Property Investment, Success & Money | The Michael Yardney Podcast

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

Just like 2020 was the year of surprises many of us didn’t foresee, I believe 2021 will offer its own surprises – but this time, on the upside. There is a perfect storm of economic outcomes and that’s what I’m going to be chatting about with Pete Wargent in today’s show as we have a look at the macroeconomic big picture that will affect our property markets, our economy, and our lives in general in the coming year. It’s really only been a year since Coronavirus started to affect us. Just look where we were in the middle of last year and it’s hard to believe where we are now. We’ve had spectacular success in containing the Coronavirus. The Morrison Government build the bridge he promised to get us across the other side and federal government and state government spending killed the recession, which was the deepest since the Great Depression. We now have record low-interest rates. A sooner-than-expected arrival of vaccines. And all the above has pumped up economic growth above expectations and helped the property markets and the stock market rebound, bringing both business and consumer confidence. We have an embarrassment of riches, with our economy surging ahead, so I hope my chat with Pete Wargent will give you some more clarity about what the future holds so you can make better investment and business decisions. Economic and property trends for 2021 with Pete Wargent Our property markets don’t operate in isolation, so I believe it’s good to regularly have a look at the big picture, the macroeconomic factors affecting not just Australia’s economy, but the world economy. Australia’s V-shaped economic recovery. Australia’s economy has surprised on the upside. While technically we had a recession last year – two consecutive quarters of negative GDP growth, really the March quarter had very minor falls in GDP – there was really only one quarter, the June quarter, with a significant drop in economic activity. And boy has the economy rebounded since. Our economy is likely to keep performing well moving forward While the recovery to date has unfolded much more quickly than expected, it is important to remember that: it has been uneven and that despite recovering to pre-COVID levels by mid-2021, there remains a high degree of spare capacity in the economy. There is still some way to go and there are still risks ahead. $120 billion savings war chest is firing our economic recovery Saving is about to become unfashionable again. After rushing to build deposits during the COVID crisis, it seems we are now determined to burn through accumulated cash. What’s more, the trend is going to accelerate. New forecasts suggest that by the end of this year we will be saving less than half what we are putting away just now, and that level will be around a quarter of what we were saving at the peak of the crisis. As panic swept the broader economy last year, the national savings rate soared to unprecedented levels, hitting 22 percent — or 22c for every dollar — at its peak. To put that number in historical perspective, it meant we saved $187bn in 2020, which works out at more than the total savings over the past 3½ years. More recently the savings rate figure has started to drop, though it is still sitting somewhere near 12 percent. The Commonwealth Bank ­estimates that households have put aside $120bn more than what is normally saved in the June, September, and December quarters last year — equivalent to 6 percent of gross domestic product as overseas travel and social activities were curtailed. The bank’s analysts believe this money will be spent over the next few years, providing continued economic momentum as a good chunk of this money will find its way into consumer spending. And some of it will go to paying down debt and some will go into buying assets. We’re already seeing this in retail spending and in our property markets. RBA and interest rates There has been a lot of chatter amongst media commentators that our booming property markets will force the RBA to intervene earlier than planned and raise interest rates. But in his recent statement, RBA Governor Philip Lowe once again put these predictions to rest explaining that the surging housing market will not cause the RBA to raise interest rates. He said it would not make any sense to do so. I know the media loves headlines about rising interest rates, but Philip Lowe once again reminded us that his aim is to bring inflation sustainably within a range of 2 to 3%, and to do this we need higher rates of wages growth and in his words: “The evidence strongly suggests that this will not occur quickly and that it will require a tight labour market to be sustained for some time.” The Reserve Bank Governor emphasised this point, noting that the road to “normality” was long. Governor Lowe said that wage growth was a long way from 3 percent. And indeed inflation was a long way from sustainably being back in the 2-3 percent target band. Rising bond yields: The Governor sought to emphasise that he believes that rising bond yields are sending false signals on the inflation risk and the potential for a lift in the cash rate: “market pricing has implied an expectation of possible increases in the cash rate as early as late next year and then again in 2023. This is not an expectation that we share.” What else could our regulators do to subdue our property markets? I understand why our regulators intervene in our finance and housing market, even though I don’t always like how they do this – we saw what happened with APRA overshot the mark a few years ago, but Philip Lowe said “I recognise that low interest rates are one of the factors contributing to higher housing prices and that high and rising housing prices raise concerns for many people. “There are various tools, other than higher interest rates, to address these concerns, leaving monetary policy to maintain its strong focus on the recovery in the economy, jobs, and wages.” Big Australia vital to protect the home front: Rudd Prior to the pandemic, Australia’s population was growing faster than most other developed countries, and of course, this has now been temporarily put on hold. With unemployment still high some people are wondering whether we should open our borders quickly, or whether we should restrict immigration until all Aussies find a job. Recently former prime minister Kevin Rudd came out explaining how a Big Australia is needed on national security grounds to provide the tax and population base to increase the size of a military amid the challenges posed by China’s rise. Global economic outlook The rapid development of vaccines and their rollout has improved the global outlook and lessened some of the downside risks. The plan for further fiscal stimulus in the United States has also improved growth prospects there. 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 – What’s ahead for our economy and property, with Pete Wargent Some of our favourite quotes from the show: “There’s been a significant war chest of savings that now people are starting to spend.” – Michael Yardney “I think we’ve got to acknowledge that while we’re saying Australia’s booming and the economy’s doing well and the property market’s doing well, there are still some people who are not doing well.” – Michael Yardney “The media knows this. They know we react more to negative news than positive news. So they force-feed us negative news just to get the clicks.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

As we move into a new property cycle, a whole new generation of people are going to become financially independent through property. So, today’s show is going to be dedicated to helping you become one of those. I’ve got two segments for you today. The first segment is a chat with Brett Warrant about 10 questions you should ask yourself when you’re going to buy an investment property – whether you’re a beginner or an experienced investor. Then, in my next segment, I’m going to share five things that you can do today to become more successful tomorrow. 10 things to consider when buying an investment property With our housing markets entering a new cycle - a new phase of strong growth - there are more people interested in getting into property investment. Close to 50% of investors who buy a property sell up in the first five years and 92% never get past the first or second property. In fact there around 1.9 million Australian investors never get past the first or second property and less than 21,000 Australian investors only six or more properties So how do you succeed, how do you get into that small group of investors who build a substantial property portfolio? Currently, there are so many options out there. Everyone seems to have become a property expert with an opinion of how to create wealth through property. And, I don't know if you've noticed - many of their suggestions are conflicting. So whether you’re a beginning property investor or an experienced investor, I’d like to help you take advantage of this new property cycle by discussing 10 questions that I believe all investors need to get their head around with Brett Warren, National Director of Metropole Properties, and my business partner who is based in Brisbane. What do I want to achieve? Is it money? Wealth? Financial freedom? Maybe all of the above! Remember the bricks and mortar are not really the end goal; rather they’re just the vehicle you choose to get there. So firstly, identify your end goal and then formulate a plan to get you there in a time frame that works for you. Unfortunately, most investors don’t have a plan and that’s why they get lost along the way or get distracted by the latest investment fad or the next “hot spot.” And if they do have a plan, I've found they rarely review it to make sure they’re on track. Maybe you don’t know what the future will hold – but you do know you need a substantial asset base. What is my preferred strategy? Once you know where you are going, you need to implement an investment strategy that helps you get there. Since you can’t save your way to wealth, my goal is to build a substantial asset base through capital growth. Where should I buy? Location is critical to the long-term performance of your investment. I look for suburbs that have always outperformed the averages or one’s going through gentrification. These are generally lifestyle suburbs in major capital cities close to the CBD, amenities, or the water. And the significance of the neighbourhood has only become more important. In urban planning circles, it’s a concept known as the 20-minute neighbourhood. What type of property? This will depend upon your budget and while, in general, houses deliver stronger capital growth than apartments, this has a lot to do with the location of your property. I'd rather own a villa unit, townhouse, or apartment in a great neighborhood in an inner or middle ring suburb than a house out in the sticks Today more people are trading their backyards for courtyards and balconies to be situated in the right locations. 6 Stranded Strategic Approach – only buy a property: That would appeal to owner-occupiers. Not that I plan to sell the property, but because owner-occupiers will buy similar properties pushing up local real estate values. This will be particularly important in the future as the percentage of investors in the market is likely to diminish. Below intrinsic value – that’s why I’d avoid new and off-the-plan properties which come at a premium price. With a high land to asset ratio – that doesn’t necessarily mean a large block of land, but one where the land component makes up a significant part of the asset value. In an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area including gentrifying areas. With a twist – something unique, or special, different or scarce about the property, and finally; Where they can manufacture capital growth through refurbishment, renovations, or redevelopment rather than waiting for the market to do the heavy lifting as we’re heading into a period of lower capital growth. Should I buy something old or new? More often than not, new or off-the-plan apartments are a “box” in a high-rise monolith. The problem here is that you pay a premium to the developer and miss out on the first decade or so of capital growth. At the same time, the majority of owners in the building are likely to be investors. I prefer buying where owner-occupiers, who look after the building better, predominate. This gives you the potential to not only increase your rental income but also “manufacture" some capital growth. When should I buy? There's no sense in trying to time the market, even the experts can't get it right. Instead, the right time to buy your next investment property or home is when you're in the financial position to do so. What can I afford? Before you start looking at what to buy, you need to know what you can afford to buy. Get a loan pre-approved and make sure you’ve set some funds aside for acquisition costs, holding costs, and a financial buffer for a rainy day or rising interest rates. Michael: Your budget – that determined by the bank Location – we are not prepared to compromise on that The type of property in the location How will I set up my purchase? It’s important to own your investment property in an entity that protects your assets and legally minimizes your tax. Whether you buy in your own name, your super fund, or a trust, you need to be aware of what it will mean for you and your family, now and in the future. That's why it's important to get independent finance and structuring advice before you buy your property. Who should I ask for help? If you are the smartest person in the room, you are in the wrong room! The real estate game is a team sport, requiring expert input and advice from a qualified accountant, a smart solicitor, a finance broker, an independent property strategist, and a mentor who will help set you up for a win. In other words, to secure your financial future you’ll need much more than just a buyer’s agent or a property strategist. Should I take advice from my friends and family? In general, the answer is - no! Not unless they're a particularly smart investor having invested successfully through a number of property cycles. This is because “the crowd” is usually wrong. As our real estate markets pick up and the cycle moves on, a whole new generation of investors will enjoy the prosperity property can bring. If you ask the right questions you could be one of them. 5 things you can do today to become more successful tomorrow You know what so interesting about success? When I look at people around me who are ultra-successful—I mean, whether it’s in their business, their investments, with money or in their physical health or maybe it’s in their relationships —it’s not that they’re any smarter. It’s not that they’re any more talented. They weren’t born with something special. Instead, they simply have a different mindset. They think differently and you’ve heard me say it before – your thoughts lead to your feelings; your feelings lead to your actions and your actions lead to your results. For these successful people, their outside world – the results you see - is a reflection of their inside world – the way they think. Here are five ways you can think differently to help make you more successful. The average person thinks “I can’t”. Successful people think “How do I?” Currently, many people are saying, “I can’t afford to get into the property market – it’s too expensive.” Yet a small group of people is asking a better question “How can I get into the property market?” and by doing that they spend less than they earn, save a deposit, educate themselves to become financially fluent, or take advantage of first homeowner grants or the 5% first home buyers scheme. The average person thinks “I want to”. Successful people think “I will”. In Star Wars Yoda famously said: “Do. Or do not. There is no try.” There is a massive difference between desire and commitment. And that’s why if you want to become successful, an important mindset shift is moving from “I want to do it” to “I will do it.” The average person thinks “It’s not my fault.” Successful people think “It’s my responsibility.” There is no such thing as a victim. Yet when things go wrong, most people love to say, “It’s not my fault.” In contrast, successful people take responsibility. Fact is, it doesn’t matter whose fault something is. Successful people take ownership and responsibility for everything in their life. The average person thinks “I got lucky.” Successful people think “I created my own luck.” A lot of people think that rich people are just lucky. Successful people are lucky. Great athletes are lucky. But talk to any of those rich people, those successful people, or the great athletes and you’ll find out it’s not luck. Sure, we occasionally get random good luck or bad luck, like winning the lottery or receiving an inheritance. However, the rich and successful people manufacture their own luck – they’re in the business of creating luck. They do certain things every day that creates the opportunity for good luck to occur in their lives. The average person thinks “It happened.” Successful people think “I made that happen.” A lot of people think that everything in their life just happened by accident. On the other hand, successful people realize that nothing happens. They understand the principle of cause and effect. They realize they are creating their future every day by the things that they do today. Just like you have created what’s happening to you today by things you did quite some time ago. For example, you are reading this blog today because a while ago you were interested in more success or money or property investment and you subscribed to my blog. Everything that happens is a result of something else. But the good news is, you can change your future by changing your way of thinking today and changing your actions today. So, if you’re unhappy with any part of your life, realize that you are where you are today because of all the things you’ve chosen to do, and the things you’ve chosen not to do. Now, rather than taking this as a negative, look at the positive side. So, the lesson from this is to stop treating your life like everything just happens. Start creating a new future by thinking differently and developing good habits. What’s the quickest way to do this? There is a shortcut, get a good mentor who can see your blind spots and who can teach you different ways of thinking. By the way that’s exactly what happens to those people who join us at Wealth Retreat each year. Join me for five transformative days on the Gold Coast from June 12th to 16th and get the one-on-one private mentorship you need to achieve your most ambitious goals and dreams. Not just in property, but in business and in life in general, because the aim of Wealth Retreat is to create Lifetime Wealth and leave a legacy. When you join us you will get: Mentorship- You’ll have the opportunity to interact one-on-one with me and our guest experts so we can help you gain deeper insight and achieve your specific goals in property, business, and life. Masterminding- You’ll spend several hours a day brainstorming and getting ideas, advice, and solutions to your challenges from a hand-picked group of high-achievers. Networking- You’ll have plenty of time to build relationships with the other participants during breaks, at meals, and at night, so you can connect on a deeper level and benefit from their input and expertise. Fun– the days will be very full, but at night we’ve got some surprises for you. And if you would like to get the highest possible level of support for your most ambitious life and business goals, I encourage you to join me there! You can learn more about this life-changing retreat here. Don't count yourself out... When you surround yourself with such motivated, energized, spiritually charged people, you tap into the power of the group and become more energized and powerful yourself. There’s no limit to what you can accomplish with the support and encouragement of such incredible people! Please note that to ensure the best possible experience, Wealth Retreat is limited to a small number of participants only. Learn more and register your interest today. I look forward to helping you perfect the life of your dreams! 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 Brett Warren – Director of Metropole Property Strategists Learn more about Wealth Retreat here Shownotes plus more here: 10 Critical Questions All Property Investors Should Ask Themselves with Brett Warren Some of our favourite quotes from the show: “You’ve got to know what the end game is, and it’s different for everybody and it depends how long your journey is.” – Michael Yardney “My preferred strategy is to invest for  capital growth.” –Michael Yardney “The answer is not just to convince the logical side of your mind that you’re going to do something, but you also need to work on the unconscious part of your mind. The emotional side.” –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 is no doubt that our property markets are in a broad-based boom, with almost all segments, other than the inner-city apartment market showing strong property price growth. And the media is having a field day whipping up a frenzy of emotions with headlines causing some buyers to worry that the housing market is running away from them. In fact, FOMO (fear of missing out) seems to be a common theme around Australia's property markets. But the general media and certain commentators on social media are worrying home buyers and investors by speculating that interest rates are about to rise or that unemployment will escalate to 8% when JobKeeper ends, or that everybody is moving to the country and city property values will be affected. So in today’s show, I want to bust some property myths in two segments. You probably know that I host a regular weekly Property Insiders video on my YouTube channel where Dr. Andrew Wilson gives sensible, down to earth commentary about what’s happening in the property market, and the audio recording of last week’s video will be the main feature of today’s show but first I’d like to bust some of the media myths about regional Australia’s property markets, who’s moving there and whether you should consider investing in regional Australia. The Regional Australia Myth I’d like to start by discussing the myth being promoted in the media that investing in regional Australia is a great idea. First, that’s a silly comment – there are so many different regional markets, as you know I don’t suggest investing in the Sydney property market or the Brisbane property market because even within capital cities there are many different markets divided by geography, price point, and type of dwelling. So, therefore, just suggesting investing in regional Australia makes little sense. Then there’s the argument that some put in the media that this particular town in regional Australia has performed better than the Sydney property market. Again, that’s a silly comparison, because the regional town may have 5, 10- 20,000 people in it and Sydney has 5 million people in it. A better comparison would be the long-term performance of a particular regional town against a high-performing capital city suburb. When it comes to investing, you shouldn’t be considering how you want to live, you should be investing in numbers, stats, demographics, and evidence and that’s what I’m going to share with you in a moment. What about migrants? We know that prior to the Covid pandemic and Australia shutting its borders, the population was growing faster than almost every other developed country and more than half our population growth of almost 400,000 people each year was coming from immigration. Property commentator Michael Matusik wrote a recent blog discussing the myths about regional population growth. Now there is no doubt that there is a small cohort of people who now want to live in regional towns within commuting distance of big capital cities because they have found they can work from home either part-time or full time, but Michael Matusik asks, “Is this what has been driving our regional property markets?” Matusik suggests that the real reason why the regions have seen an increase in net internal migration over the last 12 months is because people who would normally have moved from the regions to the capital cities are (for now) staying put. And the ABS statistics suggest that this is true. Net internal migration to the regions was 36,500 last year, which was up 14,000 or 62% on the year before. Now that sounds impressive, doesn’t it? But you know how you can make numbers lie and twist them to make your point? You see… net migration is worked out by comparing those that move into an area against those that leave the same place during the same time frame. Firstly, that the overall level of arrivals to, and departures from, regional Australia has fallen over the last 12 months. This is because there are no overseas migrants arriving in Australia. This impacts both the capital cities and regional Australia. Secondly, the ABS statistics show that there has been little change in the number of people moving from the capital cities to the regions, whilst on the other hand, there has been a big increase in the number of regional residents who haven’t moved. This trend increased during 2020 as certain Australian States implemented increasingly strict covid-related lockdowns and other restrictions. Around 70% of Australians live in our six main cities.  I don’t think this will change because of the pandemic. In short, the capital cities are where the jobs and the services that people want are located. The majority of high-paying jobs that are going to be created are going to remain in capital cities. Many regional residents have put their move to the capital cities on hold last year, and as a result, I believe we will see a big snapback to positive net migration to the capitals once the covid vaccines roll out and travel-related restrictions cease. Unless major money is spent on regional infrastructure and this amount rivals the amounts being spent in the capitals, any population movement to regional Australia will be modest at best. Matusik puts it well: “Despite recent weasel words suggesting otherwise the decision-makers must think this too. Ask yourself, if we were truly going to see a regional resurgence, then why is almost all the existing, and proposed, infrastructure projects focused on the major capitals and mainly in the inner-city areas within those cities.” if your investment budget is limited, and that may mean you can only buy one to three or four investments in your lifetime – you need to buy high growth properties in areas where the demographics will be able to afford to pay more in the long term pay more to buy properties and pay more to rent your property – don’t fight the big trends. Some of the Topics Discussed in My Chat with Dr. Andrew Wilson: The housing markets are surging Rental markets have been fragmented, with a disparity between house markets and unit markets Rental growth is continuing for houses, but on the slide for units Business investments have been coming back The government quickly pulled the country out of the recession that it purposely caused There has been strong growth in job ads, signaling that unemployment could fall quickly 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 Read Michael Matusik’s blog mentioned in the show here Join us at Wealth Retreat 2021 on the Gold Coast in June – learn more here Shownotes plus more here: Busting media property myths with Dr. Andrew Wilson Some of our favorite quotes from the show: “Don’t believe this media myth that investing in regional Australia is the right thing to do.” – Michael Yardney “It’s unlikely that those inner CBD high rise towers will start filling up until our international borders are open, students come back, Airbnb comes into the market.” – Michael Yardney “The problem is that people are listening to those “experts” on YouTube and “experts” on Facebook and they’re being a bit worried by 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

Have you considered getting involved in property renovations? If so, then today’s show is just for you. Making a tidy profit renovating a property seems like an attractive proposition, doesn’t it? And that’s why more real estate investors are turning to renovations: you know, buy low, renovate cheaply, add substantial value. That’s the aim of their game. Sounds simple enough. But it’s not really that simple. Sure, anyone can renovate, but not everyone can renovate for a profit. If you’ve been reading my blogs and listening to my podcast, you know that my preferred investment strategy is to add value. It is to manufacture growth through renovation and development. So in today’s show, I chat with Greg Hankinson, director of Metropole Constructions. Greg has completed thousands of renovations. We’re going to give you some tips and share some traps to avoid if you’re going to get involved in property renovations. And at the end of the show, I’m going to share my mindset moment with you. Renovations Insights and Mistakes The BRRRR strategy Buy, Renovate, Rent, Refinance, Repeat Flips flop You need to manufacture significant capital growth - upside to cover the costs and unless you do a structural renovation this is too hard to achieve – can’t achieve with cosmetic renovation. Patients take time, cost more, require permits and the associated costs could easily add 50% to your renovation budget. With cosmetic renovations, you can’t really get two dollars for every dollar you spend Why they flop - Transaction and holding costs, tax, unrealistic expectations, and flipping in a fickle market   Which tasks to outsource Anyone can renovate, but that doesn’t mean they can make a profit, so let’s look at some tips to make your renovations more profitable. What needs licenses – the electrician, plumber, any building works over 5000 in Victoria and different in other states Hire a project manager; don’t do the work yourself. Mistakes: Choosing the wrong location Do you need the right market location where there is a significant differential value if you renovate.? This is unlikely in cheaper blue-collar or regional areas. Become an expert in your location can’t rely on Internet reports avoid Main roads Wrong Property Cosmetic renovations – must be 20+ years old and of significant value, a lick of paint is not enough Structural – probably 50+ years old – must have good bones Refurbish versus renovate   What’s the difference? The refurbishment has no direct equity creation no additional capital growth but it does increase the rental returns and possibly some depreciation benefits Refurbish and not renovate? When a good property needs refreshing, kitchen bathrooms are in good nick, all the basics are sound, when if you renovated it would be a risk of overcapitalizing Not getting the appropriate permissions Check the permissions required Council & building permits? Owners corporation? Avoid overcapitalizing It’s very easy to find a property that needs a renovation, but not so easy to find one that will reap a profit. Work backward – establish a post-renovation market appraisal on the property, subtract the purchase price, associated costs, interest, and a healthy buffer and profit margin. What’s left is your renovation budget. As a rule, keep the renovation budget to 10% of the market value of the property Not allowing a sufficient contingency amount Once a budget is established, allow a contingency based on your experience level and the extent of the renovation works. Allow a little more if structural works or there are planning/building approvals required and a little less if the works are purely cosmetic. Ballooning budget Unreliable tradesmen, deadlines slipping through your fingers like sand, and alterations to the plan can quickly add up to cause your renovation budget to blow. Planning for delays and allowing for contingencies is critical to a successful renovation. Unexpected and Invisible costs From finding asbestos to hitting hard stone when excavating, these are just some of the unexpected costs that can come out of the woodwork when your renovation begins. These additional costs burn into your wallet, but removing the issues do not add perceived value to the property. Tailor the renovation for the target market  Becoming an expert in the area. Understand local demographics By knowing what the market expects, you can tailor the works to suit that market and therefore not spend on things that may not bring a return on your dollars.  It’s not how you want to live – think…The Block First impressions matter The wow factor – Natural light, fresh paint, new floor coverings, and window furnishings go a long way towards transforming a tired old property into something that will be sought after. Often it's the little things that can make or break a successful renovation. Neutral colors allow tenants to create their own identity with their belongings. Dominant colors and textures tend to close in the wall and make spaces feel smaller than they are.  If you’re doing cosmetic renovations make sure the changes you make are highly visible Don’t waste money rewiring or replumbing (OK for structural) New floor coverings, carpets polish floorboards paint, blinds, air conditioning Make people think you’ve spent more money than you have Houses - cement render the exterior Kitchens and bathrooms sell properties Beware of diluting your dollar by doing half the job If you renovate the kitchen but leave the original tired and rundown bathroom, it will de-value the kitchen and vice versa. If the budget doesn't allow for both of them, it may be worth deferring renovation works Avoid DIY Unless you’re a skilled tradesperson, don't get lured into to misconception that you'll save money by doing the work yourself. TV shows like the block glamorize and simplify the renovation process. In most cases, it will cost you the same or more but always take you longer if you’re doing the work yourself, therefore resulting in poor finishes, delayed completion dates, and unnecessary holding costs due to the extended completion times. How do you value your time? Many people do not factor in the cost of their own time and stress when ‘running the numbers’. Be prepared to set aside significant portions of your time for planning, making/taking phone calls, wrangling, and negotiating with suppliers, making decisions. If renovating is not your day job, this could mean hours after work and on weekends. Could that time be better spent with your family? Or doing your regular job? Remove the emotion Adding value to an investment property should be run like a business. There's no room for latest fads in design and you shouldn't be trying to make the cover of Belle magazine, that's for your own home. The purpose of renovating investment properties should always be about maximizing both the rental return and capital value of that property.  Get a good team around you Renovation involves coordinating various tradespeople - who are busy and unreliable Remember, they're the experts. They've done it before and probably seem the mistakes others have made. By getting close to your trades, you'll avoid falling into the same trap.  Don’t be stingy Stretch – you normally get only one chance per property every 20 years - do it right - don’t be cheap Thrifty is good, cheap is bad There's a lot of cheap products in the market place these days, especially online. In my experience, cheap stuff is cheap for a reason and will cost you more in the long term. Take engineered timber flooring for example; you can buy an imported laminated timber board from your local hardware store starting from about $19 that has a lifespan of 1-2 years if you’re lucky.  Same deal with paint, carpet, window dressings etc. Cheap just doesn't last and it's a false economy to suggest otherwise.  Ask yourself the tough questions "Do I have time to execute this renovation effectively?" If the answer to this "No" or "I think so?" Consider paying a professional to manage it for you. The additional cost will most like be offset by the works being completed in a more timely manner, to a higher standard, and with a guarantee.  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 Greg Hankinson Director Metropole Constructions Why not see how Metropole Constructions can help you. Shownotes plus more here: Renovations are a great way to lose your money if you make these mistakes | With Greg Hankinson Some of our favourite quotes from the show: “I know last year, during the difficult times of letting properties with COVID, our team at Metropole constructions did a lot of refurbishments and quite a few renovations, and those properties, when they got put back onto the market, actually got leased very quickly.” – Michael Yardney “It’s very easy to find a property that needs renovation, but it’s not as easy to find one where you’re going to reap a profit at the end.” – Michael Yardney “You get one chance to do this every 20 years or so. Do it right, don’t be cheap.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

As 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, today I’ll be looking forward into the future as I chat with leading demographer Simon Kuesetenmacher about what he calls the Big Shift – some major demographic changes that you should be aware of if you’re interested in the property or if you’re in business But first, let me give you a couple of quick lessons from 2020 to help you take better advantage of our property markets. Timing the market is hard. Anyone who tried to time the top or the bottom of our property market over the decades I’ve been investing has usually missed out, so I would suggest spending your efforts finding the best asset you can rather than trying to time the market. Don’t try and fight the RBA or our government.If you think about it, it’s a government job to look after its constituents and protect them – not just by providing police and hospitals and the judicial system; but also protecting their jobs and the value of their biggest asset - their home. Economic depressions can be avoided. Our regulators have learned a lot over the last couple of decades and 2020 proved it - a rapid, large and well-targeted economic policy response can protect an economy from a significant shock and enable it to rebound quickly when the threat abates. Be careful who you listen to and turn down the noise. Last year investors were bombarded with information and opinions around what the coronavirus would mean to our economy and our property markets but much of this was just noise. Now that I have shared some of my lessons with you we are going to hear what Simon Kuestenmacher has to say, and even though we have discussed some of these concepts in previous podcasts, I’m sure you’ll get a lot out of my chat with him as he introduces some new concepts we haven’t discussed before that I think will help give you some clarity on what’s ahead. And as always, I will share my mindset message with you at the end of our show. There’s a big shift ahead for our property markets If you’re like many Australians you’re probably wondering what’s going to happen to life beyond coronavirus. What's going to change in the way we live, work, and organize our cities? The simple answer is... quite a lot! And if you're a property investor, or a business owner you must understand how Australian cities are reshaping to stay ahead of the game. That’s what I going to chat about today with Simon Kuestenmacher, one of Australia’s leading demographers as I ask him for some insights into what his research suggests is ahead. 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. Just to put some context to our chat… It’s easy to forget that one year ago we have a government dedicated to balancing the budget and bringing in a surplus. Our property markets were rebounding, and business owners would looking forward to a great year ahead. Then look what happened in 2020 - we experienced a pandemic, a lockdown and a recession, and then a rebound. Fortunately, we controlled the health issues better than almost every other country in the world, and it seems that our government has minimized the impact of the coronavirus cocoon induced recession. But the dynamics of our society have changed considerably. So, what next?  Global context What’s happening in the world economy? Australia’s economy has recovered remarkably quickly International capital and international talent will still want to come to Australia Based on sheer economic data, investors might want to invest in Australia, New Zealand, S. Korea, and maybe Taiwan Local Context Lower population growth Some sectors of the economy are booming and others floundering Despite COVID & temporary low migration, the pie keeps growing in the 2020s. Demographics drive particularly high demand for family-sized homes. Low demand for small apartments before migration amps up again. COVID and working from home will reshape our cities. CBDs perform poorly for a few years; outer suburbs & regional towns benefit from millennial families seeking sizeable homes. Millennial values will transform suburbia. Expect more demand for active transport, hipster cafes, and family-friendly spaces. We will want future homes to be pandemic-proof The rise of the 20-minute Neighbourhood Pre-Corona Fried Egg – Post-Corona Scramble Egg Location is critical to the long term performance of your investment. It seems that in our new “Covid Normal” world, people love the thought that most of the things needed for a good life are within a 20-minute public transport trip, bike ride or walk from home. The ability to work, live, and play all within 20 minutes’ reach is the new gold standard desirable lifestyle. Imagine being able to carry out your daily activities within a 20-minute walk from home.  All the things you need in a day would be just a short walk away. Things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs. In urban planning circles, it’s a concept known as the 20-minute neighborhood. What type of property will be more in demand post-COVID-19? WFH will mean different desires – zoom room, gym, extra room for home office Some will see high rise apartment towers as “vertical cruise ships” - high-rise buildings were designed to organize as many people as possible in one place. With busy lifts, shared hallways, and communal facilities like laundries and garbage disposals, high-rise living is the ideal breeding ground for the virus, as we’ve seen both in Australia and overseas. So, it stands to reason that the buyers of 2021 and beyond might not be so keen to live in an apartment and be breathing the same air and touching the same lift buttons as hundreds of other people. Instead, they may prefer to purchase standalone dwellings that they can barricade and sanitize to their heart’s content in the event of another wave of the virus. Similarly, we’ll want to be able to separate work and living spaces. We all need a Zoom Room nowadays. I can only imagine what a nightmare the stay-at-home orders must have been for parents with small children living in apartments without a garden, or for gym junkies forced to substitute cans of baked beans for their usual weights in their at-home workouts. As such, room for a home gym setup, space for the kids to do their karate or dance classes online, and a reasonable outdoor area for the family to get some fresh air and vitamin D are likely going to shift from the “nice to have” category into the “non-negotiables” list for owner-occupiers. The hollowing out of the Australian workforce Education determines your income and spending capacity The increasingly polarized workforce drives property prices and geographical segregation. Low- and high-income workers demand similar things from their homes but are driven to different locations. That puts social cohesion at risk. Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group As our markets move forward why not get the team at Metropole to build you a personalized Strategic Property Plan – this will help both beginning and experienced investors. Shownotes plus more here: Successful property investors must understand this Big Shift, with Simon Kuestenmacher Some of our favourite quotes from the show: “How often have you heard me say over the last couple of years that you shouldn’t make 30-year investment decisions based on the last 30 minutes of news?” – Michael Yardney “Sections of our economy are doing pretty nicely, and it’s the demographics that are going to drive demand.” – Michael Yardney “Not one person said you should choose your work based on your desire for future earnings.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Success is no accident. The most successful people in life – whether in business, family life, music, or on the sports field – may not always seem like they have much in common. How are The Beatles similar to Steve Jobs? Or Warren Buffett and Shane Warne? But when their traits, habits and work ethics are distilled down, these unlikely characters share many similarities. You see, aside from the random element of luck, much of what makes some people successful involves the cultivating of certain habits. Learning what these habits are and how to employ them in your own life is worthwhile. So in this month’s Build a Business Not a Job podcast, I’m going to discuss 15 of the common success habits with Mark Creedon founder of Business Accelerator Mastermind. And if you’re not in business or planning to go in one, if you’re planning to be successful in your life, in your career, or as a property investor you’ll definitely be listeners And then I’m going to have a chat with Mark about his new book – Have a Business not a Job and I’ll get Mark to share 3 special tips or takeaways from his book you could start implementing straight away. Habits of Highly Successful People Capitalize on the time you’ve got. Time is your most valuable and scarcest resource. Successful people understand this and think in terms of minutes instead of days and weeks. They understand the true value of their time and manage their priorities accordingly. Understand what the most important task is that you have to do in your day. Lock that in and schedule time to work on that task first. Control your inbox. Schedule meetings as a last resort and make sure that you have a clear time frame. There’s no sense in having a meeting just to have a meeting. Say “no” to more things. Business owners appreciate input from workers who know how to prioritize immediate goals. 80 percent of your results will come from 20% of your activities, so slow down and take stock of your activities and what actually is getting results. Consider batching your work. If you can do something quickly, get it out of the way. Do it, delegate it, or delete it. Know the rules of delegation. Set aside time to journal. It allows clarity of thought and the opportunity to take stock for a moment. Look after yourself, your body, your energy, and your focus. It’s not a constant marathon, try taking the time in sprints instead. Takeaways from Mark’s Book The book was designed for people who were just getting started in their business journey and to help them overcome some of the hurdles. Or for people who own a business that they have to work all the time (so it’s still a job.) Some of the major things readers will take away from the book include: Understanding that time is the most precious commodity that they have, so they’ll understand how to make better use of it. Understanding that the people around you are your most important asset. Tapping into what the true product is that you’re selling. 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 Shownotes plus more here: The 12 habits of highly successful people you should also practice with Mark Creedon | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: “Most people work on other people’s most important task first.” – Michael Yardney “Every time you put something on your list, you’re actually saying “no” to something else.” – Michael Yardney “Clients really seem to want a straight answer, take away my problems, help me by protecting me.” –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.

Property values can’t keep rising! It’s all a Ponzi scheme and is going to come crashing down around us! The only reason our property markets have survived COVID-19 is because of bank and government support. That’s some of the commentary you’ll find in the media and over the Internet at present and on the other hand you’ll find many experienced property commentators saying we’re at the beginning of a new property cycle, one where property values will rise considerably. Who is right? Can property values keep rising, and can they rise as much as they have over the last three or four decades? That’s the question Stuart Wemyss and I discuss today as we explain the various factors that created the significant property price growth over the last couple of decades. However, looking forward many of those growth drivers won’t be the same. So what’s ahead for property values? That’s what we going to discuss so welcome to today’s show. Will property values continue to rise? As we enter the beginning of a new property cycle some people are asking can property prices continue to rise at the same rate at which they have over the last three or four decades? In fact, some people asking can property values keep going up at all considering how expensive they are today? I know that’s a question that has been asked of Stuart Wemyss, an independent financial adviser and author because he’s written recently written a blog outlining his thoughts, so I look forward to hearing how he would answer these questions. Some of the topics Stuart and I discuss In Stuart’s blog he had a graphic showing what happened to house prices over the last five decades from 1970 to 2020. Now I know I bought my first investment property in the early 1970s, paying $18,000 and I got $12 a week rent and I was excited. $18,000 was a lot of money in those days when the family car was a Holden Kingswood and cost $2000; so I guess one of the first things we have to do when looking at house prices is see how they performed after inflation. Property has always been expensive. It seemed like a lot of money in the 70s because it was a lot of money in the 70s. You need to take a longer-term view to understand how property prices have occurred. But no, property prices can’t keep growing at the same level. Over the last 40 years, there has been population growth along with the rise of 2-income households. Some properties won’t increase in value, but others will and some will perform better than others. It’s important to look at real price growth, ignoring inflation. The bigger impact population growth has with investment-grade property is overall economic activity. Established money areas are liable to do better over the next 2 years or so. Borrowing capacity not likely to increase, interest rates not likely to decrease because they’re already low. You want a property that will appeal to someone whose income is rising faster than the general population People from the work from home movement will want to live where things are, not out in areas where there’s nothing around. Links and Resources: Stuart Wemyss’ blog mentioned in this show – Property prices cannot keep rising at the same rate 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: Property prices can’t keep rising at the same rate they used to; with Stuart Wemyss Some of our favorite quotes from the show: “It’s real, after inflation, growth that’s important.” – Michael Yardney “There are more of us (Australians’s), but we’re also wealthier. We’re earning more.” – Michael Yardney “As always, demographics is going to be very important moving forward.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Have you ever wondered how certain people become so rich and successful? Well, if you’ve been listening to my podcast or reading my blogs and my books, you’d know that rich people don’t become rich by luck or by accident. Becoming rich requires hard work, dedication, and a certain set of habits. We are what we repeatedly do. That means excellence isn’t an act, it’s a habit. My friend Tom Corley spent five years studying millionaires and gathering insights that become the basis of his blogs and books, including the book we co-authored: Rich Habits, Poor Habits. He found that people who became wealthy practiced certain habits, and that’s what we’re going to discuss today. Since there are so many habits, we’re going to break this into a two-part series, and today we’re going to start with the first group of habits that the rich do that differentiate them from the average person. Rich Habits Of course, not all rich people are successful, and not all successful people are rich; but remember I was much younger and more naïve then and wanted it all. So I tried 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 modelled 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. And over the years I’ve mentored more than 3,000 successful (and some not so successful) investors, business people, and entrepreneurs. In fact, a by-product of this is our top-selling book – Rich habits Poor Habits In it, Tom Corley and I explain… 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. We’ve found rich people share similar habits. While we explain this in some detail in our book, today I’d like to briefly share… The first of the 21 Success Habits of The Rich …. The average person thinks about spending their money, while the rich think about how to invest their money. The average person worries about running out of money while the rich think about how to use their money to make more money. Most people believe hard work makes you rich, while the rich know that leverage creates wealth. Successful people don’t procrastinate. They don’t spend their life waiting for the ‘right time’ or waiting until they know it all or have figured everything out. The average person believes having a job gives them security. The rich know there’s no such thing as “job security.” Most people want to be rich. The rich are committed to being rich. (They are very different things.) When things go wrong, the rich find a lesson, while others only see a problem. The average Australian sets their financial expectation low, so they’re never disappointed. On the other hand, the rich set their financial expectations high so they’re always excited. Successful people take calculated risks – financial, emotional, professional, psychological. But once they’ve built their wealth, they take fewer risks.  The rich consciously and methodically create their own success, while others hope success will find them. The rich look for and find opportunities where others see obstacles. The average person believes life happens to them. They are a passenger, while the Rich believe that they create their own destiny. They are the pilot of their lives.   Successful people align themselves with like-minded people. They understand the importance of being part of a team. They create win-win relationships. 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 1 with Tom Corley Some of our favourite quotes from the show: “As you’ll learn, it’s not your fault if you’re born poor. But it is your fault if you die poor.” – Michael Yardney “It depends what your focus is as to what you see.” – Michael Yardney “2020 taught us the importance of that. How many people who had multiple income streams – such as you, such as me – still had a really good year, while those who were dependent on one income stream, unfortunately, found that dried up.” – 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.

Navigating the world of personal finance can be overwhelming, even for an adult who has quite a bit of experience in the working world. Yet with some smart planning, a good strategy, and an understanding of the basics you should be able to develop the money-management skills you need to get your finances under control. And that’s what I discuss in today’s show with Australia’s leading finance columnist Effie Zahos. While many people listen to this podcast because they’re interested in property investing, money management is a critical part of any type of investing, and especially real estate investing. You need good money management to save your first deposit and once you own a property or two money management is even more important. So don’t let the financial world intimidate you. You may not have been taught much about finances, but I believe that 80% of personal finance is not financial education, but financial behaviour. If you can modify your behaviour with your finances, you can modify your financial future. And even if you don’t have money problems, I think you’ll enjoy my chat with Effie today as we discussed her new book and some lessons that we should be teaching our children and grandchildren. And of course, I will be sharing my regular mindset message with you. Ditch the Debt and Get Rich The Covid-19 pandemic impacted just about every Australian. Some people manage to cope well financially – others did even better financially turning lemons into lemonade, however, many Australians ran into financial difficulty with some only managing to stay afloat by raiding their super or putting a pause on their debt It was just another example of the rich getting richer and they did so by understanding the way money and finance works. Now you know one of the aims of my podcast and my blogs is to make more and more Australians financially fluent and help them get control of the finances. So, I was pleased to hear that leading Australian finance commentator and author Effie Zahos has just published a new book called Ditch the Debt and Get Rich. Effie Zahos is one of Australia’s leading personal finance commentators, with more than two decades of experience helping Aussies make the most of their money. She’s a regular money expert on Channel 9’s Today Show and on radio around Australia and was editor of Money magazine and is now Editor-at-Large at Canstar. Some of the subjects that Effie and I discussed Effie’s journey and why she believes it’s so important to be the best financial version of yourself and learn the right things to teach your kids about finance. Why more Australians aren’t wealthy and how they’ve become an instant gratification society. The importance of mindset in developing wealth. Money personalities – The animal traits that correspond to how you deal with money: Peacocks, Squirrels, Sloths, Owls, Ostriches The problem of buy now, pay later, and how to be more aware of the tricks retailers use to get us to spend. How to break the cycle of living payday to payday by no longer setting yourself up for failure. And how to put yourself on a bare-bones budget to catch up. Common money mistakes. Debt repayment strategies. How to think rich in order to become rich. How children learn financial literacy from their parents. Some of the lessons Effie has learned over many years writing and speaking about finance. It’s not what you earn that counts it’s what you spend. Compound interest can make you a millionaire. The great Albert Einstein once said: "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it". Learn to say no I am my best investment I will continue to make mistakes love your superannuation fund Set your savings on autopilot Have a plan and stick to it The people who will most benefit from Effie’s new book: savvy investors, people who need a nudge, and people who want to be a better financial version of themselves Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Effie Zahos’ new book – Ditch the Debt and Get Rich Shownotes plus more here: Ditch the Debt and get Rich with Effie Zahos Some of our favourite quotes from the show: “There’s a whole science behind behavioural finance, and that’s why I think reading your new book Ditch the Debt and Get Rich is important.” – Michael Yardney “Some financial discipline early in life will allow people to have those enjoyments later on.” – Michael Yardney “The gap between what you gain and how much you avoid offsetting the gain is the figure that matters the most.” – 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