Property Investment, Success & Money | The Michael Yardney Podcast

Almost 50 years ago I began my study of rich and successful people. Of course, not all rich people are successful. But I remember trying to understand why some people were rich while others kept struggling financially. Over the years I attended many seminars, paid mentors, and read as many books as I could on the topic of success. I modeled successful people and eventually grew successful myself. It wasn’t easy, I’ve had my challenges in life (mostly self-inflicted) and I’ve hit rock-bottom, but I got up again, learned from my mistakes, and moved forward. Over the years, I grew a very substantial property portfolio, built a national business this has won multiple awards as Australia’s leading property consultant and has been involved in over $4 billion worth of property transactions, and currently manages over $2 billion worth of assets for our clients. As you can imagine I have learned a few things about wealth and success along the way. And a byproduct of this is my top-selling book – Rich Habits Poor Habits — that I co-authored with Tom Corley and which has become an international bestseller and translated into a number of foreign languages including. In our book, we explain that being rich has little to do with the money itself. Instead, it has a lot to do with how you think about money. So, if you want to become rich, one of the first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action and to let the action become natural by thinking the way wealthy people think. Unfortunately, we live in a society that teaches us that money equals success. Like many other things, money is a tool. It’s certainly not a bad thing but, ultimately, it’s just another resource. Regrettably, too many people worship it. Now, I didn’t understand this when I began my study of rich and successful people more almost 50 years ago. Over the years I have learned that… Being rich has little to do with the money itself. Instead, it has a lot to do with how you think about money. This means that if you want to become rich, one of your first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action and to let the action become natural by thinking the way wealthy people do and developing what we call Rich Habits. In the last month’s Rich Habits Poor Habits podcast, Tom and I discussed some of the Rich Habits that are common among successful people, and in today’s show, we are going to continue this discussion, so welcome to today’s show. Rich Habits of Successful People If you’ve been reading my blogs or those of Tom Corley, or if you be listening to our monthly Rich Habits Poor Habits podcasts or you’ve read or RHPH book you will know that rich people share similar habits just the way poor people share similar habits. Now before you get too offended… We’re not making a judgment when we say rich people or poor people – they are terms we’re going to use to help clarify the different ways of thinking that 1% of people exhibit from the majority of the population. So, let’s learn more about these habits, Maybe we should clarify what habits really are: Habits represent unconscious behavior, thinking, choices and emotions. A habit is formed when neurons (brain cells) talk to one another repetitively. Habits have a purpose. More Rich Habits of Successful People Rich and successful people align themselves with like-minded people. They understand the importance of being part of a team. They create win-win relationships. The poor believe money will make them happier, while the rich know that money has little to do with happiness, but it does make your life easier and more enjoyable. The rich don’t blame (what’s the point?) They take responsibility for their actions and outcomes (or lack thereof). They know there is no such thing as a rich victim. The poor believe it’s wrong for a small group of people (the 1%) to possess most of the money. The rich welcomes the masses (the 99%) to join them. Successful people are not necessarily more talented than the majority, yet they always find a way to maximize their potential. They get more out of themselves. They use what they have more effectively. The poor believe that in order to gain something, you must sacrifice something else. You must choose between great family life and being poor, or love and being poor, but you can’t have both. The rich know they can have it all if they have an abundant mindset. Successful people are solution-focused, rather than looking for problems or obstacles. Successful people are fearful like everyone else, but they are not controlled or limited by fear. They use it to empower themselves. The rich get up early. They know there’s no shortcut so they work hard until they’ve accumulated a big enough asset base so they don’t have to work hard anymore. The rich ask the right questions – ones that put them in a productive, creative mindset and a positive emotional state. They understand that the better the questions they ask, the better the answers they get, and the better the results they will achieve. The rich have clarity and certainty about what they want (and don’t want) for their life. They actually visualize and plan their future while others are merely spectators of life. While the poor believe rich people are lucky, the rich know luck has nothing to do with their success. While the poor wait for their lotto numbers to come up, the rich don’t expect Lady Luck to pay them a visit; instead, they aggressively pursue their dreams. While the middle class believes the road to riches is through formal education like a college degree or a master’s, you’ll find many of the rich never completed high school. They favor specific knowledge in their industry over formal education. They’ve learned to become more valuable by becoming an expert in their job. The rich are voracious life-long learners. They constantly work at educating themselves, sometimes formally and academically; but more often informally by asking, watching, reading, or listening and also experimentally by doing, trying, failing, and trying again. By the way… I’m not talking about formal education. Of course, it’s worth realising that… We all have some of these Rich Habits and we all exhibit some disempowering Poor Habits. The big differentiator in the see-saw of life is: do you have more of the Rich Habits or more of the disempowering Poor Habits? The good news is that as you’re learning about these concepts in our book the choice is yours.  You can choose whether you will be a have or a have not. 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: Learn These Rich Habits of Successful People | Rich Habits, Poor Habits Podcast, Part 2 with Tom Corley Some of our favourite quotes from the show: “I think one of the comments we’ve both made over the time is that any problem that money can solve isn’t really a problem.” – Michael Yardney “I think we both realise that if you do the hard things early in your life, the rest of your life’s going to be easy.” – Michael Yardney “You can get random good luck. And you can get random bad luck. But the successful people don’t count on that.” – 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.

I recently read an article in the Australian by leading demographer Bernard Salt that made me think. He posed an interesting question. He said, “imagine taking an Australian couple from the 1950s and placing them in our society today. What would surprise them most?” Would it be the internet or mobile phones or our general level of prosperity? Maybe it would be something seemingly unremarkable (to us) such as the ubiquitous use of plastic. Or maybe it would be the idea of wearing outer garments with slogans, brand names and images paraded for all the world to see. Perhaps it would be our accent – it would sound less Australian, or the pronunciation of some words which would have more of an American twang to them, or even some of the words we use. Terms such as 24/7 became popular after the turn of the century, which brought with it the alphanumeric concept of Y2K. Bernard Salt suggested that if this ’50s couple were to wander around the CBD of any big city, he was sure they would be struck by the ethnic mix of the people, the cafes, the independence of women, and the absence of formal dress, with hatless men and gloveless ladies everywhere. I’m sure he’s right. This got me thinking about what will change in how we live moving forward after the coronavirus pandemic. How is your lifestyle going to change? While this is an interesting academic question it is also an important question to ask ourselves as property investors, business people, or entrepreneurs. As we move through 2021, we’re still getting regular reminders that even though life is more normal, the effects of Coronavirus will be with us for a long time. While some people are still looking back in the rear vision mirror to see what lessons we can learn to give us some guidance for the year ahead, let’s look forward into the future as I chat with leading demographer Simon Kuestenmacher Simon is Director of Research at The Demographics Group, a columnist with The Australian, and a regular guest on this who is globally recognized as a rising star in the field of data management and insight and a regular guest here on my podcast. All trends point towards Australians looking inwards, focusing on family matters, embellishing the family home. Retail shifted online during the lockdowns but even after Australia opened up again online retail remained higher than expected before the pandemic. The changes in retail sales by industry sub-group also show how Australians are investing in their family homes.  Major events don’t just change the way we view the world but also change the way we want our homes to look. When Italians and Greeks moved to Australia, we transitioned from building English homes to building Mediterranean homes that allow us to combine indoor and outdoor living. After the millennial drought, we added water tanks to our homes. During the pandemic, we added veggie patches, additional storage (for food and toilet paper?), zoom rooms to the house, and changed the way we use our garages.  Even after droughts, pandemics, and Mediterranean migrant waves are gone the changes introduced to our homes are still there. The current changes suggest larger homes will be in more demand. Customer behaviour also is linked to customer income. The story here is simple. The richer you are the less intensely the pandemic hit you. Tenant selection should be on an investor’s mind. This data further suggests that lower-skilled workers will struggle to afford homeownership and will therefore be renters. Links and Resources: Michael Yardney 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. Join us at Wealth Retreat 2021 – click here to find out more Simon Kuestenmacher - Director of Research at The Demographics Group Shownotes plus more here: These are the big trends post-Coronavirus and they may not be what you expect with Simon Kuestenmacher Some of our favourite quotes from the show: “Even dress code seems to have changed. People are less formal post-COVID.” – Michael Yardney “Sometimes we only look at what it costs to do something, and then when it seems too hard, we just don’t do it.” – Michael Yardney “You’re never going to become rich if your money doesn’t work for you while you’re asleep.” – 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

There are a lot of great things about being an adult, such as setting our own bedtimes and owning the pet of our choice. But perhaps most importantly, with age comes the wisdom and perspective we only wish we had when we were younger. So if you had the opportunity to go back in time, what would you have liked to tell your younger self? That’s what I’m going to discuss today with Mark Creedon and even though we can’t go back in time, we can reflect on the hard-earned knowledge we wish we had known then. And we can even use it to inspire our future selves. What would you say to your younger self if you could? When we are young, we think we know it all. We have our whole lives ahead of us, and the exuberance and energy to go after what we want. But our 20s can also be a time of great insecurity. We are hungry and ambitious but lack the experience to know how to calculate risk properly, follow our gut or learn from our mistakes. Put simply: we don’t have enough runs on the board to make fully formed decisions. But what if you could have a conversation with your bright-eyed, 20-something self? If you could have given he or she some wisdom from the future what would it be? What would you warn them against or encourage them to do more of? Here are some of the things we discuss: Look after yourself Hard work to the exclusion of all else is not the answer. Take Calculated Risks You don’t save money by doing everything yourself. 5. Get a mentor; get a few mentors and be prepared to pay for them 6. Choose your friends carefully Admire rich people 8. Educate and motivate yourself Make investing a priority Don’t compare your life to others, especially on social media. 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 Join us at Wealth Retreat 2021 – find out more here Shownotes plus more here: What’s the best advice you would give your younger self? | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: “I think I was probably too driven, too focused in the first part of my life.” – Michael Yardney “I believe it’s really important to choose your friends carefully, choose your friends wisely.”— Michael Yardney “I don’t particularly like employing people who haven’t had failures in life. It means they haven’t had a go.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We’re at the beginning of a new economic cycle, a new property cycle, and a new business cycle - a time when lifetime wealth will be created by some people, but unfortunately not by most. I was recently asked by somebody in my mentorship program how to make the rest of their life the best of their life – how to make the second half of their life much, much better than the first half of their life. And that’s what I’m going to discuss with you into today’s show. So today we are not going to talk about property or money, we are going to have a much deeper conversation. Of course, property and money are important but only as a means of achieving what do you want to achieve and that’s really what we get to talk about today I’m going to give you some hints on how to take advantage of all the opportunities that are currently in front of us. One of the things I realized early in my investment career is that those who are successful think a particular way and that’s why I spent a lot of time studying the psychology of successful people and that’s one of the topics I’m going to be touching on today – so while a chat today may be a slightly heavier conversation than you used to – I believe it will be very valuable so I look forward to giving you some different insights into wealth creation, but before I do let me ask you a question? How is your peer group going? If you want to change your outcomes, have you considered upgrading your peer group? It's been said that you're level of wealth is likely to be the average of your 5 closest friends. Here are the top three reasons why your peer group matters so much: Your peer group's attitudes, beliefs, and behaviours are contagious. Alone you are vulnerable; connected we are strong. It's a lot more fun to build with other people than in isolation! A little about gratitude I'd like to chat a little bit about something that may initially seem unrelated to money and wealth and I think you probably have come to this podcast to learn about, but in reality, it isn’t. Let's talk for a moment about gratitude. And here's why…Gratitude is a trait you'll find common to all wealthy people. You can have all the money in the world, the biggest property portfolio, the most profitable company, but if you're not grateful for what you have, you'll never be wealthy. We've all seen or heard of people who have lots of money but lead miserable, isolated lives. And we've heard of others with very few of the trappings of wealth yet who lead very fulfilling lives, very wealthy lives, because they are grateful for what they have. So, in my mind it’s critical to be grateful. One way to make this the best year of your life is to be grateful for everything you have and for every day you have. And then tell people how you feel… Send a thank you note, send a text, a Whatsapp or better still do it the old-fashioned way and pick up the phone and show your appreciation to someone every day. One of the most interesting aspects of this idea of active gratitude is that it has a boomerang effect. You'll be surprised how it comes back in many ways to make you wealthy and to help make this your best year ever. But, actually that's not what I was intending to talk about with you today, so lets get back to some other ideas about how we are going to make this your best year ever. Let me make a bold statement… What you feel is true about what is possible for you will dictate what you achieve. What you want to achieve this year must come first and then you'll work out how. That's why you must have goals for your future. I know that once you become successful in business or your property investments it’s sometimes hard to have big goals – you’ve achieved a lot already. Can you pick this one of the things I find common amongst the attendees of the wealth retreat – have achieved a lot of the big goals in unsure what to do next. So my question to you now is…what are your goals for this year? What are your goals for the next five years? What is your financial goal for this year and for the next 5 years? What are your physical and mental goals? What is your goal for your relationships? What are your career goals for this year? You see… in about less than 9 months you are going to arrive at the end of the year again. Are you going to arrive at the place you want to be at? The place you have chosen and have done everything you could to get there. Or are you going to once again say: "I didn't reach my goals." The "what" always comes before the "how." One of the things I've studied is how it is possible to retrain the brain. And I've based this Mentorship program on my findings. I studied to find out if it is possible to take a belief and put it aside if it doesn't serve you. Can one take a belief like "I'm not smart enough", "I'm not good enough" or "I don't deserve to have success" - is it possible to set those neutral network patterns aside and create new patterns in the brain? As you've learned from my blogs and podcasts your outside world is a reflection of your inside world. What you find in the outside world is a reflection of the words you've typed into the search engines of your mind. What are you typing into the search engine of your life? If you type poverty into Google, all you will find are the websites related to poverty. If you type in wealth - you find all the websites related to wealth. It's the same with the way you see the world - it’s the same with the search engine of your mind - because you don't see the world with your eyes.  The world is not what you think you see. What really happens is that your eyes allow light to come in and your brain deciphers what the light is, based on the patterns and images that it already recognizes. Based on the filters your programming has put in place - so firstly you filter lots out. You couldn't cope with all the information we are constantly being bombarded with, and then you interpret what's left with the files you have programmed in your brain. So if you're used to earning 50 or 60 or 70 thousand dollars a year, your software is conditioned to find that in the physical world. The good news is your software can be reprogrammed. Because as soon as you set the vision, your vision for where you want to end up, you are also giving instructions to your brain that that's what you want it to find for you in the physical world. Your brain is like a radio receiver and it can tune into what you want and tune out of what you want. Every time you have a thought your brain releases a chemical that relates to the emotion behind that thought. This chemical is felt by hundreds of billions of cells throughout your body. Now let's take this train of thought a bit further… Everything we want in the universe is right here, right now. I don't know if you know much about quantum physics - a fascinating topic, and something I'd like to touch on right now. Quantum physics suggests that everything we want in the universe is right here, right now. And as soon as we have a thought, as soon as we have the intention for something we don't have right now or something we want, we are actually causing a fluctuation in the nonphysical world - in the waves and particles of the potentiality that exists all around us. Quantum physics teaches us that everyone is a genius, everyone has the ability to create, to achieve whatever their heart desires. Of course, I'm not saying that when you have a vision, when you have a belief, everything will work out great for you. You know it won't! But it's important to have the right vision which will create the right vibration, but then you need to take action because if you don't take action nothing will happen. So why don't most of us achieve our goals? Why don't most of us take action? Let me be more specific. Why don't more of us take the right actions? Well… it's partly because our brain wants to keep us in our comfort zone in what's called homeostasis. Think about this for a moment… If we had a thermostat in this room set to 20 degrees and a cool wind comes in, the thermostat will pick up the cool breeze and send a message to the heater to turn up the heating and get us back in our comfort zone. If the temperature goes up because there's a number of people in the room, the thermostat picks the rise in temperature, and the air-conditioning kicks in and brings the temperature back to our comfort zone. A guided missile system works this way. The automatic pilot in a plane works this way. Guess what? We work the same way. We have a thermostat in our mind and any deviation in our performance - high or low - sets off a chemical in our brain that flows straight into our bloodstream, which causes you to have doubts, fears, and anxiety. Why? Because we like our comfort zone. We don't like being moved out of our comfort zones But the truth is change is happening all the time - you are either growing or you're disintegrating. If you want to take control of your life and make the decision to have your best year ever this year, it means you are going to have to move out of your comfort zone. It means you have to acquire new skills and you are going to have you apply different strategies. The key in business or in life is to understand that results just tell you about the past. So here is the key again... You've got to start out with the future, with those goals, with that vision, and then work backward from there. If you start out in the future with what you want and then build the belief systems underneath this to support the new vision, and you acquire the skills necessary and apply the right strategies then you will achieve predictable transformation and predictable results. Would you like to have predictable results in your life? There is a formula to achieve this. Most people are looking at their current results and saying "OK this year I want to increase these by 10 or 15% because that's what they think they can achieve. But at Wealth Retreat we don't just want to increase your results by 10 to 15%. I want you to take a quantum leap this year. But most people will never achieve this type of transformation because they don't understand that our universe operates by exact precision. It follows precise laws and there are no accidents. From the way your digestive system works to the orbits of the planets - it happens by exact precision and following precise laws. So for this to be your best year ever you're going to have to let go of being a victim and forget the past by altering your thinking You're going to have to create your circumstances by altering your behaviour. Create your circumstances by changing how you feel about yourself. You are going to have to upgrade your internal software - you'll have to turn up your thermostat. Now our gift is the ability to think differently if you want your life to change. That's what gives you and I dominion over the animals, the plants, and the minerals. It's our ability to choose our destiny. Our ability to choose our thoughts. And yes we have conscious thoughts and unconscious thoughts. And we have positive thoughts and negative thoughts. We have supportive thoughts and non-supportive. If we can have more positive thoughts and squelch those automatic negative thoughts, then you're going to be more of a positive vibration than a negative vibration which will allow you to attract everything you need to create your best year ever. The secret to having the best year ever and maybe it is not so much of a secret is to start with the vision of where you want to end up. Then you have to change your beliefs about yourself, about what's possible. When you think negative thoughts when you focus on what you don't want you will recreate more of it. Is that much of a secret? That when you think positive thoughts and you send positive good into the world and you do positive things to the world that it will come back to you? Is it possible that when you step up and step out of your comfort zone right now you can change your life? You see… I can't change your life. You can change your life. But you can't do it doing the same things you've been doing to get where you are. If what you want is different to your current results, I urge you to step out of your comfort zone, do what it takes so that when you finish this journey on this little blue planet you will go wow that was phenomenal. You owe it to yourself; you owe it to your family. You owe it to them to make this the best year ever. Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here  Shownotes plus more here: The right and wrong things to do to make the second half of your financial life better than the first half Some of our favorite quotes from the show: “I'm sorry to say that now that life is really good, being grateful is not an art I'm anywhere near a master of anymore.” – Michael Yardney “The "what" comes first and then the "how."” – Michael Yardney “There is nothing more powerful than thoughts. It's how everything starts.” – 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

I took some time last weekend to look at some articles and commentary that came out about a year ago when the GVC (Great Virus Crisis) was just beginning. The media was full of negative commentary but in my regular podcasts my guests and I gave a much more measured commentary using our perspective gained from many years in the market, and as a result we were circled by a pack of “hangry” housing bears. They were all confidently growling that local house prices would slump by the largest margin on record. Of course, they were fuelled at that time by some crazy forecast from the banks and the perennial negative Perma Bears who were praying for the mother of all housing depressions.  Now the media is full of positive news and most of the bears have gone back hibernating in their caves, but some are still out there telling us the upturn in our property markets is just temporary. We have an embarrassment of riches, with our economy and our property markets surging ahead. 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. No fiscal cliff at the end of March Remember how the property pessimists were worried that we would fall off the cliff due to the many deferred home loans? Many banks gave temporary relief to borrowers impacted by COVID-19, allowing them to defer payments for a period of time. However, APRA reports that as of 28 February, a total of $14 billion worth of loans are on temporary repayment deferrals, which is around 0.5 percent of total loans outstanding, down from $37 billion (1.4 percent of total loans outstanding) in January. Sure, lots of homeowners and property investors took advantage of the mortgage safety net, but they didn't need to use it and are now repaying their debts. We're not falling off of a fiscal cliff and our banking system is sound and stable – so it's a pity the Negative Nellys created so much stress amongst those who listened to them last year. Property prices and GST boost state budgets by $7billion The fastest house price growth in 32 years nationally has fuelled stronger than expected stamp duty revenues while also adding a feeling of wealth for existing homeowners. We know when we feel wealthy and secure, we will tend to spend more. This all good news to help continue boosting the post-COVID-19 economy. And this has a flow-on effect on government budgets. We know our governments have taken on more debt to help us get through the coronavirus crisis, but now it seems that State government budgets are a collective $7 billion better than expected as rapidly recovering housing markets and consumer spending lift goods and services tax and stamp duty collections run ahead of forecasts. Federal estimates of GST collections are already $5.9 billion ahead of where they were forecast to be just three months ago, while stamp duty estimates have improved in every state by more than a combined $1.5 billion compared to past figures. The latest home loan figures show that investors are back in the market The latest ABS figures show the value of new loan commitments for housing fell by 0.4 percent from a record-high $28.75 billion in January to $28.64 billion.   On the other hand, investors are back in the market with lending to investors rising by 4.5 percent in February to 3-year highs of $6.94 billion, while lending to owner-occupiers fell by 1.8 percent to $21.70 billion.  For owner-occupiers, the value of loans for construction rose 4.4 percent in February to a record-high $4.25 billion. Renovation loans rose 8.3 percent to 11-year highs of $322.4 million. Building approvals surging ​February saw another big upside surprise for dwelling approvals which leapt 21.6% in the month to be up 20.1%yr. ​The record house building approvals were driven by the government’s HomeBuilder program which has now have sparked shortages of key tradespeople and helped push the price of materials up by as much as 50 percent. ​Rampant demand in the renovation and home building sector is hitting customers with significant delays and pushing up the price of materials. And disruptions to international supply chains are only making matters worse. ​​With dwelling approvals for houses at record highs, it’s likely we will see additional pressure growing on construction costs as demand continues to build for residential construction materials and resources. The lift in residential construction costs is also placing upwards pressure on inflation where housing costs receive the heaviest weighting within the CPI ‘basket’ of goods. Although HomeBuilder has now been phased out at the end of March 2021, it’s highly likely we will see a continuation in this trend towards higher residential construction costs as it will take some time for builders to work through the surging pipeline of house approvals. Job vacancies Despite the concerns of double-digit unemployment, 90% of the jobs lost over Covid have been recovered. In seasonally adjusted terms, job vacancies rose by 13.7 percent or 34,800 to a record 288,700 available positions in the three months to February.  Vacancies are up 26.8 percent or 61,000 available positions in February compared with a year ago. Of course, JobKeeper has now ended and while there is some concern that more people become unemployed, the residential property boom if you’re in strong demand for construction workers. ANZ Bank Forecasts A new report released from ANZ Bank predicts house prices at the national level will rise to a strong 17% through 2021, before slowing to 6% in 2022. What a turnaround from all the pessimistic forecasts all the banks made in the middle of last year. ANZ senior economist Felicity Emmett said she expected the Australian Prudential Regulation Authority (APRA) would then introduce macroprudential measures to slow house price growth into 2022. Also… it is unlikely that APRA will intervene with macroprudential controls any time soon, in light of APRA chairman Wayne Byres’ comment this week when he reminded Parliament that its primary responsibility is financial stability, not soaring house prices, and it is not seeing activity right now that would compel it to intervene. Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here Pete Wargent – Next Level Wealth Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: The Big Picture Economic and Property Trends You Must Understand, with Pete Wargent Some of our favorite quotes from the show: “March has come and gone, and there was no fiscal cliff.” – Michael Yardney “I believe that good debt, debt against appreciating assets, is really an asset.” – Michael Yardney “Once you realize that no amount of money is going to make you happy unless you shift your mindset into gratitude and abundance mode, you’ll never be happy.” – 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

Why are you investing in property? Or why do you want to get involved in property investment? It’s not really for the properties, is it? For some people, it’s because they want to fund their retirement, while for others it’s that they want more choices in life – they don’t particularly want to retire, but they want to work when and how they want to work and because they want to go to work, not because they have to. However, the inconvenient truth is that despite over 2.1 million Australians investing in property, 92% of them never get past one or two properties in the portfolio, meaning they won’t be able to fund their retirement. So, is it really possible to live off your property portfolio in the current economic climate and in our more challenging finance environment? The answer is… the rules of finance have changed considerably and how one funds the longest holiday you’re ever going to have – your retirement – is very different from how you would have structured it many years ago. And that’s what we discuss today in my chat with financial advisor Stuart Wemyss. At the end of today’s podcast, you’ll have more clarity on how to successfully live off your property portfolio. And I’m sure you won’t be surprised if I tell you it’s not what most people would recommend. Funding your retirement from property investment More and more Australians are looking at property investment as a form of taking control of their financial futures. Yet some people seem to be questioning the ability to really fund a reasonable retirement through property investment. So, today I’m going to have a chat with Stuart Wemyss, to get an understanding of how to fund the longest holiday you’ll ever have – your retirement. Many years ago, I was introduced to the concept of living off the increasing equity of your properties, but that really isn’t possible in the current lending environment. In fact, it’s changed since the global financial crisis. So you’ll have to build an investment portfolio that will allow for a great retirements Stuart and I discuss The importance of building an asset base. How does one structure a portfolio? So many unknowns for the future Must account for taxes What about interest rates – will they remain low it is best to acquire a combination of investment assets i.e. some property, some shares (hopefully in super), and some cash by the time you reach retirement. It is not necessary to acquire these assets equally each year. People who insist on “property, property, property” or “shares, shares, shares” are probably biased. It’s OK to take a level of debt into retirement if you can comfortably service it. Borrowing to invest is typically a good wealth accumulation strategy as long as you do it prudently and adopt a proven methodology to select quality investments. If used wisely, debt can be a very effective tool. However, whilst your investment strategy will require you to get into debt, the strategy must also articulate how you will get out of debt (i.e. repay it). Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here  Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: How do you fund your retirement using a property portfolio in today’s financial environment, with Stuart Wemyss Some of our favourite quotes from the show: “We don’t know what the rules are going to be when you retire in the future.” – Michael Yardney “To get the results most of us are looking for, you need a plan. You need a strategic financial plan.” – Michael Yardney “Your wealth operating system is what connects your inner self, your thoughts and your feelings, with the outer world.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to take advantage of our property markets and become financially independent, today’s show is for you, because I’ve got 3 segments during which I share a number of concepts that will help you along the way. First, we discuss whether property investing is an art or a science. Spoiler alert: it’s both. But you still need to listen to the balance of the show because I’m going to explain how and why they interact. I’m also going to discuss the concept of becoming a borderless investor – investing in another state. I know a lot of people find this difficult. I see this particularly among intelligent and analytical people because they want more control. But bear with me as I explain some of the benefits and why you should at least consider becoming a borderless investor. Then in my mindset moment, I’m going to share a lesson that’s made a difference to how I structure my life and I’m going to talk about the big rocks in the jar of your life. Is successful property investing an art or a science? So, Let's look at the three types of property investor. The passive investor A passive investor tends to spend little time doing any due diligence and is keen to buy one of the first properties they come across.  They aren’t really interested in understanding all of the ins and outs that go along with creating a property portfolio such as finance, tax laws, compounding and so forth. Instead, a passive investor tends to let their emotions get involved in their investment decisions, which we know can lead to disastrous results. The active investor An active investor puts in some degree of work in order to find a good investment prospect, including conducting some due diligence in the hope they can increase the likelihood of making a good and viable investment purchase. They generally look to gain a basic understanding of the principles involved in property, finance and taxation and would look to seek professional advice for help with structuring a portfolio. The analytical investor An analytical investor is the far extreme of a passive investor. Instead of undertaking little research and due diligence, this type of investor tends to go overboard and spend months, or even years, examining data, seeking advice and reading material in order to look for the ‘ultimate’ investment property. While it may seem that an analytical investor is more likely to make successful investment decisions, it’s actually not the case. The problem with property data There’s no doubt that it’s important to understand the property fundamentals and research appropriate and reliable property data, and the more extensive the data research is and the longer it goes back, the more accurate it is in forecasting future trends. But the problem is, data is often wrong. Unfortunately, the most commonly-reported data - median price data - is actually very unreliable. There are three reasons: Because median prices fluctuate depending on the way the property is sold. In many suburban areas, where property sold a number of years ago and vacant land has now been replaced by new homes, this data is irrelevant. Similarly, new apartment or townhouse developments can skew median house prices of other local properties. Gentrification and renovation changes the nature or quality of properties which again, results in the median house price for the area being incorrect. Using median price data is risky for investment purchases and can cause costly investment mistakes. Just because median prices go up in the area doesn’t mean that value of any local property also increases. So is property investing an ‘art’ or a ‘science’? Both. It’s true, successful property investors need research and data to aid an investment decision, but it’s not enough on its own. Investors also need to compliment any applicable data with local area knowledge and expertise, plus experience and perspective in order to make the best-informed choices. Someone looking at data can make it say almost anything they want; the trick is knowing how to take that information and use it in conjunction with some practical experience in order to accurately make an investment decision. In other words, data and research is a critical step in getting ready to invest, but it is only one of the many important steps. What’s the key lesson here? Property investment is an expensive game, and you can’t afford to get it wrong. Engaging with experts with many years of experience can help you avoid making the costly mistakes made by so many naïve investors. Remember, property investment data is crucial when making an investment decision, but it’s only half of the work. Should you become a borderless investor? You know…invest in another state? The short answer? Yes, absolutely! The long answer? There’s so much you need to consider when investing in property, and the location and your proximity to the property is just one of them. Investing interstate is not without its risks. But to be a successful property investor who creates sustainable, lasting wealth from your property portfolio, it’s my belief that you need to adopt a diversification strategy. This is because (and I may sound like a broken record here to people who have read my articles or seen me speak on this topic before), there is not one “single” property market in Australia. Our country is made up of many real estate markets, which don’t always move in sync – they each have their own cycle. Just look at the significant variance of the different property markets in 2020 for evidence of that. Values have been falling in one market and rising in another, a dynamic that sometimes plays out at a suburb level. By that I mean, one suburb can be experiencing growth, while a nearby suburb may not. Investing in a city other than your own can be a wise way to spread your risk across multiple markets, and take advantage of growth cycles that may be stronger than your local area. Think about it: if you limit your investment options to your own backyard, are you really setting yourself up for financial success? Furthermore, searching for properties in your local area is not really “researching”. Rather, it’s searching for facts to support your ready-made preconceived opinion that the area is a good place to live or invest. And here’s the truth about property investing... Diversification of location is key. This is very different to having a philosophy of diversification of investments, which is a whole other ballgame (on which I have very strong opinions!) It’s those investors who have diversified property portfolios who will find they benefit, as different capital cities each have their own day in the sun – as their cycles peak at different times. There are also land tax issues to take into consideration. If you acquire a number of property assets within one state, you could end up paying a whopping land tax bill every year. By spreading your risk and buying properties in various locations, you may minimise the amount of land tax you’re required to pay. This is not a reason to diversify, it’s just one of the possible benefits. Now don’t get me wrong… I’m not suggesting investing in other states just for the sake of it. What I’m recommending is that as investors build their property portfolios, they should add investment grade properties in the 3 big capital cities in Australia to their assets. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Is Property Investing an Art or Science? Becoming a Borderless Investor + More Some of our favourite quotes from the show: “Instead of undertaking appropriate due diligence by closely looking at property data, many investors are making emotional purchases and it's causing poor decision making.” – Michael Yardney “Failing to combine the science and the art of property investment could end up costing you a fortune.” – Michael Yardney “By spreading your risk and buying properties in various locations, you might minimize the amount of land tax you’re required to pay.” – 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

With the property markets surging around Australia, people are starting to ask is this more than a just a property boom? Are we about to enter a property bubble? That’s what I’m going to discuss today with property researcher John Lindeman, and we’ll explain the difference between a boom in the bubble in what we believe is ahead for a property market so you have more clarity in making investment decisions But before I have that chat with John, I will explain to you what it takes to be in the top 1% of wealthy Australians. And what it takes to be in the top 1% wealthy people in the world. And the figures I’m going to share with you may surprise you, in fact, if you’re listening to this, you’re likely to be amongst the top 1% of wealthy people in the world. But I’m then going to share with you what you can do to work your way up the ranks. And I will also have my regular mindset message for you at the end of the show. Who is in the Top 1%? Today, I’d like to have a bit of a chat about what it takes to be in the top 1% of wealthy people. We know that true wealth is more than how much money you have or how many properties you own. But you don’t have to look far to see the references to the top 1% of money earners and how disproportionate the distribution is in Australia and around the world. The coronavirus also helped expose the deep divide between the rich and the poor. But you may be surprised to find that the 1% doesn’t just include the superrich. It may include you or someone you know. How rich do you think you need to be to make it into the 1% club? It’s very likely if you’re listening to this podcast you’re already in the one percent. According to last year’s Global Wealth Report, an individual net worth of Australian one million two hundred ninety-five thousand dollars, a combined income of investments and personal assets, will make you amongst the world’s richest people. In other words, you need about 1.3 million to be in the world’s 1%. As it turns out, there are discrepancies even among the 1%. But when you look at the Bureau of Statistics, the average Australian has a net worth of just over a million dollars, and the Australian top 20% have a net worth of 3.2 million dollars. So, a net worth of just 147,000 Australian dollars puts you in the top 10%. To be in the top 1%, you only need 1.3 million And Australian wealth is heavily skewed to property ownership. Just owning their own home can make many Australians more money than their day-to-day work. That’s why I discuss how to become successful in property. I want you to be in that 1%. But what’s the solution to wealth inequality? Focus less on taking action that could inhibit the top earners and more on what’s stopping others from being successful and what’s holding back the bottom 50%. If we’re in a property boom, when will the bubble burst? We are in a new property cycle, but rather than starting off slowly as they have in previous cycles, almost every property market around Australia is exhibiting strong capital growth. This time around is very different from other cycles I’ve experienced where capital growth starts slowly and different segments of the market in different states behave differently. Currently almost every market, in capital cities and regional Australia at the high-end price segments of the market and it’s the first homeowner level are moving upwards in price. The one segment which is languishing is the CBD high-rise apartment. Some commentators are claiming that our property markets are heading for a boom – I’d say they’re a bit late to call you at that – we are in boom conditions. But others are warning that we could soon be in a price bubble that is about to bust. So, what’s the difference between property booms and price bubbles, which are we in, and what’s ahead. That’s the question I would like to ask leading property researcher John Lindemann of Property Power Partners – John is one of the popular regular guests on this podcast and a regular blogger on property update and Your Investment Property Magazine So, let’s start with some basics – what’s the difference between and property boom and bubble? Bubbles invariably bust and when they do, housing prices end up much lower than where they started. Property booms, on the other hand eventually run out of steam with an occasional small price correction followed by a prolonged period of little to no growth. While bubbles do not happen in the general Australian property markets which are underpinned by a large proportion of owner occupiers, in the past we have seen property bubbles in certain speculative sectors of the property market such as mining towns or off the plan poor quality high-rise apartment towers in our capital city CBDs. The issue is that they both look the same at the start. It’s the type of buyers causing the growth. Buying demand from investors grows when prices rise and the more that they increase, the more that investors want to buy properties. Owner-occupier booms take place despite price growth and the more that prices rise, the more that demand slows down and then stops as prices become unaffordable. Only investor led booms can become bubbles. Investor-led booms can become bubbles because investors don’t buy properties to live in, like owner-occupiers do. Profit is their only consideration, and fear of loss their only concern. This means that when price growth slows down or stops, investors start to put their properties on the market and try to sell. When the number of properties for sale exceeds buyer demand, prices start to fall. Panic starts to set in as more and more investors try to sell and because no one wants to buy, the bubble busts. Owner-occupier booms merely slow down and when they end prices don’t crash, because the purchased properties are now people’s homes. When buyer demand comes to an end, there’s no motivation to sell. Only those homeowners who really need to move for personal, family or business reasons will do so. Property booms can occur anytime and anywhere that the demand for housing outpaces the supply, but only investor led booms can turn into bubbles. So what type of property boom are we in right now? There’s a simple benchmark that tells us the type of boom taking place right now, and therefore what is likely to occur when the boom has ended. The benchmark is called tenure, a technical term that refers to the conditions by which homes are held or occupied. Just over one quarter of homes in Australia are rented from private investors, so if the percentage of homes being bought by investors is lower than this, then owner-occupiers are driving buyer demand, but if the percentage climbs higher, then we are heading for an investor led boom and a possible bubble that could bust. Investors buying have been lower than the 26% benchmark since 2019, and also the percentage of investors buying homes is declining. Investor Approvals Investor interest in residential property has waned in recent years because rental demand is falling and the yield from rent is too low. Investor interest has turned instead to high yielding investments such as shares, commodities and even commercial property. Owner-occupiers are not deterred by low rental yields, because they buy properties to live in, not to rent out. The current mix of low interest rates, easy finance, reduced repayment buffers plus government incentives and waivers is causing the current surge in owner-occupier demand and when the new affordability ceilings are reached, growth will slow down and then end, but it won’t bust like a bubble. This is a period with many Australians that are upgrading their accommodation. Tenants who are unhappy with their accommodation are upgrading to better tenancies. Other tenants who’ve got a bit of money behind them and can take advantage of the government grants and incentives are upgrading and becoming first homebuyers. Established homebuyers can see property prices surging and many are looking to upgrade their homes to bigger or better accommodation in better locations. Other homeowners are upgrading to lifestyle locations and Some baby boomers are upgrading their lifestyle by downgrading their homes to larger apartments or townhouses in desirable neighbourhoods. While there’s no doubt some people are moving to regional locations close to the CBD, you just have to go to the open for inspection in Sydney, Melbourne, Brisbane, or any capital city for that matter or attend any auction and you’ll see that the bulk of the buyers still want to live in the big city. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join us at Wealth Retreat 2021 – click here to find out more John Lindeman – Lindeman Reports Shownotes plus more here: How to be part of the rich 1% | Are we in a property boom or bubble? With John Lindeman Some of our favorite quotes from the show: “Even though our system has lots of faults, it has actually created more prosperity, even for the lowest one percent, than most of the world can comprehend.” – Michael Yardney “It’s the investors that create the swings.” – Michael Yardney “The more you invest in yourself, the more opportunities you create.” – 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

Who do you ask for property advice? With so many mixed messages and so many people out there with property advice, who can you trust? Today I’m going to teach you the ten-meter rule, and suggest you never break the ten-meter rule when getting property advice. The rule will also stand you in good stead in other situations where people are willing to offer you advice. Then I’m going to have a long chat with you about the reticular activating system. At the end of today’s show, you’ll have some new ideas and tools that will help you take advantage of our property markets. Introducing the 10 Meter Rule Now that the conversation has moved away from COVID-19, it seems everybody I bump into has an opinion on our property markets. They’re reading all the news and while some believe property markets are going to perform strongly there are still many who believe we are in a bubble or a Ponzi scheme that’s about to collapse. Some are keen on buying off the plan, others are looking at houses and land packages and yet others think it’s better to rent and buy. I saw something similar when I was having a chat with the young lady who came up to me a few weeks ago when I was sitting in Church Street Brighton having a coffee. She obviously recognized me from my blogs or my photos on the Internet and wanted to ask me some questions about real estate, so I gave her a few minutes of my time. The conversation started with what I thought was going to happen to our property markets, but then when I asked her what her plans were, she explains to me how she recently paid a lot of money for a course to learn how to be a buyers’ agent and was going to help homebuyers and investors. She was going to make that her career. I know the course she is talking about because it has produced a whole swag of new buyers’ agents, so I asked her a little bit about her background. She had brought one investment property a couple of years ago in a suburb of Melbourne, which hasn’t performed very well, and up until last year, she was a teacher. But now with her newfound knowledge and enthusiasm, she was going to charge others to buy real estate for them. As I listened to her story it reminded me of a blog that I read probably over a decade ago by Canadian property commentator Don Campbell where he explained how a comedian made a significant difference to his property investing. Now investing in real estate is no joke, but a comedian taught him the final 30-foot rule, which I have changed to the final 10-meter rule, and understanding this will make a difference for you. Okay, in a nutshell, it comes from the comedian, old-school comedian, Buddy Hackett. My understanding of The Final 30 Feet (or the Final 10 Metres as I’m now calling it) came from a warning given by Buddy Hackett to a young and upcoming comedian on how to deal with the mountains of advice that TV executives, promoters, friends, and family will give him as he built his comedy career.  Buddy’s advice was simple yet profound: “Listen politely, smile and allow them to feel helpful… then turn around and seek out and take advice only from those who have walked The Final 30 Feet.” The obvious follow-up question was: “What do you mean the Final 30 Feet?” Apparently, Buddy said: “Only take advice from those who have walked the final and most important 30 feet from backstage to being alone in front of a microphone with nowhere to hide. Then, and only then, will you know the advice comes from reality and not theory. They’ll understand the emotions, the work it takes to get it right. They’ll have made the mistakes and created the laughs, not just read about how to do it.” This sage advice is obviously very relevant about whom you should listen to with regards to property and wealth advice. In essence, there are a lot of enthusiastic amateurs out there who despite their best intentions, and even if they’re confident with their thoughts are correct, will steer you in the wrong direction. And that’s not necessarily because they mean to you or intend to, but because they don’t have the experience or perspective to give the right advice. So, my advice to you is to be very careful to choose advisors who have the final 10 meters of experience in whatever field you are asking assistance with; be it property investment, business, relationships; because there are just too many inexperienced pretenders out there. By the way… this doesn’t surprise me.  I have seen this happen at the beginning of every new property cycle, a flood of new so-called experts trying to make a living giving advice. And while a rising market may cover up some of their shortcomings, I keep coming back to Warren Buffett’s saying – “A rising tide will lift all ships, but when the tide goes out, you’ll see who swimming naked.” In the past, I’ve written about the fact that successful property investing is part science and part art. There’s no doubt that science, theory,  data, and research, are very important. But they tend to be useless unless you have the art part mastered as well – the perspective and that comes from years of experience and from the lessons of failure. Perspective is something that you can’t buy – but it’s something you can hire when you get the right team of experts on your side. Despite my success in investing and business I still have mentors and pay for business coaches. And the concept of The Final 10 Meters has served me well. I seek out who people have already achieved what I want to achieve, have solved the problems I need to solve, and have made the mistakes I want to minimize. Your Reticular Activating System (RAS) The RAS plays into the psychology of success. The RAS is a filter that sorts through the input into your brain and decides what you’re going to see and what you’ll ignore. Your RAS responds to your name, anything that threatens your survival, and anything you need to know. It also seeks data to validate your beliefs. You program your own RAS filters with your parameters, along with your own past experiences. If you learn how to control and reprogram your RAS, you can get the results – and the success – that you want. Your RAS works like a search engine, looking for what you’ve programmed it to look for. So if you create a clear picture of what you want, your RAS will know what to look for. But your RAS also aligns with your own preconceived belief system, so it will pay more attention to things that fit with what you already believe. If you believe you will find opportunity and success, your RAS will help you see them. But if you believe you’ll find debt and risk, your RAS will filter for those and you’ll see more of them instead. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Never Break The Final 10 Meter Rule When Investing In Real Estate Some of our favorite quotes from the show: “You see, theory is not real life.” –Michael Yardney “Be careful who you take advice from and use the final 10-meter rule to sort out who you take seriously.” –Michael Yardney “You are what you believe yourself to be.” –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

One of the most significant changes in the time I’ve been investing in property, and that’s close to five decades now, is the availability of data. When I first started investing in the 1970s there weren’t any blogs, podcasts, YouTube channels and the only way to get property data was to be part of the secret inner circle – which was then a men’s club of Real Estate agents – because the lag in publicly available data was often over a year. The estate agents were custodians of the data, because back then the Valuer-General would only publicly release property once a year. Over the last decade, there’s been an abundance of monthly data available to property investors and over the last year, most of the data houses have been providing weekly updates. But in our current fast-moving market sometimes even this is a little bit too slow. For property investors who need to make important financial decisions, the lagging available data can be an issue and the other significant challenge is understanding which data is important and which isn’t and that’s the topic of my chat today with financial adviser Stuart Wemyss. At the end of the show, you should have a much better understanding of what data you should be paying attention to and where to find it, and this should help better property investment decisions. Filtering Property Data It seems that currently every man, woman, and pet dog is upbeat about our property markets. Just look at the messages we are getting in the media. It seems that all the economists have now done an about-face and agree we’re in for strong property markets for the next few years, with some being comfortable using the word house price boom. In fact, they seem to be out doing each other to see who can come up with the most upbeat price increase forecasts. Six percent gains? How about eight percent? No, it will be double-digit growth. What about sixteen percent over the next two years! But looking back over the last few years, we know that most economists have had a very poor track record, and we know much of the information we read is not useful. So, today in my chat with Stuart Wemyss, we get an understanding of what information is relevant and what is not. The media tend to only run stories that they consider newsworthy. Newsworthy often means that the information is time-sensitive e.g. what happened yesterday or what will happen tomorrow. This short-term information does not help if you intend to own a property for many decades. So what information is relevant? Very little from the media. A good and bad property costs the same to hold. You will pay the same amount of interest with respect to the mortgages. And the income and expenses will be relatively similar. The biggest difference between a good and bad property is capital growth. That is, what will the property be worth in 10, 20, or 30 years? In this regard, when selecting a property, there are three fundamentals you must consider: Land value Scarcity Past performance There’s only a handful of important macros considerations Population growth Money supply Diversified employment opportunities Infrastructure Ignore the rest! Property investment is part art and part science, and that’s where investors who only base their decisions on data get it so wrong. I know there are a number of people out there currently saying that they research every market around Australia sitting at the computers all day. Unfortunately, what they are missing is the perspective – they have the same speed right but not the bit right – not the on the ground knowledge - you can’t get it by flying in & flying out and speaking to a few agents – perspective takes years to develop – it’s something you can’t buy. Some examples of when the data can lie to you Not enough data Not long enough time between transactions Too hard to ascertain its current value Our sales did not represent Fair market value You overpaid for the property when you purchased it Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: What property data should I be paying attention to and what should I ignore? with Stuart Wemyss Some of our favourite quotes from the show: “I think we’ve got to remember that the media’s job is not to educate you but to entertain you.” –Michael Yardney “Part of an investor’s job is to maximize their returns while minimizing their risk.” – Michael Yardney “The few who do succeed are able to do so when the pain that does come to them – they can endure it because they prepared for it.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how