Property Investment, Success & Money | The Michael Yardney Podcast

I’m often asked what are the big lessons I’ve learned from investing in property for close to 50 years? Probably the most important lesson I think we can learn is that the market is driven not only by the fundamentals but also by the irrational and erratic behavior of an unstable crowd of other investors and homebuyers. So never get too carried away when the market is booming or too disenchanted when the market slumps, because letting your emotions drive your investments is a surefire path to disaster. Today, I’ll chat with Brett Warren about some of the lessons I wish I’d known when I first started investing. If you can learn these lessons now, you can avoid paying some of the learning fees that I had to pay to the property market as I made mistakes. Now today’s episode is part of what I call our summer series where apart from bringing you one new show each week we are replaying 2 previously published shows, and the foundational lessons I’m going to share in today’s show which was originally published a number of years ago will help you take advantage of the new property cycle that is appearing in front of our eyes in 2021 Before we get into the main body of the podcast, I’d like to share two more lessons I’ve learnt over the years that I would’ve loved to have known when I first started investing. The first is that every year there is an X factor, and an expected factor that comes out of the blue to undo my best laid plans. Sometimes these are on the negative side and sometimes they’re on the positive side like the unexpected election win in 2019 that led to strong property markets at the end of that year. The other big lesson that has taken me a number of decades to understand is that every 10 years or so the world breaks. Think about 2020 with the Coronavirus creating a world pandemic and recession. Then look back at 2008-9 with the Global Financial Crisis and before that was the Asian financial crisis. Can go back every 10 years or so and I found the world breaks. These lessons have taught me to be have a long-term focus and not make 30 year investment decisions on the last 30 minutes of news. They have also taught me to ignore the doomsayers and be very cautious of who’s forecasts I pay attention to. The value of education It’s easy to think you’re smarter than you are when you don’t know what you don’t know. Goal setting Setting goals helps you focus because if you don’t know where you’re going, while any road may get you there, every road may also get you lost. Create a property team Most people think they know a bit about property. While property investing may be simple, it’s not easy. You need to create a good team around you including mentors and advisors. If you’re the smartest person in your team, you’re probably in trouble. Think like a rich person Develop the mindset of rich people and build the rich habits that will help you achieve wealth Have an abundance mentality An analogy is to think of yourself as a cup. If your cup is small you can only accumulate a small amount of money, any extra will spill over and you will lose it. You simply cannot have more money than the size of your cup. Instead, develop an abundance mindset in which your cup is big and deserving of being filled with success. Delay gratification To become rich, you must learn to delay gratification as wealth is the transfer of money from the impatient to the patient. Overcome your fears Fear can prevent us from investing because we see it as too risky. Form a sound investment strategy, and get a property team around you to minimize the risks. Don’t give in to fear Don’t let failure hold you back We all make mistakes, but you can’t allow them to hold you back. Learn from them and move forward. Understand the power of compounding and leverage The earlier you start investing and the longer you hold your properties, the more time your money has to grow. Property won’t make you get rich quick. Having invested for nearly 50 years now, one of the many lessons I’ve learned is that property investment is not a “get rich quick” scheme. It’s a get rich slow one! Ignore white noise It’s not the media’s job to educate you. It’s their job to entertain you and get you to click on their links. Keep your eyes on your long-term goals and don’t spend too much time worrying about short-term challenges in the market. Capital growth and cash flow are both important Residential real estate is a high-growth, relatively low yield investment vehicle and the key to wealth creation is to grow a substantial asset base of “investment grade” properties. However, while capital growth gets you out of the rat race, you need solid cash flow to keep you in the game. Location is non-negotiable Remember that 80 percent of your property’s performance will be due to its location and about 20 percent because of the property itself– so never compromise on location. Develop financial discipline To become rich, you will need to learn to spend less than you earn, save the difference, and eventually invest it. The problem is that too many people throw away their money buying things they don’t need with money they don’t have to impress people they don’t like. Gratitude is important But I’ve learned over the years that true wealth has nothing to do with how many properties, or how much money, you have. Give back to the community and charity Apart from being grateful for what you have, you also need to give back to the community and charity. I believe it’s our responsibility to help others who are less financially fortunate. Links and Resources: Michael Yardney Brett Warren - Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in November 2020 – find out more here Shownotes plus more here: 16 Things I wish I knew when I first started investing - Summer Series Some of our favourite quotes from the show: “Today, there’s no shortage of information. I guess what there is a shortage of though, is perspective.” –Michael Yardney “If you believe you deserve to be rich, if you believe you deserve to be successful, you will achieve that.” –Michael Yardney “It takes probably 30 years to develop a significantly big asset base to start to live off of 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

Not all investors are created equal. If you want to become a successful property investor you really need to understand the five levels of investing which is a model that I’ve designed to explain how most investors progress along their path to financial freedom. Just to be clear, this has nothing to do with your level of income. It has a lot to do with your financial fluency and financial intelligence. If you want to work your way up the rung of investors, you’re going to have to understand which level you’re at right now present and what you have to do to work your way up to the next level. After today’s episode, you’ll understand more about the levels and where you fit into them. Then after I’ve explained the five levels of investing, I’m going to share a mindset message from one of my mentors. The Five Levels of Investing Level 0 – The Spender Those at level 0 end up with a high level of debt because they spend and borrow, living paycheck to paycheck. They aren’t really investors at all; they’re spenders and borrowers. Level 1 – The Saver Those at level 1 have one main investment – their home. They save money, but they save it to spend it later, not to invest it. Savers are often unwilling to take any risks with their money and fear financial matters that look risky. Level 2 – The Passive Investor Those at level 2 are aware of the need to invest in order to grow wealth. However, they don’t necessarily understand the rules of money and may be hanging on to outdated ideas about finance. Passive investors look for outside sources and “experts” to tell them what to do with their money instead of educating themselves, which can make them easy prey for get rich quick schemes. Level 3 – The Active Investor Those at level 3 are actively involved in their investment decision and take responsibility for their own financial futures. They focus mainly on growing their asset base. Active investors understand that they can’t do it all themselves, so they form networks of advisors and peers or join Mastermind groups. Level 4 – The Professional Investor Those at level 4 have risen to a level where they have built and now manage their own investment business. They have a substantial asset base that generates enough passive income to pay for their lifestyle, and they continue to grow their portfolio whether or not they work a real job. Professional investors retain control of their investments while employing a team to help them continue to achieve consistent results. Where do you fall in the levels of investors? Not everyone makes it to Level 4. In fact, few get that far. But you can, once you understand why the rich keep getting richer. Links and Resources: Michael Yardney Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in June this year – find out more here: Wealth Retreat 2020 Shownotes plus more here: Do you understand the Five Levels of Investing? Summer Series Podcast Some of our favourite quotes from the show: “Level 4 investors rarely stop educating themselves.” – Michael Yardney “A final point about Level 4 investors is that they teach their financial knowledge to their children. They pass on their family fortune to future generations.” – Michael Yardney “You can be a low-income earner when it comes to your day job, but still be a level three investor and have financial security.” – 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 into a new year, and there’s lots of good news on the horizon. We’re going to have a better year this year than in 2020. We can’t have all of those challenges again this year, can we? There’s lots of good news. The economy is picking up, we’ve beaten the recession, it looks like we’ve contained the virus, and there’s an earlier-than-expected arrival of a vaccine. The path to normality has come along a lot faster than we expected. What happened to that fiscal cliff? It was merely a step down before we started to ascend again. But among all of the good news, there’s some bad news. Some people have had health issues last year, others have had financial issues that are continuing on. To increase your chances of financial and property success in 2021, I’m going to have a chat with two experts who are going to share their wealth building tips with you, in addition to some tips for success in 2021. Highlights of my interview with Kate Forbes: Kate’s advice included:- The only certainty we have is that everything will change. Every year there’s an X factor – an unexpected event that affects our markets on the upside, or often the downside. You need to be able to roll with the punch and tweak things to adjust, even within your long-term investment strategy We can only hope for the best, but 2020 shows that we also have to plan for the worst Insurance offers a buffer and peace of mind Owning quality assets are also a form of insurance, that’s why it’s important to own the best assets you can afford The best strategy is acquiring the best property you can at the best price you can and sitting on it The strategy of reinvesting may not be appropriate for as many people at present. Don’t try to time the market You’ll need a more holistic approach to be successful in 2021 Highlights of my interview with Ken Raiss: The lesson this year is nothing new from prior years. People who don’t get good advice make the same mistakes over and over again. Strategic investors structure their purchases to protect their assets and maximize their cash flows It’s harder and more expensive to fix these ownership structuring mistakes after the fact In 2021, review your affairs to minimize risk All investors should have a holistic plan that maps out their journey The plan should maximize their wealth creation and protect it and pass it on to the next generation The plan needs to have the correct structure to meet these goals 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 Kate Forbes – National Director Metropole Property Strategists Ken Raiss – Director Metropole Wealth Advisory Shownotes plus more here: Wealth building tips for 2021 from 2 property experts – with Kate Forbes and Ken Raiss Some of our favourite quotes from the show: “That’s one of the reasons the percentage of first homebuyers is at record levels.” – Michael Yardney “Taking on extra debt, taking on extra commitments doesn’t actually help their cash flow.” – Michael Yardney “Buying an investment isn’t an event, it’s actually a process and it starts long before you buy 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

Let me ask you a question - Have you made any mistakes in your investment career? If you’re an investor, you almost certainly have made some mistakes. Nobody starts out as a great investor – property investment is a learned skill. Today, I’m going to share with you one of the biggest mistakes I made early on in my investment career indisputable proof that I began life as an investment suck up. Today’s show is part of what I’m calling the 2021 Summer Series where we replay some of the best episodes of the past. Throughout January I’m sharing 3 shows a week with you rather than normal 2; and the reason I’m keen for you to listen to today show is because I hope you’ll learn something from the big mistake I made. You see… I was taken in by a spruiker. In the almost 50 years that I’ve been an investor nobody has made mistakes in the investment journey than I have. In fact, I often say I’m a real success at failure. Yet I’m a very successful investor today, and that’s largely because I’ve learned from my mistakes. So, as I said, I hope you learn from my mistake, made early on my investment journey where I lost 100% of my invested capital, and that was one of the many learning fees I paid to the market over the years. Subsequently, I made lots of mistakes and paid lots of learning fees along the way, and that’s one of the reasons I share these regular podcasts with you to help you avoid making the same mistakes. Now the mistake that I’m going to share with you today was made in the early 1970s, but the lesson is just as relevant today because now that our property cycle is now entering a new stage there are plenty of sharks out there, plenty of property spruikers out there giving “advice” who have a vested interest rather than your interest at heart. And I hope you enjoy our chat as I expose a few things about my past. Then I’m then going to have a chat with Pete Wargent about 3 demographic trends you need to understand as a property investor. But remember, this is the replay of a show that was recorded a couple of years ago, yet the information is timeless, so it’ll be interesting to see the comments we made about demographics before the coronavirus affected our markets in 2020. However, I believe the long-term trends Pete and I talk about are just as relevant today as they were back then. I also have a great mindset message for you. My Worst Investment Loss Exposed! I’m keen to tell you the story of how I lost 100% of my invested capital many years ago, way back in the 1970s, and the investment mistakes I made which created this disastrous result. But first I want to explain the 2 main reasons why I’m sharing this story. Losing investments can be great teachers. You’ll not only learn from the investment mistakes you make, but you can also learn from other people’s investment errors so that you don’t have to make the same mistakes yourself.  Most investors pay the market a huge learning fee in the way of mistakes.  Studies show that around 50% of investors who buy an investment property sell up in the first 5 years.  Clearly, they’ve done something wrong.  And most investors who stay in the game don’t make it past their first or second property, so clearly, they’re not doing things right. So why not learn how to avoid their common mistakes? Losses are a natural and normal result of making investment decisions. Don’t be so hard on yourself when things don’t go as planned because the key to long term success is what you do when this occurs and the lessons you learn from your mistakes, so you don’t repeat them. Here are a few of the more obvious mistakes I made with this investment: I gave my money to a virtual stranger without doing enough due diligence I invested in something I didn’t understand I bought a story rather than investment fundamentals. I was lured by the opportunity of making quick money In reality, I was speculating, not investing and risked money I couldn’t afford to lose. I had no investment strategy – just a desire to get rich quick. I learned many lessons from this experience including: Not everything that glitters is gold Sometimes your best investments are the ones you don’t make. Don’t invest in anything you don’t fully understand. I knew nothing about gold mining, so I was speculating rather than investing. I had no competitive advantage and there was no mathematical expectation for my investment strategy. One of the worst things that can happen to an investor is to get it right the first time. I thought I was smarter than I was when in reality my investment success so far was in large part to a rising property market – a boom that made me look smarter than I was.  Don’t become overconfident -the market will soon humble you. I didn’t understand the incentives of the so-called “advisor” who really had a vested interest which created biases in the recommendations he gave me. My worst investment mistake was a cheap lesson This investment was the first of many learning fees I’ve paid to the market over the years. I’ve made a lot of mistakes and paid a lot of learning fees during my journey to investment success. Nobody starts out as a great investor.  Property investing is a learned skill. You now have indisputable proof that I began life as an investment sucker.  Few people have made more mistakes in their investment journey than I did. In fact, I’ve often said I’m a real success at failure.  Yet, I’m a successful investor today, and it’s largely because I’ve learned from my mistakes. I hope you’ve also learned something from my mistake. Highlights from my conversation with Pete Wargent about Demographics Demographics drive the property markets One of the big changes ahead are the technological advances that will change the way we work. As many as 30-40% of the jobs today may not exist in their current form by 2030 Property price growth is linked to wage growth so it’s important to understand what’s going to happen to wages Livability becomes more challenging as cities become larger and infrastructure and transportation don’t keep up People will want to live near where they work and near public transportation, especially in cities large enough for car ownership to not be realistic for many people Links and Resources: Michael Yardney Metropole Property Strategists Pete Wargent  Next Level Wealth  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: My biggest investment mistake exposed | 3 demographic trends all property investors must understand with Pete Wargent - Summer Series Some of our favourite quotes from the show: “I’ve actually learned to say no to more opportunities that come up than yes, and I’ve made more money by saying no to them.” – Michael Yardney “One of the key factors to my investment success is that I always try to learn from my mistakes.” –Michael Yardney “Your mentors are the people that you hang around with that you learn habits from.” – 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

While you’re listening to this podcast, my wife and I are away on our vacation. Unfortunately due to Covid, it’s not the extended overseas trip we usually take at this time of the year, but we are able to take a number of breaks each year because we’ve built a substantial property portfolio that gives us the lifestyle we enjoy. I’m not showing off. What I’m suggesting is you should also build a substantial asset base to give you choices in life. How are you going to do that? How are you going to be different from all those investors who don’t get past their first or second property? The answer is to learn from those who have already succeeded – who’ve achieved what you want to achieve. That’s what Pete Wargent and I are going to talk about in today’s show. As part of our summer series, I’m replaying the show it was it first published about a year ago where Pete tells us what he learned from successful investors when he attended Wealth retreat. I’ll also share something special in today’s mindset moment. Wealth Retreat Pete Wargent is one of the regular presenters at Wealth Retreat. But he attends to learn as well as present. Today he’s going to share some of the tips he learned at last year’s Wealth Retreat. There’s not one property market There are multiple property markets around Australia all at different stages of their own cycle. In a boom, everything sells. But when a downturn comes, you can see how much better well-appointed properties hold their value. That’s why you need a tried and tested formula and an investment strategy that always works, not one that only works right now. If you want to grow your business, you need a business coach You never know which nuggets of advice are going to make all the difference. Even if you’re already successful in your own right, you can still use advice from other successful people. It helps to have someone to hold you accountable. The power of networking The most successful people always have the most powerful networks, so anything that you can do to build a network of successful, like-minded, and powerful people can only help. But there’s only so much time in your life to make connections, so an event like the Wealth Retreat is a perfect opportunity to meet with the right sort of people. Links and Resources: Michael Yardney Metropole Property Strategists Pete Wargent  Join us at Wealth Retreat 2021 in June 2020 – read all about it here now and express your interest Some of our favourite quotes from the show: “It’s isolating, it’s hard on your own and you need a tribe around you. But you need the right people.” –Michael Yardney “Why not, while you are an employee, set up your own business on the side.” – Michael Yardney “Failure is never permanent. That sinking feeling that you’ve got, that will never last forever.” – 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

Did you make New Year’s resolutions for 2021? What were they? Were you planning to get more money? Become healthier? How many have you broken already? My resolution of eating more healthily didn’t last long. But I know that a lot of people are planning to make 2021 a great year considering the challenges and how many opportunities were lost in 2020. So, in today’s episode, I’ve got two segments to help you if you’re interested in property investment. The main segment is a long, detailed discussion about gentrification. You see…If you understand how gentrification works and what to look for, you can consistently outperform the market with your investments because of the cycle of the suburb. Then in my mindset message, I’m going to ask you where you’re going to be in ten years’ time. Because wherever it is, you’re surely going to be there. But are you deciding how you’re going to get there and if you’re doing the right things to get to the right spot? Gentrification and the cycle of the suburb Gentrification represents a powerful opportunity to increase both your property returns in the short term, and your overall real estate wealth in the long term. There is no such thing as one property market in Australia – instead, there are multiple property markets, each with their own specific drivers and fundamentals. While each state has its own property cycle, suburbs have their own cycles as well. These suburbs are “gentrifying” – which means that they are going through a period of improvement. In general, capital growth in these areas will outperform the averages. These areas go from and ugly ducklings to a beautiful swan and therefore the homes in these suburbs increase in capital value faster than the average. As a property investor, if you can identify an area at the earlier stages of gentrification and buy while prices are more affordable – you stand to benefit from ongoing capital growth. What caused this gentrification? One of the main factors behind this revitalisation was the exodus of manufacturing to the suburbs, driven in part by cheaper transport and better roads. At the same time, many migrant workers departed to the suburbs to live in detached houses with front and back yards. Interestingly at around the same time, our society started to experience higher education levels, which necessitated more people being closer to campuses. These were usually in or near the CBD, and so being close to the city became more desirable. The diversity of serviced-based jobs located in the CBD, together with the increasing number of women in the workforce and declining household sizes, all made the prospect of living in those smaller properties near the city more attractive to a larger cohort of potential buyers and renters. Gentrification is a change in the fortunes of a suburb as it is discovered by a higher income demographic, which slowly pushes out the lower-income residents. This usually occurs where working-class people, tenants and migrants move out as the land becomes too valuable and more affluent people move in renovating the old homes and improving the surrounding shops. These new, more affluent residents invest time and money improving their new neighbourhood, pushing up prices and rents. So how do you spot a suburb that is in the process of going through this metamorphosis? One unusual and unexpected property research strategy to help in this regard might be through look at the dogs walking around the neighbourhood. Yes, you read that correctly – I am suggesting that you look to the dog breeds for a sneaky clue! To make things clear: just because a suburb has cheap properties, that doesn’t mean it’s destined to become the next growth area. Some suburbs are inexpensive for a reason and won’t improve because of various socio-economic factors. There might be too much industry in the area, a lot of social or public housing or possibly an ongoing crime, gang or drug problem. Or maybe they are outlying suburbs with poor infrastructure, facilities or public transport, and little prospect for change. On the other hand, the type of suburb to look for is one that is relatively cheap today but has the potential for future capital growth. Some of the major drivers of capital growth are: Proximity to the CBD or the water. Adjoining a more expensive neighbourhood so it can benefit from the ripple effect. Desirable amenities such as good public transport, a large shopping centre, or within the catchment of a highly prized public school. Older attractive houses with character features, that are ready to be renovated. Areas where governments are investing in local infrastructure or beautification programs. Some of the steps you can take to find a suburb that is improving are to go for a drive and a walk. You’ll “know it when you see it” because you’ll find evidence that people with money are moving in. They will be spending large amounts of money renovating or extending their homes. There will be white (the new black) SUV’s parked in the driveways, rather than old Ford Falcons and Holden utes. The nature of the shops will be changing. The gyms are offering Pilates; the cafés sell cold press coffee; and the deli’s serve goat’s cheese pizza. Gentrifying suburbs will be in the inner and middle-ring suburbs of capital cities, where people of higher social status want to live (within around 40km of the CBD). As a property investor, if you can pick an area going through gentrification, one that’s shifting from dreary to in demand, you stand benefit from its accelerated growth. And the good news is that you don’t have to get your timing perfect – the gentrification process lasts a number of decades. 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 more here: The Power of Gentrification. How to use the cycle of the suburb to boost your investment returns Shownotes plus more here: How to use the cycle of the suburb to boost your property investment returns Some of our favourite quotes from the show: “While this may improve the suburb, gentrification is something else altogether: it is when more affluent people move into the area.” – Michael Yardney “If you want to own the type of property that’s going to outperform, the inner and the middle-ring suburbs are the place that you should be looking at, not where the average investor looks.” – Michael Yardney “Where are you going? Because you know what? Ten years from now, you’re surely going to arrive. But the question is, where?” – 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 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. They do the work, they turn up, they believe in themselves and sometimes, they even wear the same clothes. In today’s Build a Business not a Job Podcast I chat with Mark Creedon, founder of Business Accelerator Mastermind about a dozen techniques to triumph. Drive – know where you’re going Whether it is the drive to be the best in the world at a specific skill – spin bowling – or the passion to build the most user-friendly tech experience at Apple, successful people are focused on their end goal. Proven losers Once people have the ability to spring back from their losses, they are more able to take the risks and challenges life inevitably throws out. And once that mindset is in place, coupled with a focus on achievement, a loss can create a gain. Let others do their part There is a necessary time to allow others into the business and to allow them to do the job in their way. By allowing others to take the load and share their knowledge, the outcome can be greater than the sum of its parts. Avoid distractions – from their goal and in daily life Achieving a distraction-free state of flow is the best and most efficient way to work and get things done. Communicate. Without it, ‘It’s like winking at a girl in the dark’ Berkshire Hathaway founder Warren Buffet says communication skills are the most important traits for success. “If you can’t communicate, somebody said, it’s like winking at a girl in the dark,” he says. “Nothing happens.” Break the mold Successful people are often willing to stand out. Test cricketer Stuart McGill says spin legend Shane Warne “broke the mold” in cricket, not only with his spin action but also with his off-field antics. This pairing of performance and personality brought new followers to the game. Think on your feet The ability to be agile and take chances – even if they fail – is a key habit of the successful. Let’s do it People who thrive see the outcome. They determine a course of action and set their minds to achieve it.  Routine is a common element for those who succeed. Yes, yes, yes, no. Make the decision Successful people are decisive.  They may not always be right, but at least they make a decision, which allows for a speedier process and new possibilities. ‘Done is better than perfect’ This leads on from decisiveness. The philosophy is about achieving small steps, not about sacrificing quality. As there is no such thing as perfection – which is different for different people – many successes consider milestones and progress more important than a mythical ideal. ‘I get knocked down, but I get up again’ Resilience is considered the most important characteristic for success. People will inevitably get knocked down, criticised, rejected, or considered wrong, but with stamina and grit, many people overcome. Old-fashioned hard work, turning up every day, gets results. T-shirt and jeans Many successful people have systematized their life to strip back distractions.  By either planning ahead or making a routine of everyday tasks, they can reclaim time and energy to think about other outcome-focused enterprises. 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  Shownotes plus more here: 12 habits of highly successful people - Summer Series with Mark Creedon Some of our favourite quotes from the show: “I think one of the worst things that can happen is to get it right the first time.” – Michael Yardney “I think one of the traits of successful entrepreneurs, businesspeople, professionals, is that they get going knowing they don’t know it all, but they know enough to get going and understand that they’re going to learn the rest along the way.” – Michael Yardney “It’s just too hard to do it on your own.” – 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 many definitions of what it means to be rich. In today’s podcast, we’re going to discuss the #1 factor that makes poor people rich. Being rich is more a state of mind than a dollar amount, though – the rich can be poor and the poor can be rich. Being rich is really more about having what you want and being able to enjoy your wealth. You need a sense of balance, and true wealth isn’t about money or how many properties or shares you have. You need your health. You need time to enjoy and appreciate things. You need somebody to love and someone to love you. You’ve got to have the ability to give back to the community. You need spirituality. You need to be able to grow and learn. In these podcasts, I talk a lot about money, but money isn’t a zero-sum game. One person’s wealth can’t stop you from becoming wealthy as well. And in today’s episode, you’ll hear more about building the habits that can help you become wealthy. How can poor people become rich? If no poor person on the face of the earth ever rose from poverty to wealth, you might have a case that it’s impossible to become rich if you were born and raised poor. But, reality paints a very different picture. There are thousands of poor people every day who become rich. According to Forbes Magazine, just in America, there are approximately 1,700 working-class people a day who become millionaires. And, according to Tom Corley’s Rich Habits study, 41% of the 177 self-made millionaires he studied were born and raised in poverty. What was the #1 factor that helped them shake off the chains of poverty and become wealthy? Changing their daily habits. Changing your habits can be hard, especially if you don’t know how.  Here are some short-cuts to changing habits. Habit Merging When an old habit does not perceive a new habit as a threat, it does not wage war against the formation of the new habit. Law of Association Old habits can be triggered by the individuals you associate with. If you are trying to get rid of some old, bad habits you need to limit the time you spend associating with those individuals who act as a triggers for those bad habits and begin associating with individuals who possess the new good habits you are trying to adopt. You can find these new individuals in network groups, non-profit groups, trade groups or any group that is focused on pursuing similar goals. Changes in Your Environment It is much easier to abandon old habits and form new habits when your environment changes.   New home, new neighbors, new friends, new job, new colleagues, new cities, etc., all offer an opportunity to forge new habits. When your environment changes, you are forced to think your way through each day. Start Small It is far easier to change your habits if you start with small habits. Small habit change involves adding habits that require very little effort.   Examples include drinking more water during the day, taking vitamin supplements or listening to audiobooks while you commute to work. Schedule Your New Habits Sixty-seven percent of self-made millionaires in my study maintained a to-do list. To-do lists are a way of processing success into your life.   One of the tricks self-made millionaires use is to incorporate certain good daily habits onto their to-do list. Firewall Your Bad Habits One trick to habit change is to make it harder for you to engage in a bad habit by creating some type of firewall between you and the bad habit. Links and Resources: Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits  Join Michael Yardney and Tom Corley at Wealth Retreat 2020 – click here and register your interest Wondering what’s ahead for our property markets? Organize a time to speak with the team at Metropole by clicking here   Shownotes plus more here: The #1 Factor That Makes Poor People Rich – Summer Series with Tom Corley Some of our favourite quotes from the show: “At no other point in history have so many people escaped bitter poverty in such a short time as in China.” – Michael Yardney “Small changes give you momentum. They increase your confidence.” – Michael Yardney “I think the message is, if other people can do it, you can do 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.  

2020 didn’t exactly turn out the way I or anyone expected at the beginning of the year. Just as the bushfires were receding, we started to learn about this virus in China that eventually made its way to our shores. The pandemic caused massive health issues in Australia and around the world. Many countries, including ours, have had two waves of Coronavirus. It kept many of us confined to our homes, it shut down major parts of our economy, and many major economies have seen falls of the GDP of 10% to 20%. Australia did pretty well, comparatively, but we also saw a surge in our unemployment, and we saw inflation plunge. But we got through it much faster than most expected, and while we’re officially out of the recession, we’re not out of the woods just yet. So today, I’d like to discuss some lessons from last year and see how they’re going to affect our economy and property markets this year with leading commentator Pete Wargent. Some lessons from last year that will affect this year: The world economy is going to look very different moving forward. There’s going to be a bumpy and slow recovery in Europe and the United States There will be a lot more trade tensions in the years ahead The pandemic increased tensions in China There are a lot of challenges still to go in the U.S. They will probably have a bumpy recovery In Australia, the Reserve Bank has stated they won’t increase the cash rate for at least three years. The cash rate has a direct impact on mortgages, so this is important for property Established and first home buyers are back in the market Immigration has taken a hit, with mixed results Some Australians are returning home An oversupply of new apartments is less likely to be an issue Technology is being embraced faster and is making people more productive Debt is cheaper than it’s ever been Changes to stamp duty will impact our property markets Strategic investors were protected from the ups and downs of 2020 by: Owning the best assets Having financial buffers in places Setting up the right ownership structures Having insurance Obtaining holistic advice We discuss why people want to hear negative forecasts You need recessions and downturns to test resilience Predictions for 2021: 8% to 12% price increases for Sydney and Melbourne The increase will affect houses more than units Brisbane will see 6% to 10% or more Perth might experience a rebound as well Links and Resources: Metropole’s Strategic Property Plan – to help both beginning and experienced investors Pete Wargent Next Level Wealth Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: Here’s what the next 12 months have in store for our economy and property with Pete Wargent Some of our favourite quotes from the show: “I think one of the effects of COVID is that inflation around the world is going to remain weak.” – Michael Yardney “There isn’t the large construction pipeline with lots of new dwellings coming there, so I can’t see an oversupply looming in our big cities.” –  Michael Yardney “I slept much better because I actually had set myself up by expecting the worst, and being prepared for the worst, I guess, but looking forward to the best.” – 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 was recently asked to put together a list of simple rules that distilled my property investment philosophy, so in today’s episode, I’ll give you 9 simple property investment rules to go by. In my mindset moment, I’ll share 2 inspirational quotes that have helped me and that might be helpful for you as well. Then we’ll discuss some of the differences that separate rich people and poor people. Hopefully, by the end of the episode, you’ll be a little wiser when it comes to money, property, and success. 9 Property Investment Rules Become financially fluent – You need to understand how money, finance, the property market, and the economy work. Adopt a proven investment strategy – Real estate is a high-growth, low-yield investment, so it’s best to invest for capital growth. Not every property is investment property – you want properties that are going to out-perform the averages in capital growth. Demographics drive markets – Demographics are more important than short-term ups and downs when it comes to shaping our markets.rules-1752406_1920 Real estate investing is a game of finance with some properties thrown in the middle – property is a long-term game, so you’ll need financial buffers along the way. The economy and our property markets move in cycles – each boom sets up the next downturn, and each downturn sets the stage for the next boom Follow my 6 Stranded Strategic Approach and only buy a property – properties should: Appeal to owner occupiers Be priced below intrinsic value Have a high land to asset ratio Be located in an area that continually outperforms the averages Have a twist that adds value Come with the potential to manufacture capital growth Don’t focus on bargains — Properties that no one else wants today will probably be the type of property that no one else will want in 5 years’ time. Allow for an X-factor – unforeseen events can be positive or negative, but they’re sure to happen. 10 major differences between rich and poor people If you’ve been listening to my podcast you’d realise that I believe wealth is a choice that we must all make.  Wealth is a mindset Bill Gates once said, “It’s not your fault if you were born poor, but it’s your fault if you die poor.” In Australia, there’s no reason why you should live in poverty.  Wealth is waiting for you, but you have to make up your mind if you want it in your life. For years I studied the rich then I became one of them, and for the last decade I’ve mentored over 2,000 people to become rich Here are 10 of the major differences I’ve realised that separate rich and poor people: 1a. Poor people are skeptical. I distinctly remember a nephew of mine saying, “Those plumbers are a rip-off! They’ll charge for things they haven’t done. He thought that everyone unjustly wanted his money and that everyone is out there to get him. Do you know someone like that? 1b. Rich people are trusting. Rich people have the tendency to trust those they meet (within reason) and give others the opportunity to be themselves. 2a. Poor people find fault. People who are poor are always looking for the problems instead of the solutions. They end up blaming their environment, circumstances, jobs, weather, government and will make an extensive list of excuses as to why they cannot be successful. 2b. Rich people find success. Rich people understand that everything happens for a reason. Rather than letting life happen to them, they take direct action and make big things happen. They put aside all the excuses and eradicate their blame lists because they have to do what must be done. 3a. Poor people make assumptions. When it comes to knowing the truth, poor people often make assumptions. If they want to reach out to a someone, they might say, “They probably don’t have time to talk to me.” Instead of checking the facts or asking questions, they never make a true attempt when it comes to getting what they want. 3b. Rich people ask questions. Many rich people ask the question, “What if?” For instance, “What if I wrote an email to that person and he or she answers?” If you begin to ask questions, you will save yourself a lot of hassle. The power is in the hands of those who ask the right questions. Then don’t answer your questions, question your answers. 4a. Poor people say, ‘they’ and ‘them.’ Have you noticed how the people at the checkout at the supermarket say, “They never have enough cashiers. I don’t know what’s wrong with them.” Obviously, these people don’t take any ownership and responsibility for their job. They certainly separate themselves from the job that was paying her. 4b. Rich people say, ‘we.’ At one of my favourite restaurants, the server said, “We take great delight in cooking our steaks in real fire.” Her sense of pride and ownership stimulated me, which allowed me to give her an honourable tip. Surely, you will be rich when you invest more into what you believe in. 5a. Poor people want the cheapest way. Have you noticed how poor people tend to look for the cheapest items, bargains, free advice. Unfortunately, cheap is always cheap. 5b. Rich people want the best way. Rich people will go the extra mile to find quality – they recognise that price is what you pay and value is what you get. They don’t limit themselves to price and often seek service while they shop. They’re prepared to pay for mentors, coaches, and advisors 6a. Poor people think money is more important than time. Millions of people all over the world are trading their precious time for money. You can always get $500 back, but you can’t get 50 hours again. Nonetheless, the majority of people trade time for money and never realize their true potential because of it. 6b. Rich people know that time is more important than money. Rich people never trade time for money. Moreover, they seek fulfilling experiences that dramatically alter their lives. Their careers are more focused on doing what they love and helping others, instead of merely clocking in for a meagre pay cheque. 7a. Poor people compete. When a poor person sees an opportunity, they find out how others are doing it and copy them. Most often, they never consider another way of doing it. Instead, they settle in the belief that doing what others are doing is the best thing they can do for themselves. 7b. Rich people create. On the other hand, the rich like to think outside the box and find new opportunities 8a. Poor people complain, condemn, and criticise. Most poor people have learned how to be poor from their parents. Their family members have conditioned them to believe that everything is “wrong” instead of right. If you’ve ever heard someone ask, “What’s wrong?” you’ll know what I mean. 8b. Rich people praise and enjoy their blessings. Rich people know that they have many privileges, and they don’t take it for granted. Because of their appreciation of gifts, love, and circumstances, they are able to generate more. 9a. Poor people seek amateur advice. They often listen to the opinions of others and seek approval from acquaintances. They believe almost everything they hear without questioning authority. They accept opinions as facts and prohibit themselves from doing research once satisfied with an answer. 9b. Rich people seek expert advice. Those who are rich have learned to think for themselves. If they cannot figure out something, they seek expert advice. Usually, they pay for the advice and are given a wide variety of options. They learn the experts only make suggestions, which means that they aren’t particularly confined to a specific action. 10a. Poor people have big television sets. Poor people use their free time to avoid the art of thinking (which is the most challenging task) and zone out to what many have conformed to believe is “entertainment.” 10b. Rich people have big libraries. Wealthy people are educated and read a lot of books. They use their knowledge in a way that benefits them. Instead of drifting off in random activities, they seek to get within their minds to understand themselves, others, and the world in which they live. Bottom line: To get a true perspective on how to become rich, you must study rich people. After all, you become what you study. If you’re currently surrounded by people who aren’t yet rich, just do the opposite of what they do. Soon enough, you’ll be able to reach your financial dreams! Links and Resources: Michael YardneyMetropole Property StrategistsRich Habits Poor HabitsMichael Yardney’s Mentorship Program Shownotes plus more here: 9 Property Investment Rules You Must Understand 10 Major Differences Between The Rich and The Poor – Summer Series Some of our favourite quotes from the show: “It’s really critical to understand if you’re being impartial advice, or if you’re being taken advantage of by the many vested interests out there after your money.” – Michael Yardney “Trying to make something perfect actually prevents us from making it just good.” – Michael Yardney “What if what you know is only one of the many possibilities, and there are some better ones, other ones, different ones? What if what you know could be further enhanced by what other people know? What if what you already know is actually wrong?” – 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.