Property Investment, Success & Money | The Michael Yardney Podcast

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

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

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

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

Our current property boom is going to create a whole new generation of wealthy Australians. But since most people who become involved in a property boom don’t become financially independent, last week I started this special series of podcasts discussing 40 lessons I learned in the last 40 years of property investment to hopefully help make sure that you’re one of the ones who does succeed. Last week, I shared 20 property lessons, and today I’m going to share the other 20. Last week, I asked, with the benefit of hindsight, would you have bought an investment property in 1980? What if I warned you about the recessions, pandemics, and other challenges that were coming? What I wanted to share with you in this two-part series are the lessons I learned in that time period that made me a better investor. No one really knows what’s going to happen to the property markets. Don’t listen to who most property investors listen to for investment advice. Timing the property market is just too hard. It’s much better to buy the best asset you can afford and hold it for the long term. Any property can become an investment property – just kick out the owner and put a tenant in place and it becomes an investment property. But not all properties currently on the market are “investment grade” and will deliver wealth-producing rates of returns. Don’t rely entirely on property data – it can be misleading and can be twisted to say almost anything. Property investment is part science and part art – you need to understand and interpret data (science) but you also need an on-the-ground perspective to employ that data (art.) There are 4 ways you make money out of property: Capital growth, rental income, tax benefits, and forced appreciation or manufactured capital growth through renovations or property development. But these streams of income are not all equal. Tax-free capital growth is the most important. Cash flow is important to keep you in the property game, but capital growth will get you out of the rat race. You will never get rich from earned income or savings. Location will do around 80% of the heavy lifting of your property’s capital growth. Be greedy when others are fearful and be fearful when others are greedy. Don’t do what most property investors do. The majority of property investors fail. Treat your property investments like a business Don’t look for fun or excitement in your investing. Diversification is for people who don’t know how to invest. Having the right mindset is critical to investment success. While knowledge is important, successful investors take action. There are always risks associated with investing. Don’t be afraid of failing, because the biggest risk is not doing anything to protect your financial future. Don’t waste your time worrying. Most things you fear will happen never do. They’re just monsters in your mind. Never give up. You will have failures along the way – in fact, I’m a real success at failure, but each time I’m knocked down I get up again. You need resilience to be successful. Resources: Get a range of my best eBooks and reports at PodcastBonus.com.au Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: 40 property investment lessons I learned in the last 40 years – Part 2 Some of our favorite quotes from the show: “There are too many enthusiastic amateurs out there at the moment offering investment advice.” –Michael Yardney “You need to make your money work hard for you, even when you’re asleep.” – Michael Yardney “Everyone does everything with money, no matter how silly it looks, because at the time it makes perfect sense to them.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how  

It should come as no surprise that the current property boom will create a new generation of wealthy Australians. However, if history repeats itself, most people who get into property investment this cycle won’t become financially independent. Just look at what happened during the last property boom, and the ones before that. 92% of those who held onto their property never got past the second property. You can’t develop financial independence from just one or two properties. Real estate has soared in value by more than 500% in the last 25 years, but most investors failed to develop a substantial portfolio. So, I’ve put together a special two-part series to help you make the most of our property markets. In today’s show and the next one, I’m going to share with you 40 property investment lessons I’ve learned in the last 40 years to help you become a successful property investor and create lifetime wealth. Let me ask you a question… With the benefit of hindsight and knowing what you know now, if you had the opportunity to do so, would you have bought an investment property 40 years ago? I bet your answer would be yes. But what if you didn’t have the benefit of hindsight and there we both were, back in 1980 and just as you were about to invest in a property I told you that in the next year or two Australia would fall into a recession and that in 6 years’ time negative gearing would be removed only to be reintroduced a couple of years later. What if I told you there was going to be a stock market crash in 1987, and a severe recession in the early ’90s, meaning that in the first decade of owning your investment property you would have had to face all those headwinds. Of course with the benefit of my time machine and you still being back in the 1980s as you planned to buy your first property I would also warn you about the upcoming AIDS scare and the SARS pandemic, the Asian financial crisis, September 11th, the Global Financial Crisis, the Coronavirus induced world recession. Would still have had the courage to buy that property back then in 1980? The answer for many people would now be: “No…why on earth would I invest in property knowing there are so many challenges, problems, and risks ahead?” Of course, they would have missed out on some amazing wealth-building opportunities, wouldn’t they? I was already investing for almost a decade back in 1980 and I did buy another investment property that year. And over the years the capital growth I achieved from my investment properties allowed me to keep adding to my portfolio meaning that today I have a significant “cash machine” that gives me the lifestyle choices I was looking for back then. Of course, along the way, I’ve had some great investment wins but I’ve also made more than my share of mistakes. And I learned many lessons that I wish I knew back then, so here are… 40 property investment lessons I learned in the last 40 years The economy and our property markets move in cycles. Booms never last forever, neither do busts. That is mainly because most of us get swept up in the optimism or pessimism of others. Despite the ups and downs, the long-term trend for well-located capital city properties is rising values. Even though they are armed with all the research available in today’s information age, economists never seem to agree where our property markets are heading and usually get their forecasts wrong. Every year we get hit by an X factor – an unforeseen event or situation that blows all our carefully laid plans away. Then every decade or so we have a major event and the world “breaks.” There are multiple property markets in Australia. Property investment is risky in the short term, but secure in the long term. It is definitely not a way to get rich quickly Since property is a long-term game, don’t look for “what works now.” Instead, look for “what has always worked.” Residential property investment is a high growth, relatively low yield investment class. Don’t try to make it something different. At times of poor or no capital growth, strategic property investors “manufacture” capital growth through property renovations or development. Residential investment is a game of finance with some houses thrown in the middle. Taking on debt is not a problem. Not being able to repay debt is an issue, meaning cash flow management is a critical part of wealth creation. Property investment is a process, not an event. Strategic investors not only buy properties, but they buy themselves time to ride out the cycle by having financial “cash flow” buffers in place. Wealth is the transfer of money from the impatient to the patient. I must thank Warren Buffet for that quote. The media is not there to educate you, but its job is to get you to click on their links so that they receive revenue from their advertisers. So don’t rely on the media for investment strategy or advice. There will always be someone out there telling you not to invest in property. There will always be people out there telling you to invest in property. So, understand their vested interests – they don’t usually have your best interests in mind. Savvy investors surround themselves with a great team and are prepared to pay their advisors – they see it as an investment, not a cost. If you’re the smartest person on your team you’re in trouble. You are going to make investment mistakes along the way and you’ll either end up paying a significant learning fee to the market or you can pay your advisors and learn from their experience and mitigate your risks. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us  Shownotes plus more here: 40 property investment lessons I learned in the last 40 years – Part 1 Some of our favorite quotes from the show: “Don’t be surprised when the booms and the busts come around and don’t overreact.” – Michael Yardney “Over the years, I’ve found that it takes the average property investor around 30 years to become financially independent.” – Michael Yardney “Knowing what not to do, in my mind, is just as important in achieving success as knowing what to do.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

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

What a year it’s been. This time last year Australia was heading into its first recession and deepest recession in decades. Yet last week the Australian Bureau of Statistics confirmed the strength of Australia’s economic rebound. It was the fastest economic recovery from a recession in 45 years. In fact, we are one of only three countries where our economy is ahead of where it was at the beginning of the coronavirus pandemic, but today can race and I unpack the statistics and explain what’s going on – the truth behind Australia’s economic recovery. But don’t worry if you’re not into economics, my chat today with Ken Raiss, Australia’s leading property tax strategist, will be in plain English and we’ll unpack what’s going on so you understand what’s ahead- both the good and some of the headwinds that may slow us down, so that you’ll be able to make a better-informed investment, and financial, and business decisions. What you’ll be hearing today is a portion of a private webinar we conducted for the attendees of Wealth Retreat to give them some insight before they join us, and while you won’t be able to see the slides, I’m sure our description will be sufficient for you to get benefit from our chat. Australia’s impressive economic recovery from the COVID-19 recession was confirmed with the strong 1.8 percent rise in March quarter GDP. This followed unprecedented growth of 3.2 percent in the December quarter and 3.5 percent in the September quarter of 2020. Our economic output is now higher than it was before the COVID-19 recession hit, with easy monetary policy, booming commodity prices, demand for resources from the rampant Chinese economy, and fiscal policy stimulus all playing a part. Back in the first three months of this year when we had JobKeeper, enhanced unemployment benefits, and no lockdowns and Australia roared out of recession. The GDP figures released at the beginning of June, which were for the first quarter of the year up til the end of March were for the months leading up to the end of JobKeeper. Australians spent, earned, and produced an impressive 1.8% more than in three months to December, which was itself more 3.2% more than the three months to September, which was itself 3.5% more than the three months before that. Our growth of more than 8% was the most over three quarters since 1968. But it followed a collapse in gross domestic product of 7% – by far the worst since the Bureau of Statistics began compiling records in 1959. The net result over the year to March growth of 1.1%, an extraordinary result which means that, at least until Victoria’s (just extended) lockdown, we were producing, earning, and spending more than before the COVID recession. I today’s podcast Ken and I discuss: what GDP is and why so much fuss is made about it Why I think that having a single overriding ‘economic’ health measure such as GDP is flawed What’s happening to unemployment, job growth, business, and private expenditure. Here are 7 reasons to be optimistic about the future. Covid vaccines will help in underpinning reopening and recovery Global growth is recovering rapidly — driven by vaccines enabling reopening, monetary and fiscal stimulus, and pent-up demand. Growth in consumer spending is well supported Dwelling investment will provide a strong contribution to growth — the surge in building approvals points to more upside in housing construction this year. Business investment is strengthening - — investment plans for the next financial year are up nearly 15% on plans for a year ago which is consistent with high levels of business confidence, excess corporate cash, and the instant asset write-off tax break. Fiscal stimulus will continue Monetary policy will remain easy However, there are some headwinds. Economic growth should continue this year and then could slow next year as some headwinds are revealed, the effects of the fiscal measures start to fade, and the housing market slows down a little. further coronavirus outbreaks economic ramifications of the international border closure, the potential for further lockdowns due to the slow vaccine rollout, and the geopolitical risks emanating from Australia’s “strained” relationship with China. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get your bundle of eBooks and Reports at: www.PodcastBonus.com.au Ken Raiss – Director of Metropole Wealth Advisory Shownotes plus more here: The Truth Behind Australia’s Economic Recovery with Ken Raiss

What’s ahead for our property markets for the rest of 2021? That’s a common question being asked now that our property markets have been booming for quite some time. And that’s the question I’m going to ask Dr Andrew Wilson, Australia’s leading housing economist in today’s show. You’ll also hear his thoughts on what’s ahead for the rental markets, is inflation on the rebound and should we be locking in on interest rates with the speculation that interest rates are going to rise? Now you probably know that every week I record a Property Insiders video with Dr Wilson where we give you our thoughts and commentary on the property market and our economy, and today’s podcast is the audio of last week video show. You’ll hear Dr Wilson and I explain how our property markets have been bounding along this year. Buyers are still out in force – owner-occupiers, investors, and first home buyers – at a time when available supply is struggling to keep up, keeping pushes prices higher. In fact, a number of capital city property markets are already showing double-digit capital growth this year. Listen in as we discuss: What’s ahead for our property markets for the balance of this year. What happening in our auction markets as they give a good “in time indicator” of what’s happening on the ground. How our rental markets have turned around and vacancies are falling causing rents to rise. Why Dr Wilson doesn’t believe we’ll get sufficiently high inflation to raise interest rates for some time, and… Why some banks are recommending customers lock in their interest rates and why he doesn’t think it’s a good idea. Resources: Guest: Dr. Andrew Wilson, chief economist of My Housing Market Metropole’s Strategic Property Plan – to help both beginning and experienced investors Subscribe to my weekly Property Insider video with Dr Andrew Wilson here- www.PropertyInsiders.info Collect your bundle of eBooks and reports- www.PodcastBonus.com.au Shownotes plus more here: Now what next for our property markets? With Dr. Andrew Wilson 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

Why don’t most property investors succeed, especially since there’s so much information out there and so many people willing to help them? Well, today I’ve got three separate segments that are going to help you understand why many investors don’t succeed, but of course, the intention of that is to even the odds in your favour, to make sure you do succeed. I’m going to share with you probably the worst investment mistake I made, but it turned out to be one of the best investment lessons I made. It was a mistake I made early in my career when I lost 100% of my equity. Boy was it an expensive mistake and a blow to my ego. I guess it shows that I didn’t start off as a successful investor. There are some lessons in that alone. I’m also going to share with you a discussion I had with Joseph my hairdresser who learned how to invest like the pros. Isn’t that something that you’d like to know? Then, in my mindset moment, I’ll help you understand that I’m a real success at failure. So lots about success and failure in today’s show, but the intention of it is to make you a more successful property investor and more successful in all areas of your life. How to Invest Like the Pros I was having my hair cut the other day when Joseph, my barber, said, “Michael — I’m going to get into property investing and I’m going to make a fortune because I’ve learned how to invest like the pros!” When Joseph told me he knows how to invest like the pros, I had to ask — “OK — how are you going to do it?” “Easy,” he said. “I’ve been to a seminar and signed up for a course.” Then he pulled out the advertisement in the magazine that attracted his attention. It promised the ability to control millions of dollars worth of property with none of your own money and bypassing the banks. It also explained how the course presenter had made millions of dollars in seven days. At that point, I felt sorry for Joseph and for the thousands of novice (and some experienced) property investors who will be taken by the new breed of property spruikers who are once again out in force. You can’t become wealthy in seven days. You probably couldn’t even read the course material in seven days. Here is what the real pros know: You can’t create wealth through property overnight, but you can certainly become very rich in the medium to long term by knuckling down and seriously applying yourself in a dedicated, disciplined, persistent way. You get there by following a proven system and by having a safe property and finance strategy. You then implement this by buying the right property, in the right location, at the right price, and holding it for the long term. Not by adding hot water to a packet of magic beans and counting to seven. You can and should accelerate the process by learning the strategies of value-adding through renovations and development, but you can’t skip the fundamental process. While property spruikers went quiet during the real estate downturn, unfortunately, the new property cycle is bringing out a fresh group of “property pretenders”. There are now property “experts” out there selling advice and courses despite never having built their own property portfolios. This makes it timely to remind listeners that seminars promising easy wealth through property have all too often led to financial ruin. It’s just the cycle repeating itself. Of course, this doesn’t mean you should do it on your own. To become a successful investor, you will need to surround yourself with a team of independent and unbiased professionals — a team of people who are known, proven, and trusted. Then go ahead and take advantage of the new property cycle, because the future is bright for those who invest sensibly in property. My worst investment loss One of my early investments was a complete loss. I lost 100% of my invested capital many years ago, way back in the 1970s, and the investment mistakes I made that created this disastrous result. But first I want to explain the 2 main reasons why I’m sharing this story. Losing investments can be great teachers You’ll not only learn from the investment mistakes you make, but you can also learn from other people’s investment errors so that you don’t have to make the same mistakes yourself. Losses are a natural and normal result of making investment decisions Don’t be so hard on yourself when things don’t go as planned because the key to long-term success is what you do when this occurs and the lessons you learn from your mistakes, so you don’t repeat them. So here is the story of my big investment mistake where I lost 100% of my investment capital You see…I already owned a few investment properties at the time, but I was in a hurry to get rich quickly. I was offered the opportunity to invest in a Gold Mine. In fact, one of my friends, Brian, had invested the vast sum of $5,000 (remember it was the 1970’s and that was a lot of money) into a venture that was resurrecting an old disused gold mine in Wedderburn, near Ballarat in Victoria. Of course, my initial reaction was to tell him how silly he was. How he’d lose his money. But Brian asked me to speak with the promoter, explaining that he tells a compelling story. One Sunday morning a man called Terry came to our home and described how with the price of gold rising and using new technology it was now viable to reopen an old disused gold mine near Ballarat where the Gold Rush occurred in the 1800s. He had budgets and profit projections, diagrams, and plans; but things changed completely when he took a shiny nugget of gold out of his pocket and placed it in my hand. He told a compelling story of how I could double my money quickly investing in his company – The Asian Pacific Mining Corporation (what an impressive name!) – and how I’d receive dividends for years. My greed glands began working overtime as I swallowed his story – hook, line, and sinker. The end result was I invested $5,000 of my money and of course, I lost it all. My investment decision was one big mistake from the beginning. Here are a few of the more obvious mistakes I made with this investment: I gave my money to a virtual stranger without doing enough due diligence. I invested in something I didn’t understand. I bought a story rather than investment fundamentals. I was lured by the opportunity of making quick money. I was speculating, not investing, and risked money I couldn’t afford to lose. I had no investment strategy – just a desire to get rich quickly. I learned many lessons from this experience including: Not everything that glitters is gold Sometimes your best investments are the ones you don’t make. Don’t invest in anything you don’t fully understand. I knew nothing about gold mining, so I was speculating rather than investing. I had no competitive advantage and there was no mathematical expectation to my investment strategy. One of the worst things that can happen to an investor is to get it right the first time. I thought I was smarter than I was when in reality my investment success so far was in large part to a rising property market – a boom that made me look smarter than I was. Don’t become overconfident -the market will soon humble you. I didn’t understand the incentives of the so-called “advisor” who really had a vested interest which created biases in the recommendations he gave me. In retrospect… My worst investment mistake was a cheap lesson This investment was the first of many learning fees I’ve paid to the market over the years. I’ve made a lot of mistakes and paid a lot of learning fees during my journey to investment success. It’s much easier for investors nowadays – you don’t need to do it on your own. Resources: 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: I’ve learned to invest like the pros | My biggest investment mistake + more Some of our favorite quotes from the show: “If you are going to listen to somebody’s advice, make sure it is somebody who’s unbiased.” – Michael Yardney “Find a credible source, not somebody with incredible promises.” – Michael Yardney “One of the key factors to my investment success is that I always try to learn from my mistakes.” –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