Property Investment, Success & Money | The Michael Yardney Podcast

Even before property prices started skyrocketing in the past year, buying a new home was unaffordable for many young Australians And today, with the huge surge in prices we’ve experienced, the dream of homeownership feels like it’s moving completely out of reach of many young families. So, are we moving into a society of property haves and have nots? Well, that’s one of the topics I’m going to be discussing on today’s show with Federal Parliamentarian Tim Wilson who has been outspoken with his views on housing and superannuation.  And, interestingly as you’ll hear, one of his roles as Chair of the House of Representatives Standing Committee on Economics is overseeing Philip Lowe, the Governor of the Reserve Bank. We’re going to be discuss a range interesting topics, and then at the end, I’ll leave you with my mindset message. Interview with Tim Wilson In today’s show, I talk about the future of housing and tax in Australia with Tim Wilson who has served as the Federal Liberal Member for Goldstein since 2016 and currently serves as Chair of the House of Representatives Standing Committee on Economics. Now I must declare that Tim is my local member of parliament, but I don’t want today’s show to be a political discussion, however, I am interested in an insider’s view of what’s going on with the economy and in particular our property markets. Some of the topics Tim and I Discuss: Why Tim got into politics His concerns about the future of the nation What he’s learned about how political philosophy affects practical reality. Why Tim is so passionate about homeownership The belief that in Australia people have a right to own a home The rising gap with young Australians not easily able to get into their first home Whether the wealth gap is causing more political problems. Why homeownership is political The long-term trends around homeownership The barriers to homeownership How homeownership is tied to debates on super Tim’s previous outspokenness on superannuation The design of the superannuation system What superannuation is for Where the economy is headed The difference between what the data says and what people are experiencing on the ground Resources: Michael Yardney Tim Wilson – Member of Parliament 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: A politician’s view of the housing affordability debate with Tim Wilson MP Some of our favourite quotes from the show: “We’re losing the middle class, so the rich are getting richer and the middle class are disappearing a bit.” – Michael Yardney “Fortunately, the pessimists were let down when Australia’s last quarterly GDP figures came in at a 0.7% growth for the June quarter.” – Michael Yardney “How do you know when you’re an expert? When you can consistently get the same result in any market.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

You have probably heard about IQ before. You may even have taken some free online quiz that promises to reveal how smart you are compared to Albert Einstein or Stephen Hawking. So, exactly what is IQ? How is it measured? And does it really matter? That’s what I’m going to chat with Tom Corley about in today’s Rich Habits Poor Habits podcast. And you’ll be pleased to learn that your IQ or your intelligence isn’t fixed. There are things you can do to increase it and other things that you may be doing that could decrease it. Let’s start with a quick disclaimer… Having a lower IQ doesn’t mean a person is unable to have a high quality, successful life, and vice versa. Most people have the capacity to learn regardless of their intelligence quotient score. However, some are simply able to learn more quickly or more easily than others. Some people may struggle in one area and have a weakness in one or more types of intelligence while they’re very successful in other areas. I love Albert Einstein’s famous quote when he said: Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid. Can You Really Increase Your IQ? There’s science behind the idea that you can grow your IQ. Certain activities that force your brain to work can increase the number of dendrites your brain cells produce, as well as the number of branches on the axon trunk. Activities that grow your IQ include: Exercise, particularly aerobic exercise Learning activities (auditory, kinetic, tactile, and visual) Practicing existing skills Novel activities Traveling Learning something new Activities that decrease your IQ include: Watching TV Not reading Scrolling social media Sleeping too much Inactivity Wasting time Being close-minded It’s easier to increase your IQ when you’re younger, and it’s more difficult as you get older. However, it is definitely possible even as you get older. It’s really your habits that determine your genetics. Links and Resources: Tom Corley - Rich Habits Michael Yardney - Metropole Get your own copy of our international bestseller Rich Habits Poor Habits 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:  Yes, it’s true! Here’s how you can improve your IQ | Rich Habits, Poor Habits with Tom Corley Some of our favourite quotes from the show: “It’s not really a competition with other people, how you compare. We don’t want to do it that way.” –Michael Yardney “Your IQ isn’t fixed at birth, and it’s really your habits, not your genetics, that are going to determine your intelligence.” – Michael Yardney “Nothing’s as painful as being stuck where you don’t belong.” – 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 a property investor, businessperson or entrepreneur you need to understand more than your craft. But you also need to keep an eye on Australia’s economy and while the variables influencing our economic growth are numerous and complex there is one particular driver whose overwhelming influence has the final say – and that’s demographics. Yet I’ve found the significance of demographics is perhaps underappreciated by most investors, which is unfortunate given its impact can be found in almost all aspects of our economy and property markets, from economic growth and consumption to interest rates and valuations, and even to the velocity of money and the balance sheets of the world's central banks. Demographics is what ties it all together. I guess because these trends are slow moving and long-term and not easily visible, they tend to be ignored by many, but they shouldn’t be and that’s why I have my regular chats with leading demographer Simon Kuestenmacher. Today we’re going to talk about some recent forecasts that will have a significant impact on our economy, employment, and our property markets. Then I’ll share today’s mindset message with you. These projections reveal Australia’s economic future As a property investor I’ve been a lifelong student of demographics because demographic changes influence the underlying growth rate of the economy, our unemployment rate, they directly influence housing market trends, living standards, our savings rates, consumption and the demand for financial assets As you can see, demographic creates our destiny so if you want to become a successful investor you must understand what demographic changes are ahead, and that’s why I enjoy my regular chats with Simon Kuesetenmacher the co-founder of The Demographics Group, who’s columns and media commentary focus on current socio-demographic trends and how these will impact Australia. Today’s chat is about the latest five-year employment projections from the National Skills Commission. Our workforce is projected to grow by almost a million people over the five years from November 2020 to November 2025. That figure is a bit weaker than the growth leading up to the pandemic (1,154,000) but it suggests that we should be cautiously optimistic about our economy. More than half (53 percent) of the new jobs require a university-level education. These jobs can only get filled help via migration. Currently, 15 percent of all jobs are part of the middle class The projected growth falls way short of expectations, as only 7 percent of new jobs will be middle class. A favourable working age population will boost economic growth and provide inflationary pressures An unfavourable demographic makeup will impose deflationary pressures on an economy and provide a headwind to economic growth. A quarter of all new jobs fall into the healthcare sector. The hospitality sector is projected to have fully recovered by 2025 and even slightly improve on pre-pandemic levels. Professional services are adding plenty of jobs for highly trained workers. The two biggest growth occupations are aged and disabled carers and registered nurses, which together will grow by over 100,000 jobs. We are adding about 1000 new carer jobs every single month. Considering more elderly retirees will be keen to continue living in their own homes, the opportunities for innovative in-home care services are endless. Nurses will continue to be in high demand More than half of the new jobs we’re creating fall into skill level one. We’re also creating a lot of skill level four jobs – a quarter of all jobs will be in skill level four. We’re creating some jobs, not too many, in skill level five jobs – very low-level jobs. Optimistic drivers of our economic future: Demographic profile We have this big millennial cohort that saves us from the immediate impacts of the pandemic simply because the millennial cohort, the largest cohort happens to be on this stage of a life cycle where they purchase housing. Students will return, and international talent will come back The international market completely evaporated due to the pandemic. The good news is, as soon as borders open up, the students will be back at pretty much pre-pandemic levels, which will bring life back into the inner cities 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. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: This new research makes Australia’s economic future clear, with Simon Kuestenmacher Some of our favourite quotes from the show: “I think a favourable working-age population is going to be really important for us too.” – Michael Yardney “We’re going to be seen as a safe country to live in, an economy that’s going to boom, and we’ll be attracting the sort of people who probably in the past would have gone overseas to have their high-paying jobs.” – Michael Yardney “Those that battle through the challenges get to reap the rewards.” – 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  

Is this the beginning of the end of the property boom? If you’ve been following the property news lately you be forgiven for thinking so. The Chiefs of two of the biggest banks have suggested that regulators should step in and introduce macro-prudential controls to slow down our booming housing markets. In the closing statements of the ‘Housing Market and Financial Stability’ speech delivered by the RBA’s Assistant Governor Michele Bullock on Wednesday, Bullock hinted at the possibility that the RBA could intervene in Australia’s housing market. The International Monetary Fund has issued warning about Australian house prices and Digital Finance Analytics principal Martin North gave a chilling forecast that home prices in Sydney and Melbourne outer suburbs could fall a staggering $200,000 while the crash could be even worse for apartments when lending rules were tightened. So, should we be scared? That’s what I’m going to be chatting about with Australia’s leading housing economist Dr. Andrew Wilson today. And here’s a spoiler alert – NO you don’t need to worry! Now if you have been a subscriber to this podcast for a while or followed my blogs or YouTube videos, you’d know for the last 3 years I have recorded a weekly Property Insiders video chat with Dr Andrew Wilson. And his assessment of and forecasts for our economy and property markets have been remarkably accurate so whether you’re a beginning property investor or an experienced I’m sure you’ll benefit from my chat with Andrew today which is the audio of one of our recent Property Insider videos. However, since we recorded this video Federal Treasurer Josh Frydenberg has given the green light to introducing macroprudential curbs to mortgage lending. The last time lending restrictions were implemented in 2017, the focus was on dampening investor lending and the high percentage of interest-only mortgages. However, this time around the main concern seems to be an increasing share of loans on a high debt-to-income ratio. 22 percent of new mortgage holders now have debt that exceeds their income by more than six times, up from 16 percent a year ago. But, as you’ll hear Andrew Wilson explain in our chat, regulators should be aware of unintended consequences. Their crackdown is likely to hit first home buyers rather than Australia’s wealthy. Targeting debt-to-income ratios will have a limited impact on higher-wealth households, who often have multiple streams of income. However, it will affect lower-income households and those purchasing property for the first time. There are several reasons the debt-to-income ratios have risen over the past year. Firstly, low interest rates by their nature allow people to service more debt as repayments fall. And second, the share of lending to first-home buyers has increased significantly on the back of HomeBuilder, the federal government’s First Home Loan Deposit Scheme, and individual state government incentives. First-home buyers tend to be more indebted as they stretch to get into the market. Given improving homeownership rates is the goal of these government schemes, it seems counterproductive to limit first-home buyers by reducing their ability to borrow. And another reason that debt to income ratios have increased is that many established homeowners have upgraded their homes over the last year or two, partly because of the low-cost borrowing, partly because the value of the home has increased considerably given them equity to upgrade and also because of the increased requirements for more space such as a zoom room, etc. My Property Update Chat with Andrew Wilson Looking back over the first 9 months of this year, our property markets have performed even more strongly than anyone ever expected, with the rates of house price growth at levels not seen for a number of decades. In fact, all capital city markets have already experienced double-digit capital growth so far this year and many locations will experience growth of more than 20% over 2021. Of course, it must be remembered that the last peak for our property markets was in 2017, and in many locations, housing prices remain stagnant over the ensuing couple of years and it was really only earlier this year that new highs were reached. Meaning that average price growth was unexceptional over the long term. But over the last week or two, there seems to have been a sudden change of sentiment about our booming housing markets. A sense of urgency has crept into the tone of those at the helm of our big banks, as the CEOs of two of Australia’s largest banks have sounded off about emerging lending risks. Topics We Discuss on Today’s Show: Whether or not the high debt-to-income ratios of home buyers is really a problem Price growth has averaged a modest 4% per annum since 2017 – despite record falls in mortgage rates over that period Monthly house price growth in most capital cities has halved over the past three months and continues to track downwards The Reserve Bank does not have a role in setting house prices. The RBA’s mandate to stimulate employment which currently means keeping interest rates low The Australian Prudential Regulatory Authority, and its purpose of making sure the banks are operating soundly and there is no deterioration in lending standards. There seems little to be concerned about current lending practices as interest-only loans are essentially a non-issue these days, and with rental vacancies at near-record lows, the market needs property investors. Why more Aussies are joining the millionaire club as Australian household wealth reaches record levels, and what that means Resources: Michael Yardney Dr. Andrew Wilson, chief economist My Housing Market As our property 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. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: Uh-Oh. Is this the beginning of the end of our property boom With Dr. Andrew Wilson Some of our favorite quotes from the show: “You see, targeting debt to income ratios will have limited impact on higher wealth households.” – Michael Yardney “We’re doing our homework, we’re doing our research, we’re doing a lot online, and we’re just making quick decisions.” –  Michael Yardney “I’ve seen it over and over again that unless you grow out to where it is, you end up 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 general theme of my podcast is property investment, success, and money. But today’s show is more about you. If you’re like many Australians you’re sick of Covid; and by that I don’t mean sick with Covid. But sick of the limitations, the restrictions, the lockdowns, the inability to get on with your life or your investing, or your business. I know many of us are feeling angry, cross, or frustrated and that’s why today I’m having a chat with Rhonda Britten who is a repeat Oprah guest, a TEDx speaker and an Emmy award winner. And even if you’re coping well with Covid you’ll love this chat today as I’m sure Rhonda will give you some ideas to make your life even better. Rhonda Britten is not just another American “Rah Rah” motivational speaker, but she’s the real deal as you’ll find out in my chat with her today, so welcome to today’s show. What Rhonda Britten has to say about fearless living Rhonda presented 2 sessions for my team at Metropole over the last month and my team were so taken by her inspiring message I invited Rhonda to pass on her message to you through this podcast. Currently many of us are being challenged by lockdowns, restrictions and uncertainty. This too shall pass, we know there is an end in sight and that’s most likely when 80% of Australians will be vaccinated. But we’re not really sure of the timing of this and if life will really get back to normal, so how do we cope between now and then? Rhonda’s history and why she’s qualified to give this kind of advice and information Rhonda shares her traumatic personal history, how it affected her, and what led from that Advice for Australians who are feeling that they’ve lost control of their lives Understanding the importance of letting go of things that aren’t actually under our control Releasing the things that we can’t control leaves room for us to take responsibility for what we can control Whether fearless living is really possible The importance of learning and identifying the ways that fear shows up in our lives The Stretch, Risk, or Die exercise and what it’s for Why it’s important to eliminated negative self-talk How to move yourself forward Rhonda’s favourite exercise, Acknowledgements What we can do to better deal with anger How anger can be in service to freedom   Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Rhonda Britten – www.FearlessLiving.org   Download Rhonda Britten’s free guide – www.FearlessLiving.org/risk Shownotes plus more here: Fearless living in challenging times with Rhonda Britten Some of our favourite quotes from the show: “We’re worried, we’re scared, we’re stressed, and we’re continuously bombarded by negative messages in the media.” – Michael Yardney “I think the other thing is, a lot of people feel they’ve lost control over their lives.” – Michael Yardney “Feelings are just energy, so you want to move that energy through you.” – Rhonda Britten 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’ve been following the Real Estate columns in the media recently it would have been hard to miss stories about mortgage stress and rising interest rates. Of course, it’s the same property pessimist chasing a headline giving biased views based on the preconception that our property markets are about to crash and backed up by very small sample sizes of data. So in today’s show, Dr. Andrew Wilson and I will discuss not just our views but those of the Reserve Bank – so at the end of our chat, you’ll have a good idea about the direction of interest rates in the medium-term. We’ll also discuss a comment by Assistant RBA Governor Luci Ellis who recently lashed out at the Federal Government suggesting negative gearing and Capital Gains Tax discounts essentially encourage speculative investment and are fuelling property price growth. Really! Now if you have been a subscriber to this podcast for a while or followed my blogs or YouTube videos, you’d know for the last 3 years I have recorded a weekly Property Insiders video chat with Dr. Andrew Wilson. And his assessment of and forecasts for our economy and property markets have been remarkably accurate so whether you’re a beginning property investor or an experienced I’m sure you’ll benefit from my chat with Andrew today which is the audio of one of our recent Property Insider videos. I’ll leave a link in the show notes so you can see all the charts that support the information we’ll talk about, but in general, that won’t be necessary – Andrew explains his position well. I’ll also be sharing my regular mindset message where I’ll explain why being rich is a choice.  So welcome to today’s show. Has unemployment really improved? Officially Australia’s unemployment rate is at its lowest level in almost 13 years, despite half the country being in the grips of lockdown. However, these figures don’t really reflect what’s happening on the ground where things have been getting worse for Australian workers. The headline unemployment rate is no longer a good representation of the jobs market, falling in August despite workers doing it tough. As lockdowns were implemented, more Australians worked fewer, or no hours and underemployment rose. It’s not surprising that the labour market took a beating as businesses closed their doors. In August, the participation rate dropped from 66 to 65.2 percent, with 211,188 fewer people in the labour force than in the June survey. On top of people simply ceasing looking for work, those in the workforce are seeing their hours drop, particularly in locked-down areas like Victoria and New South Wales. Hours worked nationally fell by 3.7 percent last month, though NSW bore the brunt of the losses, with hours worked down 13 percent since the lockdown started. Interestingly people working just one hour per week are technically classified as employed, even though clearly, they wouldn’t consider that to be the case if you asked them. Rate hikes are further away than you think A number of the regular property pessimists are doing the rounds of the media chasing headlines telling anyone who is willing to listen that many Australians will fall into mortgage stress when interest rates rise and that this will occur sooner rather than later. However, Governor Lowe once again asserted that this won’t happen any time soon. He said he finds it difficult to understand why the market is pricing in rate action 2022 and 2023 and confirmed that interest rate will only rise when inflation hits the target of between 2.5% to 3% and stays there for some time. Clearly, our rising house prices are not going to affect the RBA’s interest rate decisions and Governor Lowe confirmed that house prices and housing affordability are not the domain of the RBA. Here’s what causing our property boom. Assistant RBA Governor Luci Ellis recently lashed out at the Federal Government suggesting negative gearing and Capital Gains Tax discounts essentially encourage speculative investment and are fuelling property price growth. These interesting comments at a time when the number of investors is below historical averages, and the government has supported first home buyers to get into the market. Property Listings are rising Watch this week’s Property Insider video as Dr. Andrew Wilson and I discuss the surge in listings of properties for sale that has suddenly occurred. It will be interesting to see how these extra properties for sale will affect property price growth, however as most sellers are also buyers, I see significant market depth ahead and higher prices at the end of this year. Resources: Michael Yardney Dr. Andrew Wilson, chief economist My Housing Market As our property 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. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: Have you heard the one about rising interest rates? With Dr. Andrew Wilson Some of our favorite quotes from the show: “That is interesting, considering how we are hamstrung, how well the markets have done.” –Michael Yardney “I think there’s been a change in sentiment from vendors recently, and they’re now coming back to the markets.” –Michael Yardney “The words that you use have a surprisingly profound impact on how much wealth you obtain.” 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

In today’s podcast we’re going to take a deep dive into the Brisbane property market with two of my regular guests, Stuart Weymss and Brett Warren. After a number of years of sluggish growth, Brisbane has been one of the strongest performing property markets over the last year and is likely to continue to be amongst the top performers over the next few years. Today you’ll hear that recently Pam and I bought a property in Brisbane, as did Stuart Wemyss, and while this isn’t a recommendation that you should be buying in Brisbane as I don’t know your circumstances, I think it will be informative to understand the thought process that I went through. So even if you’re not interested in buying property in Brisbane at the moment, as an investor I’m sure you’ll benefit from the insights shared by these two experts. Property Investment in Brisbane While there are many great property investment opportunities in Australia, the Brisbane property market has been receiving more than its fair share of attention recently. Brisbane had already been one of Australia’s best performing property markets this year even before it received the news of becoming host to the 2032 Olympics. So will this add more fuel to the fire, will Brisbane finally enjoy it’s time in the sun, or will it remain the poor cousin to the big property markets of Melbourne and Sydney? I would like to start with a little disclaimer, there are many great investment markets in Australia, and I believe as you build a substantial property portfolio you should diversify and have assets in all our big capital cities – Melbourne, Sydney and Brisbane. In today’s show, we’re just going to talk about Brisbane. Pros and Cons of investing in Brisbane property: Pros: Increased interstate and overseas migration Large infrastructure spending The city was overdue for growth as it's matured in recent years with billions of dollars in infrastructure projects in the pipeline that will be transformational for the city that has seen significant population growth, Better affordability Increasing job opportunities – no need to leave Brisbane anymore Lower stamp duty Higher rental yield Brisbane’s changing culture Brisbane is well-known for its outdoor lifestyle, especially the plethora of dining options along the Brisbane River in residential and restaurant precincts such as Teneriffe, Bulimba, New Farm, and West End. Cons: Smaller city than Melbourne and Sydney Fewer Job opportunities The Olympics don’t guarantee house price growth The direct benefit of the 2032 Olympic Games will vary considerably by location, underpinned by predominantly new infrastructure development projects and the subsequent downstream economic and lifestyle benefits that they provide. The 2032 Games are expected to support 91,600 full-time equivalent jobs in Queensland and 122,900 nationally. It is often the case that improved labor market conditions result in improved property market conditions, as more jobs lead to greater collective debt serviceability levels, though the broader economy will dictate this, and it will undoubtedly be influenced by the global economy at the time. The prospect of billions of dollars of planned infrastructure now being brought forward because of the Games will be a big driver of house prices. Major infrastructure projects tend to have an uplifting effect on property prices as the projects create jobs, strengthen travel links, and improve amenities such as retail outlets and social venues. What interstate investors need to know about Brisbane There is not one Brisbane market, and the Gold Coast and Sunshine coast are not Brisbane The majority of the new infrastructure projects (before the Olympic games) are within 5 km of the CBD People are not wanting to move as far out from the city as they do in other states – more affluent inner suburbs outperform School catchments attract a premium Watch out for flooding Public transport is important Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Here’s why I just invested in Brisbane property with Stuart Wemyss and Brett Warren Some of our favourite quotes from the show: “We look for locations where there will be strong population growth that would lead to economic growth .” – Michael Yardney “You can’t assume that you can pull down the old house to build the new house.” – Michael Yardney “We’re not suggesting you look for a bargain in Brisbane, you won’t find one, it’s a very informed market.” – 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 our chat last month Australia’s circumstances have rapidly evolved so we’ve got a lot to discuss this month. And today after my chat with Pete, I’ll share my mindset message with you. The Big Picture in September We’re in unfamiliar territory. A lot remains unknown about what life will look like on the other side of our lockdowns. This time around it looks like we’re not exiting into a COVID-zero world so we don’t know what that really means; how households will spend their money, how many businesses will close, what mobility will look like. Basically, we’re in uncharted waters. Yet despite what is now 3 months of lockdown in Sydney and Melbourne in lockdown number 6 – in fact with more Australians in lockdown than are not – our real estate markets are still in good shape. Of course, there are concerns that as restrictions drag on, they will weigh down on the housing market and household financial situations. But so far there are very few signs of housing distress when compared to last year: loan deferrals are at a fraction of the first lockdown, property price discounting is minimal and there is a relatively low number of distressed sales. In fact, property values increased in all our capital cities over the months of lockdown. There seems to be a recognition that the lockdown doesn’t go on forever, and that once the vaccination rate gets past a critical number our economy will re-open. There seems to be less fear around losing jobs and greater confidence that house prices can be resilient, and, on balance, our property markets are holding up much better than they did last year. Some of the topics I discuss with Pete: What it’s like to live in a place that’s not in lockdown How Australia side-stepped a recession The shape of the recovery The effect of extended lockdowns on the economy How vaccination increases and restriction increases will boost the economy The Reserve Bank’s vision of an economic rebound The fall in job ads and the number of Australians working multiple jobs The current unemployment levels and what’s projected to happen to them The reduction of Australian credit card debt The increase in Australian savings The current activity in home loans The fact that property prices have been largely unaffected by the pandemic, lockdowns, and restrictions Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Gets your bundle of eBooks and reports here: www.PodcastBonus.com.au Join Michael’s Property Update private Facebook group by clicking here Pete Wargent  Next Level Wealth  Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: September Big Picture Podcast with Pete Wargent Some of our favourite quotes from the show: “As we entered these lockdowns many households had a stronger financial balance sheet and the housing market was at an all-time high, so Australia’s wealth was high.” – Michael Yardney “Just by the skin of the teeth, we dodged what could have been a double-dip recession.” – Michael Yardney “You’ve won the lottery by being born at this 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

Australia may just have side-stepped another recession by the skin of its teeth after recording a small uptick in GDP growth over the June quarter. After an initial “miracle” V-shaped recovery, our economy did a U-turn as much of Australia was locked down at the end of the June quarter. And economists seem united about the outcome of the current September quarter – we will be seeing a steep drop in economic output. So what’s ahead for our economy and our property markets, that’s what I’m going to be chatting about with Australia’s leading housing economist Dr Andrew Wilson today. And while you’ll hear him give six reasons why we are optimistic about the economy moving forward, you’ll also hear why we won’t have the miraculous V shape recovery many were expecting. Now if you have been a subscriber to this podcast for a while or followed my blogs or YouTube videos you’d know for the last 3 years I have recorded a weekly Property Insiders video chat with Dr Andrew Wilson. And his assessment of and forecasts for our economy and property markets have been remarkably accurate so whether you’re a beginning property investor or an experienced I’m sure you’ll benefit from my chat with Andrew today which is the audio of one of our recent Property Insider videos. I’ll leave a link in the show notes so you can see all the charts that support the information we’ll talk about, but in general that won’t be necessary – Andrew explains his position well. I’ll also be sharing my regular mindset message where I’ll discuss 5 common money myths and mistakes I’m seeing many people make. There will be a lot written in our history books about the Coronavirus pandemic, how the world changed, how we live and the economic fallout that resulted from it. Last year there were a lot of letters being tossed out about the shape of the economic recovery from the short sharp recession Australia experienced: U, V, W, etc. There was even talk of a Nike swoosh shaped recovery. Well, the recession we had last year was not a normal recession. Government lockdowns and the fear of getting sick kept consumers at home, while the shutdown of supply chains, shortages of workers, the inability to source inputs, and the sudden fall in international tourism, students and migrants devastated businesses. Then all of a sudden it looked like we experienced a V-shaped recovery marked by a steep, dramatic decline in the economy in the middle of last year (the first half of the “V“), followed by an equally rapid upturn to pre-recession levels, (the second half of the “V“). But just look what’s happened over the last few months with half of Australia in lockdown at a time that many of the government supports measures we enjoyed last year not there anymore. So, what’s next for the Australian economy and for our property markets? These are some of the questions I’ll be asking Australia’s leading housing Economist, Dr Andrew Wilson chief economist of My Housing Market Our economy lifts again and posts record growth over the year Australia may just have side-stepped another recession by the skin of its teeth after recording a small uptick in GDP growth over the June quarter. After an initial “miracle” V-shaped recovery, our economy did a U-turn as much of Australia was locked down at the end of the June quarter. And economists seem united about the outcome of the current September quarter – we will be seeing a steep drop in economic output. In today’s podcast Dr. Andrew Wilson gives 6 reasons why he’s confident about Australia’s recovery. Australia dodged a recession with strong economic growth over the last year. Australia’s economy (as measured by gross domestic product GDP) grew by 0.7% in the June quarter after rising by 1.9% in the March quarter. Over the year economy grew by a record 9.6% – admittedly of a pandemic and use low base. The level of the Australian dollar and the strength of our share market are a good indication of what’s ahead. Unemployment levels are low, and our participation rate is high Australia’s economic recovery is creating jobs. Interestingly the number of Australians working multiple jobs has never been higher, as insecure work surges. The economy is creating jobs but not necessarily the ones Australians need. The latest ABS figures have peeled back another layer on the labour market, revealing Australians are doing it far tougher than the headline number would suggest. The number of people working multiple jobs surged by 15,100 in the three months to June to its highest number on record. Over the last 12 months, the number of Australians with at least two jobs has swelled by 32.6%. Headline unemployment fell to 4.6% in July, ahead of expectations and despite lockdowns coming into force. As economists have pointed out, the ‘improvement’ has largely been the product of hordes of people giving up on finding work altogether, discounting them from the survey. It shows in the fact that over the month Australians worked 3 million hours less. At the same time, opportunities to get into the workforce are declining. On the back of eastern state lockdowns, new job ads have declined nearly 10% while total job vacancies hit a ceiling. Despite all the challenges consumer confidence is holding up well. Strong consumer sentiment is important for our property markets and for our economy in general. When we don’t feel confident about our financial futures we don’t spend, and in particular we don’t buy high ticket items like new homes or investment properties. Australians are richer than ever Rising house prices and a stronger share market and increasing dividends from stocks mean Australians are richer than ever before. Aussies have stashed their cash Over the last quarter the Household Savings Ratio eased from 11.6% in the March quarter to 9.7% in the June quarter, but thanks to lower mortgage rates and the raft of government stimulus measures rolled out over the past 18 months Aussie households are sitting on a record war chest of $1½ trillion in cash, so when we are let out of our Covid Cocoons we’ll be keen to spend it. Australians have wiped $1.1 billion from their credit card debt in a single month A surprising financial upside to spending so much life indoors is that Australians have wiped $1.1 billion from credit card debt in a single month. Coinciding with the first full month of NSW in lockdown, Australians have managed to pay off over $1 billion in personal credit card debt according to the latest Reserve Bank of Australia credit and charge card data. It seems that as households settled into lockdowns in New South Wales and Victoria during July, they locked away their credit cards and began paying down their debts. That saw credit card spending plummet 11.4 per cent to $19.5 billion in July. The value of purchases dropped by 9.29% or $2 billion in July with the total value of purchases sitting under $20 billion for the first time in 9 months, while the number of purchases also dropped by 15 million from the month prior. The lockdowns obviously offer limited opportunities to spend on credit cards and have prompted many people to prioritise paying down debts amid growing economic uncertainty. Resources: Dr. Andrew Wilson, chief economist My Housing Market Subscribe to my weekly Property Insiders video chat with Dr. Andrew Wilson – www.PropertyInsiders.info As our property 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. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: Here’s 6 reasons why we’re optimistic about Australia’s economic recovery, with Dr. Andrew Wilson Some of our favourite quotes from the show: “Another positive for our future is that Australians, in general, are richer than ever.” – Michael Yardney “Becoming financially free is about your habits.” – Michael Yardney “Money shouldn’t be feared, shouldn’t intimidate you – it’s merely a means to an end.” – 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 just starting out in property investment? What fee will you choose to pay? You’re probably hoping for none. In today’s show, we’re going to talk about learning fees that you could end up paying as a property investor. While some are obvious and paid-up front, it can quite often be the less obvious fees how much they may cost you over the life of your investment. And if you’re not looking for them, some of those fees may appear not to have a cost at all – at least not one that you discover until later. So it’s important to know how to look for them. Let’s take a look at two fees you should avoid and one that you shouldn’t 1. The Built-In Fee Beware the shiny brochures, champagne launches, rental guarantees, slick sales offices, and other false prophecies. You are paying a fee for all of this, on top of the kickbacks and commissions for all and sundry. It is all built into the purchase price. On a $1 million purchase, that means you could be giving the developer anywhere from $50,000 - $200,000 and that should be your money- not his. 2. Opportunity Cost It can be difficult to admit that we got it wrong and easier to hold onto an asset in the hope its time will come... someday! Pride, ego, and emotion can get in the way of making a logical and rational decision. Just 1% or 2% growth better growth per annum may sound like an insignificant amount, but just look at the difference it makes over decades. The results can be gobsmacking, with the learning fee running well into the hundreds of thousands of dollars, even millions in some cases. 3. Up-Front Fee Then there is the up-front fee. The concept being that you pay someone a learning fee before you just jump in. You pay them to ensure you get efficient and effective results, in the shortest possible time frame. Your independent strategist can assess your situation and provide a solution and as a result, they are paid to help you arrive at the outcome. You’ll find the most expensive advice you get is free, and the best value advice you’ll get will cost but stop you from making the mistakes the average investor makes – and this is worth a fortune. 6 More Learning Fees You Don’t Want To Pay as a Property Investor. The “Oops, I bought the wrong property “learning fee” Did you know that statistics show 20% of investors sell up their property in the first year and 50% in the first 5 years? So, you decide to sell within the first year or two and regardless of what price you sell the property for, you need to remember the huge costs associated with buying and selling real estate. There’s the stamp duty when you bought it (plus the stamp duty for the new place), legal fees when buying and selling, selling agent commissions and marketing costs and, of course, the cost of moving twice in quick succession. This means your learning fee is likely to be tens of thousands of dollars and more when you take into account lost opportunity costs. The “capital non-growth” learning fee This is the fee that you pay when you buy an investment with poor capital growth because it’s in the wrong city, suburb, or street. Perhaps it grows at 2 or 3 percent per annum when buying the right property may have achieved 6 or 7 percent capital growth – it may not seem like a lot, but adds up to more than you think. The “renovation reality” learning fee This is the learning fee that you must pay when you realize that renovations are hard work and not as easy as the reality TV shows or property blogs would suggest. This learning fee could easily cost you tens and tens of thousands of dollars as well as a waiting period of many years as you wait for the market to improve enough to get your money back. The “I got eaten by a shark” learning fee Here we have Sam and Susan, a couple of 25-year-olds who charge off to one of those investment property seminars that promise you’ll make a million dollars in six months. Instead, our bright young things end up knee-deep in cash flow tables, bank documents, and a signed investment home contract that results in their off-the-plan, out-of-town, so-called whiz-bang investment property growing at a miserable 1.3 percent per annum over the next 10 years. The learning fee in this scenario is especially scary as that “shark advice” could end up being a millstone around their necks for many years. The “buying with emotion” learning fee You can end up paying this fee in 2 ways. Firstly, when you fall in love with a property and overpay. Now while this may be allowed when you buy your home, it’s a big mistake for property investors. The second way you pay this fee is when you miss out on an opportunity because you have an unrealistic expectation of what the property’s price is and offer well below an acceptable price. The “negotiation” learning fee This is the extra cost to you when you are too afraid or too inexperienced to negotiate on price. Many property purchasers are shark bait to real estate agents who are highly trained negotiators who are taught how to get the top dollar for their clients – the seller. So what should a property investor or home buyer do? Rather than pay a learning fee to the market, why not pay a buyers’ agent to act on your behalf during your property investment journey? Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a range of my ebooks here: www.PodcastBonus.com.au  Shownotes plus more here: Warning Property investors must avoid these learning fees at all costs Some of our favourite quotes from the show: “Despite the alarming statistics highlighting how badly the majority of investors get it wrong, many investors still just want to go it alone.” – Michael Yardney “There’s definitely locations and certain properties that so far this year, despite the strong growth, haven’t been growing much at all.” – Michael Yardney “Positive thinking breeds rich 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