The ability to work, live, and play all within 20 minutes’ reach is the new gold standard desirable lifestyle. COVID created a more intense sense of community Home improvements The collective dwell time in the family home has been boosted by the work from home revolution pandemic. The greater the dwell time the greater the tendency to invest in the family home with new appliances, technology, furniture, furnishings. Millennials These are the children of the Baby Boomers born 1984-2002, now aged 19-37, and who over the next five to six years will push into their late 30s and early 40s These upgraders will trigger a surge in demand for family-friendly residential property in the suburbs. Boomers born 1946-1964 and who are now aged 62-75. They will reinvent this time (65-plus) in the life cycle as the most exciting time of all: kids off their hands, mortgage paid out, health still okay. The 2020s are their time to spend the kids’ inheritance and to methodically tick off activities from their ever-expanding bucket list. VESPAs - Virus Escapees Seeking Provincial Australia Work from lifestyle regions Scootering out of capital cities in search of affordability and serenity in a lifestyle town. FIZOs You’ve heard of Fly-in Fly-out or FIFO workers? Well, how about Fly-In Zoom-Out or FIZO workers? Workers who are remote most of the time, but are required to work in person for at least a couple of events Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group As our markets move forward why not get the team at Metropole to build you a personalised   Strategic Property Plan – this will help both beginning and experienced investors. Subscribe to Simon’s YouTube channel here Read Simon Kuesetenmacher’s blogs on Property Update here. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: What’s ahead? The post-Covid social trends that will stick, with Simon Kuestenmacher Some of our favourite quotes from the show: “They’re upgraders now, they’ve upgraded homes rather than apartments, and that’s going to create a huge demand for certain sorts of properties in the family-friendly residential suburbs.” – Michael Yardney “Continuing on with the Vespa analogy, they’re going to be scootering out of the capital cities and moving into the regional areas.” – Michael Yardney “Those who succeed in life do not think they’re going to fail, they know it.” – 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

According to Core Logic, over the last 12 months, their home value index has risen by 30% in Sydney, 26% for Brisbane, and almost 20% for Melbourne. There is no doubt that these levels of property price growth are unsustainable in the long term, so are we in a property bubble? Are our property markets going to crash? And if so when will this happen? That’s what I’m going to discuss in today’s podcast with independent financial advisor Stuart Wemyss, as we go back in history to see how much property values have fallen in the past – I think some of the stats that Stuart will share will surprise you. Are Our Property Markets Going to Crash? If So, When? The average household in a raft of suburbs around Australia will be pushed into mortgage stress if interest rates climb just 1%. Well…That was a headline doing the rounds not that long ago. At much the same time modelling by one of Australia’s most publicized property pessimist suggested that a minimum mortgage rate hike combined with a higher buffer rate as required by the recent APRA edicts to the banks would send thousands of residential landlords into financial stress and could fuel house price falls by the end of next year. So, will higher inflation lead to higher interest rates that will tip the scales and spell the end of the current property boom? And more importantly, will it create a property market crash like a number of commentators are predicting? The problem is that some people know just enough to think they are right and not enough to realize they are wrong The reality is that property has always seemed relatively expensive. What is mortgage stress? There are various definitions of what mortgage stress is, but it’s most commonly defined as a household spending more than 30% of their pre-tax income on their home loan repayments. Yet looking at mortgage defaults or mortgage arrears with our banks would suggest that very few Australian households are currently suffering mortgage stress, and many are well ahead in the mortgage payments. Let’s look at what could cause a housing market crash There is no doubt that at some time in the future we will experience a cyclical property market correction, but there is no need to worry about a house price “collapse” like some property pessimists are suggesting. House prices “collapse” when people are forced to sell their homes and there is no one willing to buy them. A true collapse in house prices would require a significant external shock such as: Unemployment is high enough to trigger a waiver forced home sales, and that’s not going to happen. Interest rates rise so high that they would cause a raft of homeowners to default on the mortgage. The Reserve Bank wants this about as much as it wants another strain of coronavirus. A credit squeeze – APRA is currently making it a little bit more difficult to borrow money, but they don’t want to crash our property market either. A severe recession that would increase unemployment and cause homeowners to default – that’s not on the cards. A severe oversupply of property – currently we have an undersupply of the right type of properties that most homeowners want. So, while a crash is not on the cards, a correction will occur one day and at that time some properties will hold the value better than others. Obviously, that’s the type of property you should own. Australian property price bubble? According to Core Logic, the home value index has risen by 30% in Sydney over the 12 months to October 2021, 26% for Brisbane, and almost 20% for Melbourne. Whilst recent property price growth has been unsustainably high, it’s more important to consider medium-term growth, especially considering negative returns in 2017-2019. Over the 5 years to June 2021, the median house price in Brisbane, Sydney, and Melbourne appreciated by between 4.7% p.a. and 6.9% p.a. (according to REIA), which is below the long-term average. Whilst some commentators have recently predicted that property prices will fall, it is interesting to note that medium-term returns (5 years) tend to be a good predictor of price falls. I picked the largest price falls since 1980 in Melbourne, Sydney, and Brisbane. Here’s what I found:    Median house prices in Sydney fell by almost 15% between 2017 and 2019. The 5 years prior to this period prices rose 13% p.a. In Melbourne, the median house price fell by 11% over 2011/2012. The 2 years prior to this period house prices rose by 24% p.a. Median house prices in Brisbane fell by almost 8% over 1986/1987. The 5 years prior to this period prices rose 11% p.a. The conclusion is that price growth must be above average for an extended period of time (more than 2 years) for there to be a risk of a correction. Property prices in Melbourne, Sydney, and Brisbane have merely made up for the poor growth rate since 2017. Today’s property prices will seem cheap in 2031 The best way to reduce your risk of entering a seemingly “expensive” property market is to buy a property that has the highest likelihood of generating the highest possible capital growth rate. As the above table demonstrates, you can double your return if your property can generate 9% p.a. versus 7% p.a. over 40 years. A relatively small increase in growth rates can have an unexpectedly large impact over many decades. Buy the ‘right’ property and play the long game The best response to any concerns about property prices is to level up on a property’s quality and focus firmly on long-term outcomes. As a staunch proponent of evidence-based investing, you must apply a rules-based approach to selecting an investment-grade asset. But also, since the property is part-art, part-science, it’s critical that you get advice from a local area expert. Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game & Investopoly Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: When will the property market crash? With Stuart Wemyss Some of our favourite quotes from the show: “One of the problems for beginning investors is if they get it right the first time, they think they’re smarter than they are.” – Michael Yardney “The only reason the reserve bank would raise interest rates would be to slow down a booming economy. At the moment they’re keeping them low to grease the wheels of industry.” – Michael Yardney “This change in seasons that we’re experiencing is a welcome reminder that we’re not living in a never ending now.” – 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

Australia’s economy and our property markets don’t operate in isolation, so I believe it’s good to regularly have a look at the big picture, the macroeconomic factors affecting not just Australia’s economy, but the world economy to help us understand what’s ahead for us, and I do this once a month in these Big Picture Podcasts with Pete Wargent. Since this will be our last Big Picture podcast for the year Peter and I will give a short review of what happened over the last year and our thoughts on what’s ahead for the world economy, Australia’s economy and our property markets. Economic and property trends you must understand As I look back, 2021 the year seems to have gone quickly for me, even though I know for a lot of people it has been a slow and difficult year. It’s been a great year for my business at Metropole where we help more people are ever secure their financial future through independent wealth and property advice and advocacy and its been the best year in my memory for the growth of my property portfolio, and I know for most people who owned property it’s been a very good year also. Yet I recognize that some people have experienced tough times related to their health, to their business or financially.  And I’m not saying that flippantly – in most cases this was totally out of your control and it just doesn’t seem fair does it? So what’s ahead for us? What will 2022 bring? That’s one of the many topics I’m keen to discuss in this month’s Big Picture with economic analyst Pete Wargent. Lockdowns have been removed in Australia However, Europe seems to be seeing a new wave of Coronavirus The UK’s numbers of infection have been high, but hospitalization rates are going down The third set of vaccines is helping to reduce serious cases The economy hasn’t performed as strongly as some had predicted the beginning of the year This is because of the Delta strain of coronavirus and lockdown is in Melbourne and Sydney However, analysts expect growth in the December quarter not only to overtake its pre-Delta peak but to keep going. The large war chests Australians have built from saving their cash will help drive the economy. Now that 80 percent of Australians aged over 16 are fully vaccinated and restrictions on activity have been significantly eased, the RBA sees our economy recovering rapidly. Their upgraded economic forecasts will see a buoyant environment in the lead up to the federal election we’ll most likely be having in either March or May next year. The RBA said that, with the economy now opening up, the momentum evident before the Delta outbreak is expected to resume. Rising inflation isn’t all bad Rising inflation will reduce the impact of ballooning government debt. At the same time, property investors will benefit from a higher range that usually comes along with higher inflation In the September quarter, our current account surplus hit a record $24bn, according to the official data from the ABS, up from the only slightly less spectacular $23bn in the June quarter The pandemic has shown that without students and migrants we face skills and general labor shortages across the nation If the scenario of 250,000 migrants by 2023 eventuates house prices could jump about 5 percent by 2023 and rents would lift about 7 percent. A number of the banks have updated their forecasts for the next few years They all agree our property markets are slowing down in terms of capital growth but will still perform strongly in 2022 They also all suggest property values will drop in 2023. It’s been a surprise how strong the markets performed and APRA’s sudden intervention It’s also been surprising that there are unusually low rental vacancies It’s been reported that widespread money laundering is contributing to Australia’s inflated property prices Australia’s weak anti-money laundering policy, flaws with the corporate registry, and the lack of a beneficial ownership register all contributed to the problem Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join Michael’s Property Update private Facebook group by clicking here Pete Wargent’s new Podcast Shownotes plus more here: The Big Picture, economic and property trends you must understand - December 2021| With Pete Wargent Some of our favourite quotes from the show: “In general, the economies of most of the world are going to perform well next year, aren’t they? So we’re not operating in isolation.” – Michael Yardney “You’re a migrant, I’m a migrant, in fact, most Australians are, and if it’s controlled, if it brings in skilled people who are going to pay taxes and buy goods, then that’s actually good for the economy.” – Michael Yardney “I’m not sure that a rise of 1% is going to be enough to put people into mortgage stress, especially if it’s done slowly, over a period of 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

As they say - every cloud has a silver lining. So, what can we take out of the last couple of years of Covid to make our futures better? Well, in my last podcast I was chatting with Ken Raiss, Australia’s leading property tax strategist and director of the Metropole Wealth Advisory and we started to share 20 insights we’ve learned from Covid-19, in the hope that if you learn from these lessons you could be a better property investor, business person and entrepreneur and that could be your silver lining. There were so many things to discuss we didn’t get through the list, so in today show we’ll continue with our thoughts Whether you are a beginning property investor or experienced professional, I’m sure there’ll be something in my chat with Ken that will be of benefit to you. More Property Lessons Don’t try and time the market You can’t time the market and investment grade properties gives more options even in periods of downturn The importance of investing in resilient large cities. Look how well Melbourne survived over 200 days of lockdown and six lockdowns the fact that Melbourne has a range of different industries is proof of the resilience of investing in large cities The importance of neighbourhood One thing I know many of our Melbourne friends have been missing is their “third place”. If our first place is home and our second place is work or the office, it has been the ability to go to a third-place that was taken away. It may be a favorite café, a gym or a place of worship, and even local shops and pubs. So, all these features combined will be a major requirement and will create huge demand moving forward. These are all features of the 20-minute neighborhood, that will be built around convenience. The importance of owning the right assets A-grade asset held their own during the downturn of 2020 Maintained value and or quickly clawed back any losses in both value and rents. Improved exit strategies and were easier to rent Moving forward A-grade homes and investment-grade properties will continue to outperform. Houses outperformed apartments The gap between house prices and unit prices has never been so high Family-friendly apartments in medium and low-density complexes in lifestyle locations may make good investments for those on limited budgets This cycle was led by home buyers Millennials are moving to the family formation stage of their lives and buying houses (moving out of apartments) many taking out the various grants - unfortunately many bought in c and d grade locations and won't get the benefit of capital growth many of these didn't have savings and good money management.  Disappearing middle class Look at the demographics of where you invest - look for affluence score of neighborhood After this boom, we'll enter a 2-speed property market. Some have not been affected by coronavirus and others have not The neighbourhood is important - avoid dormitory suburbs don't be left with a secondary property at the end of this cycle - maybe it's time to swap  Immigration is not as important as we thought it may be Despite our borders being closed property value to keep rising, and this was mainly because of upgrade is taking advantage of low-interest rates and Covid changing our requirements for accommodation. This also suggests that in general and markets are slightly undersupplied and when the borders open will be significantly undersupplied and this will underpin property price growth The social transformation of work from home Again reinforces the importance of neighbourhood Need bigger accommodation and a zoom room The benefits of maintaining good health both physically and mentally and not being afraid to reach out Building costs will rise Understand your real strengths particularly in business and learn to be flexible to leverage these skills The power of being a good negotiator. Wage growth, business supply agreements, finding the low hanging fruit ie renegotiated interest rates on loans Links and Resources: Michael Yardney Buy Michael’s latest book – Negotiate Influence Persuade Ken Raiss- Director Metropole Wealth Advisory Get Ken Raiss to build you a Strategic Wealth Plan 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: Even more property lessons we learned this year from Covid, with Ken Raiss Some of our favourite quotes from the show: “If you want to become wealthy, you really have to use the power of compounding and leverage.” –Michael Yardney “There’s a whole range of new gurus – that happens every time the property cycle moves on.” – Michael Yardney “Unless you grow out to where it is, you end going back to where you are.” – 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 naysayers and the property pessimist were proven wrong – again! Despite prolonged lockdowns, no immigration, no international students, the threat of high unemployment, and all the pessimistic predictions for our housing markets, the value of many houses around Australia grew by more than 20% in the last year alone. Obviously, these are unprecedented times, and we can’t blame some of those who made predictions early in the pandemic for getting it so wrong, but now that it seems that we are over the other side – across the bridge that Scott Morrison said he would build for us - what property lessons can we learn from Covid to make it better property investors. That’s the topic of my chat today with Ken Raiss, Australia’s leading property tax strategist and director of Metropole Wealth Advisory as we share 20 insights we’ve learned from Covid-19 Top property lessons we learned from Covid-19 The last two years have been among the most tumultuous in living memory, and yet Australia looks set to emerge better placed than almost any other country and our property markets have surprised almost every commentator on the upside. So, what can we learn from this? The property market is too big to fail - the government and the banks have a vested interest in the property market, so they stepped in when things got tough The supply of money is important in fuelling our property markets The wealth effect is important for consumer confidence and the government understands this - those who hold assets have benefited from government stimulus - you want to be in the market The government has realized that it can spend its way out of a recession – make people feel wealthy and they will spend money in the wheels of industry go around Those in the knowledge-based economy, who could work from anywhere because they sold what was in their head rather than make money by using their hands, could work anywhere and more and will continue to do so. You can't rely on one income stream Cashflow buffers are important – Having plenty of cash savings provides a safety net in case your income unexpectedly falls, or a large expense crops up. Financial security gives you a ‘sleep at night’ factor – Building a nest egg outside of the home and compulsory super provides greater financial strength to weather any storms. You can expect the markets to correct Don’t try and time the market –You can’t time the market and investment grade properties gives more options even in periods of downturn Links and Resources: Ken Raiss- Director Metropole Wealth Advisory Get Ken Raiss to build you a Strategic Wealth Plan 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: 20 property and investment lessons we’ve learned from Covid this year, with Ken Raiss Some of our favorite quotes from the show: “For most of the investment properties, and for most people’s homes, the bank owns as much as the owner does.” – Michael Yardney “I think one of the lessons here is get a good education because it’s going to see you through life.” –Michael Yardney “Of course, in an ideal world, you’d like to be able to forecast, you want to know what’s ahead. But we can’t, there are just too many moving parts.” – Michael Yardney 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

Do you want to learn some investment lessons from somebody who’s been in the property game for almost 50 years? You’d hope to get some great insights and perspectives, wouldn’t you? Well, that’s what you going to get in today’s show, but it’s a little bit different from normal. As you know I normally interview guests or have my little chats with you in this podcast, but I was recently interviewed by Pete Wargent, a regular on this show, for his new podcast. And you won’t be surprised in learning Peter asked me some astute questions and got me to share some things I don’t think I have discussed in public before, including some war stories. Peter is a great interviewer and I’m sure his audience got benefit from our chat, so I asked Pete for permission to run this particular episode of his show - Pete Wargent’s Property Pod - as part of Michael Yardney Podcast - so welcome to today’s show and enjoy. Topics Pete and I Discuss: Michael’s childhood and family background Michael’s family came to Australia from Israel when he was three His parents got their first home when he was eight How the idea of property investment came to Michael Michael was impressed by the real estate agents when his parents moved house He thought that he wanted to do that as well He also realized that his friends’ parents were wealthy compared to his and that they invested in real estate How Michael got the idea to put his experience and ideas into a book Why Michael thinks we self-sabotage We feel we deserve a particular level of wealth (wealth thermostat) and sabotage ourselves when we rise above it The first house Michael bought and the price he paid How Michael would advise someone thinking of getting into the market today Get into the property market sooner rather than later Learn the importance of delayed gratification Increase financial literacy Don’t worry so much War stories from getting involved in commercial developments What Michael mainly focuses on investing in now What Michael’s endgame is No longer investing for himself Instead, he’s setting up for intergenerational wealth Charitable giving is also important What Michael thinks will happen to the property market next year and over the next 10 years What Michael thinks of the upcoming election 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 Subscribe to Pete Wargent’s Property Podcast on Apple here or Spotify here Shownotes plus more here: Lessons from a 50-year property veteran with Pete Wargent Some of our favourite quotes from the show: “I saw things at home and I saw the way other people did things, and I thought no, I actually want to do it like my friends’ parents were doing it.” – Michael Yardney “I’d suggest that the sooner you get into the property market, the better.” –  Michael Yardney “I bought my first property in 1971 or 1972 – and now after 50 years, I finally got it 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

Success is nothing more than a few simple disciplines practiced every day, while failure is simply a few errors in judgment, repeated every day. If you think about it, it’s the accumulative weight of our disciplines and our judgments that leads us to either fortune or failure. So how can you become more successful in life, investing, or in your business or profession and have a lower chance of failure? One of the best ways I know is to study successful people, or even better is to study failures, and then have a mentor by your side to make sure you keep doing the right thing. In today’s show Mark Creedon, founder of Business Accelerator Mastermind and one of my coaches and mentors, and I are going to share with you a list of things we believe you need to understand about investing, the economy, and business. This is really a follow-on from the last chat we had together a few weeks ago where we discussed 24 things we felt you should know and these were based on the musings of Morgan Housell, my favorite finance writer. Judging by the number of downloads that podcast got it was very popular and I’m sure you’ll gain some insights from my chat with Mark today whether you’re a beginning or an experienced investor or a businessperson. Economic and Business Success Lessons Investment banker Dresdner Kleinwort looked at analysts' predictions of interest rates and compared that with what interest rates actually did in hindsight. It found an almost perfect lag. "Analysts are terribly good at telling us what has just happened but of little use in telling us what is going to happen in the future," the banker said. It's common to confuse the rear-view mirror for the windshield. Study successful investors, and you'll notice a common denominator: they are Masters of Psychology. They can't control the market, but they have complete control over the grey matter between their ears. Try to learn as many investing mistakes as possible vicariously through others. Other people have made every mistake in the book. You can learn more from studying the investing failures than the investing greats. "Investor Dean Williams once wrote, "Confidence in a forecast rises with the amount of information that goes into it. But the accuracy of the forecast stays the same."  No one on the Forbes 400 list of richest Americans can be described as a "perma-bear." A natural sense of optimism is not only healthy but vital. How long you stay invested for will likely be the single most important factor determining how well you do at investing. When you think you have a great idea, go out of your way to talk with someone who disagrees with it. At worst, you continue to disagree with them. More often, you'll gain valuable perspective. Fight confirmation bias like the plague. 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 the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Morgan Housell’s article mentioned in the show: 122 Things Everyone Should Know About Investing and the Economy by Morgan Housel Shownotes plus more here: 7 more investing, economic, and business lessons you must understand with Mark Creedon Some of our favourite quotes from the show: “It's common to confuse the rear-vision mirror with the windshield.” – Michael Yardney “Rational people don’t act rationally when it comes to money or investing.” – Michael Yardney “I think nature has made most of us pessimists.” – 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

One way of getting more finance as a property investor is to get a higher valuation on your properties. So how do you go about this? How does a valuer evaluate your property – what do they like to see, what adds value, and what makes them nervous? These are some of the questions I’m going to ask my guest today, Belinda Botzolis, a valuer with one of the leading national firms of valuers, but as you’ll soon find out, Belinda is far from a conventional valuer. And even if you’re not about to get a valuation or revaluation, I’m sure you’ll find the property tips Belinda has to offer of real value and there’s a little bombshell Belinda will leave us with at the end of our chat – but you’ll have to wait till the end to hear that. I’ll also share my popular mindset message with you at the end of today’s show. Valuation with Belinda Botzolis In my chat with Belinda Botzolis, a valuer, we get a sneak peek behind the curtains of what they do, how they value property, and what you can do to improve your valuation. Topics Belinda and I discuss: How Belinda decided to become a valuer After turning to a page in her university’s guidebook that explained the Bachelor of Business Property Economics degree and speaking to a family friend who was a valuer, Belinda knew what she wanted to do. When Belinda bought her first property She was 22 She chose an investment property that she and her husband would eventually like to live in They could have borrowed more, but knew the home wasn’t a forever home, just a first investment, so sensibly did not overextend. Belinda’s advice for those new to the market: It will feel like it’s never going to happen, but it will Have a plan b, a plan c, and a plan d What people ask Belinda when they find out she’s a valuer “Why do you undervalue my property?” People don’t realize that property valuations are based on what the property would be worth if it went on auction today. The risks that valuers look at The unusual properties that Belinda has valued Hoarder homes are most likely to strike Belinda as unusual What does and doesn’t add value to a home Getting the kitchen and bathroom right matters most Adding a pool might add value, but not enough to give you a return on the investment Whether aspect and orientation matter The north aspect is key Main and secondary roads are risk-rated. Valuers don’t like them. Off the plan properties and house and land packages in the outer suburbs can get knocked back by valuers Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Discover how valuers assess your property so you can maximize your borrowing capacity, with Belinda Botzolis Some of our favourite quotes from the show: “Just like there’s never a perfect property, there’s never a perfect time to invest, either.” – Michael Yardney “Giving up too easily is a bad habit you should avoid.” – Michael Yardney “It’s important to ditch unhealthy lifestyle habits.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What’s ahead for our property markets? If you’re like most property investors, you’d probably give your second garage to know what’s in store now that our markets seem to have moved to the next stage of the property cycle. Sure, our markets are still booming, but there seem to be more headwinds ahead. In light of that, in today’s show, I’m going to answer the question: where should you buy your next investment property? And even if you’re not planning to buy soon, I think this episode will be informative for anyone who’s interested in property. I’ll also share my mindset message about things I would have liked to know at the beginning of my investment journey. Where would you invest in property in Australia today? Where, what location, and what would you buy, and why? And by the way…is real estate still a good investment in Australia? These questions were recently posed to me by journalists, and I can understand why – they are common questions investors are asking today and they make great headlines for articles. Everyone would like to know how to find the best property investment locations or Australia’s best growth suburbs. However, statistics show that around 50% of all property investors sell up in the first five years, and of those that stay in the market, 92% never get past their first or second investment property. So, if you want to outperform the average investor, if you want to develop financial freedom through property investing, then don’t start by selecting a location, or looking for that ideal property. Things must be done in the right order – and selecting the property comes right at the end of the process. My first recommendation to anyone asking where to invest is to sit with an independent property strategist to formulate their plan. The benefits of creating a plan with an expert include: It will help you define financial and investment goals. You’ll discover whether those goals are realistic. You’ll find out what you’ve done right and what you’ve done wrong along your financial journey. You’ll be able to measure your progress towards your goals. Your plan will help you identify risks. Understand the three important parts of your investment equation: Your budget Location  The right property  Be aware that investors usually need to compromise on at least one of the above. So, what about that journalist’s question- “Is real estate still a good investment? While most property markets around Australia have performed strongly so far this cycle (other than the inner city of high-rise apartment market), it’s important to realize that moving forward we are likely to have a 2-tier property market. In other words, not all property markets will continue growing strongly moving forward. Properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, will outperform cheaper properties in the outer suburbs. While the outer suburban and more affordable end of the markets have performed strongly so far, affordability is now becoming an issue as the locals have had minimum little wages growth of the time when property prices have boomed. As their priorities change, some buyers will be willing to pay a little more for properties with “pandemic appeal” and a little more space and security, but it won’t be just the property itself that will need to meet these newly evolved needs – a livable location will play a big part too. Considering locations I would not be investing in regional Australia or in the smaller capital cities. But more than that I look for an affluent demographic who will be able to and prepared to pay more to buy or rent in these suburbs. I don’t like to fight the big trends. Why fight with the gorilla? Other important drivers of capital growth include supply and demand, infrastructure, livability, and amenity. I look for suburbs where wages (and therefore disposable income) are increasing above average. These will either be: Discretionary Locations These are the most expensive locations in our capital cities – the “established money” locations where most of the residents have lived for a long time and where many residents have paid off their home loans years ago. Aspirational Locations These are the upper-middle-class areas and gentrifying locations of our big cities. On the other hand, I would avoid investing in the more affordable locations as this end of the property market underperforms over the long term with regards to capital growth and rental growth because many of the owners are young families who have stretched themselves to their financial limits and are often only a week or two weeks away from broke. People will pay a premium to be in the right neighborhood What about choosing a property in your preferred location? In general, there are 3 types of property. A grade properties are the type of assets you want to own, and the type of properties where great tenants want to live, not because they need to, but because they want to and are prepared to pay extra to live there. B grade properties still have a lot going for them, and during hot property markets like we are currently experiencing they still perform well, but their second location within their suburb or the less than perfect attributes of these properties mean they will slump more in downtimes. C grade properties – these are to be avoided unless they’re in a great neighborhood and your intention is to demolish the property and replace it with something more appropriate for the location. Here are some of the factors to look for when selecting an investment-grade property: Buying below the property’s intrinsic value A high land to asset ratio A property with a twist A property where you can manufacture capital growth through renovations or redevelopment. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Where should you buy your next investment property at this stage of the property cycle? Some of our favorite quotes from the show: “You see, property investing is a process, not an event.” – Michael Yardney “When selecting a location, I would initially start by eliminating locations.” – Michael Yardney “You shouldn’t be doing what everyone else does, because otherwise, you’ll get the same results they do.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

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