Property Investment, Success & Money | The Michael Yardney Podcast

While many markets suffered from the economic impact of COVID-19, Brisbane's property values remained resilient last year, and now almost all property analysts are suggesting that Brisbane's housing markets will perform strongly in 2021. On today's show, I chat with Brett Warren, national director of Metropole Property Strategist based in Brisbane to understand what's really going on and why this time is different. In fact, digging deeper into the statistics of property growth over the last few years, some properties have far outperformed others and freestanding Brisbane houses with 5-7 km of the CBD or in good school catchment zones have grown in value strongly. Brisbane has really been a two-tier market and I know that many of the properties purchased for clients of Metropole's Brisbane office showed double-digit capital growth over the property last 12 months. While Melbourne and Sydney are highly regarded as Australia's two world-class capital cities, Brisbane is what many class as a "New World City", and on today's podcast we will explain what that means and why those investors who take advantage of the changing trends in Brisbane will benefit significantly over the next few years, so welcome to today show Some of the things we discussed Metropole has had an office in Brisbane for almost 2 decades and in that time I've seen the city morph into a new world city. Australia is very different from other countries with regards to the way we live. 86% of our 25 million population live in urban areas and 50% of these Australians live in either Sydney, Melbourne, or Brisbane. While overall, the Brisbane property market has underperformed Melbourne and Sydney over the last decade there are different segments of the market that performed very strongly and we dig into this as we have a chat. Australia has two global cities – Sydney and Melbourne - they are recognized around the world – Sydney for the Opera House, Melbourne for sport and art. Now Brisbane is being recognized as a "New World City." Brisbane punches above its weight - It's only the 172nd biggest city in the world, but it's the 80th most globally connected. It's in the top 30 percent of the world's fastest-growing cities, it's got world-class direct foreign investment, a competitive labour market, a highly lifestyle model and it's an international student city. A New World City must also have some "globally oriented" business clusters. In Brisbane's case, it's higher education, it's the digital economy and it's commodities and professional services of various kinds but it's also travel and tourism and conventions." Brisbane has been building its infrastructure and economy and is now attracting population growth. Also, Brisbane has less traffic congestion than Australia's 2 big global cities. What is the Brisbane property market? Let's be clear what we're talking about - many outsiders see Brisbane as stretching from the Sunshine Coast in the north to the New South Wales border in the south, 200 km long. In one sense they are right because the Gold Coast and Sunshine Coast are now closely interconnected with Brisbane and workers will commute from these locations on their jobs in Brisbane. In fact, that's one of the reasons why property values have not grown as strongly over the last few decades - because SE Queensland has had abundant supply of properties, however, we're not recommending investing just anywhere in this large parcel of real estate. We only focus on properties in prime locations within 5 to 7 km of the Brisbane CBD. Brisbane has underperformed Brisbane's capital growth has been from the top down. There has been strong capital growth in the sought after, more affluent, more established inner suburbs within 5 to 7 km of Brisbane, but there has been minimal capital growth in many of the outer suburbs where there is less affluence and plenty of supply, and in fact abundant new supply. For example, there are a number of commentators out there suggesting one should be investing in the Logan district or Ipswich, and while there has been substantial physical growth there – lots of new estates – there has been minimal if any capital growth. Brisbane's demographics are changing For a number of decades, Brisbane suffered a "brain drain" where skilled, educated young people finished university and moved to Sydney or Melbourne where the more highly paid knowledge jobs were. This is no longer the case, and a lot of millennials now are keen to stay in Brisbane as it is now a fun place to live. So, the big shift is that people no longer want to leave Brisbane, they want to come to Brisbane. This was clearly seen through the challenges Australia experienced in 2020. Millennials will shape the Brisbane housing markets. Demographics will always drive our property markets and because of their sheer size and stage in the life cycle, no generation will shape Australia more during the 2020s than millennials. They are now at the stage of their life where the earnings are increasing, and they will spend these on houses and lifestyle and their growing family. However, this will create a challenge for all those high-rise tower block apartment blocks that were built over the last decade or so as millennials leave their centrally located one or two-bedroom apartments and migrate to the suburbs. As millennials move into the suburbs, who will move into the inner-city apartments left behind? The problem is that the Zs, who should take their place is a much smaller generation than the millennials and, with lower migration intake because of the coronavirus during the next few years, inner-city properties will stagnate or fall in value. Brisbane has multiple pillars sustaining its economy Tourism Agriculture – the food bowl of the world Mining – some very big mineral deposits Construction As a New World City, Brisbane has a lot to offer and it's comparatively cheap to move there and live there. That's why it's attracting people. Some things we need to understand about the Brisbane property market: One City Council One of the major benefits of investing in Brisbane is the fact that you are bound by only one city council. This has been efficient and proactive. Affordability The price gap between our biggest capitals and Brisbane are now at an all-time high. This includes quality properties in quality locations. Lifestyle People are getting excited about all of the new changes that are happening in the area. Proximity to Asia This doesn't necessarily mean China. It's important to understand that there is more to Asia than China. International students and other positives come from these relationships. Undersupplied There's huge demand and not enough supply for the good A-grade properties. Links and Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists 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: 5 Good Reasons to Invest in Brisbane with Brett Warren Some of our favourite quotes from the show: "I believe Brisbane's what we call a new world city." – Michael Yardney "We know that COVID hit Australians differently. Not just health-wise, where some age groups, some demographics suffered more than others. Similarly, some demographics suffered more financially, economically than others." – Michael Yardney "It's the investors who create the booms and busts when they get exuberant during the booms and get a bit down when difficult times occur." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

With interest rates near zero, Australia's economy rebounding, and pumped with massive amounts of stimulus, and the coronavirus all but eradicated from our shores, our property markets are looking healthy and starting the year off on a strong footing. The stats show that after the nation went into lockdown last year, national property rates fell overall a cumulative 2.2 percent. And of course, this was led by Melbourne and Sydney that were most affected by the lockdowns. But of course, this was nothing like the predicted calamitous falls. Now on the back of continuing increase in confidence, strong growth low mortgage rates, and the emergence of a vaccine plan, many are projecting house price growth in 2021. In fact, many are projecting double digit growth this year. Are they right? That's what I discuss with Dr. Andrew Wilson, along with lessons from last year and housing market forecasts for 2021. Then, as always, I'll share my mindset message with you. Lessons learned from 2020: It was really the physical restraints to property transactions that impacted the market, rather than a change to our supply and demand. In other words, the property market fundamentals were and are strong Be really careful whose forecasts you listen to. Property investors who listened to catastrophic predictions missed out on good opportunities There isn't just one Australian property market. Markets are segmented by geographic locations as well as by factors like the type of dwelling and the price. Property investment is really a game of finance with some houses thrown in the middle What's occurring now: The unemployment rate is falling The economy is recovering well due to falling unemployment and even new jobs There's been a huge surge in housing loan approvals – 24.4% above pre-pandemic levels Consumer optimism is trending upward First-time home buyers are in the mix There is a lower number of listings in the market than usual The fiscal cliff is not a real cliff, more like a step However, the rental market still has some challenges 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 Guest: Dr Andrew Wilson – MYHousingMarket.com.au Shownotes plus more here: Here's why we're going to have a ripper year in property + Housing Market Forecasts for 2021 with Dr. Andrew Wilson Some of our favourite quotes from the show: "You know what they say about opinions – there's like bellybuttons, everyone's got one, but they're not very useful." – Michael Yardney "The property market moves in a cycle and after every boom, there's a downturn or a slump phase, and then it actually starts to pick up again slowly, then eventually another boom occurs." – Michael Yardney "It may sound like a cliché, but maybe it's time to play more and work less." – 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

Would you like Life Time Wealth? Well…today we'll explain what that means and how you could achieve it as I replay a chat I had with my good friends Louise Bedford and Chris Tate from The Trading Game and we discuss the concept of true wealth. This is the last of the summer series of podcasts where I've been running three shows a week rather than two in January, but since this was the second most downloaded listen to podcast I've ever recorded I thought it important to let you listen to it again for the first time or again if you've been a subscriber for some years. The original recording of the show came about when Louise Bedford, Chris Tate and I were sitting around chatting about Wealth Retreat 3 or 4 years ago and we were discussing the concept of creating lifetime wealth, what true wealth really is, and some of the concepts we wanted to share with attendees at WR retreat. And the conversation was so good, it was a bit philosophical, that we actually pulled out a phone, I think it's Louisa's phone now and we just recorded an episode of the podcast for her podcast and mine, because we were talking about things we only tend to talk about between ourselves and we wanted to share with other people. For example I talked a bit about my first investment property, almost 50 years ago. We talked about how being truly wealthy is a lot more than just how much money you have or how many properties you have. We talked about the concept of creating lifetime wealth and leaving a legacy and we discussed how we are the mentors for our children and how if you want to leave a legacy you have to be important what do you pass on to your children, not moneywise – it's not what you leave your children but what do you live in your children. We talked a lot about the impostor syndrome, something that we speak for specialises in and we discussed about success, the miss match in some couples – something I come across very frequently were very different to our life partners with regards to how we think about money and success. There were so many fascinating concepts we talked about that I really believe you'll enjoy today show, but be warned, it's a little bit longer than normal and the sound quality wasn't as good as normal because, as I said we recorded it on the fly – we were just in the right zone talking about this content so I thought it was really important to grab the information to couple of years ago and it's just as relevant today, so welcome to this episode of the Michael Yardney podcast.* How to Obtain Lifetime Wealth Michael shares how he bought his first investment property over 40 years ago. He's made plenty of mistakes, but has still built a substantial property portfolio. He also gives back. To be truly wealthy you need much more than just money. You need money plus family, friends, health, spirituality, growth, and contribution. Chris shares his background. It is similar to Michael's but replace the word property with shares. How children absorb things without being taught directly. Legacy and leaving a ripple or something outside of you that carries on when you are gone. We learned about money, wealth, and riches from our parents and culture. What is your financial thermostat set for? You'll be surprised – it's set for what you have already got. Your thermostat won't change until you change and throw away the blame. The imposter syndrome or undeserved success. Not feeling worthy and self-sabotaging. Self-awareness deserving your success. How people believe the tool has something to do with their success, when it is actually the software that makes a success. How people who's views are mismatched may not be a match as a couple. The disconnect can produce tension and tear relationships apart. Couple's need to talk about their views about money. Partners need to be compatible on a whole host of issues. In the old day's people passed their trades on. Now property or shares can be passed to your kids, but it is not what you leave your kids it is what you leave in your kids. How we learn about money from our parents whether it is spoken or unspoken. Replacing non-productive beliefs with empowering beliefs. Teaching kids about training by loaning them money to trade and letting them keep half of the profits. How IQ and socioeconomic status can be linked. The importance of mentorship and getting together with other entrepreneurs. Find like minded people and the isolation disappears. How attending Wealth Retreat can help change your mindset and money habits. 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 Join us at Wealth Retreat in June 2021 The Trading Game Chris Tate Louise Bedford Shownotes plus more here: How to attain lifetime wealth, with Louise Bedford and Chris Tate – Summer Series Our favourite show quotes: "Wealth isn't about how much money you have, but what you're left with if you lost everything and had to rebuild it." Michael Yardney "You either have to pay the world, the market, or your mentors when learning about investing." Michael Yardney "If you took all of the money in the world and divided it equally it would all end up in the same pockets again." Michael Yardney

During his five years studying the rich and the poor Tom Corley identified 10 hard truths about the wealth gap that no politician or member of the mainstream media would dare reveal. And as I share them with you today, you'll probably get a few surprises. These aren't just our thoughts. In his 5year study, Tom asked 361 rich and poor people 144 questions each. That's 51,984 questions. From the data he gathered, he was able to identify 344 differences between the way the rich and the poor conducted their lives. Over one hundred million individuals have read something about my research, which has been cited, quoted, referenced, commended and criticized in 25 countries around the world. As a result, Tom has made a lot of friends and a lot of enemies. And he's about to make some more with this podcast. His research opened my eyes. One of the many benefits of having done this research is that he became privy to the inner workings of the lives of the rich and the poor. For five years he was that fly on the wall. And this fly has identified 10 hard truths about the wealth gap which we're going to discuss today in an episode which 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 wealth 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 10 Hard Truths About the Wealth Gap Bad Parents – The poor have parents who simply do not do their job. Drugs, alcohol, gambling and a host of other parent character flaws pull the rug out from underneath their kids. Broken Families – The poor are raised in broken families. Divorce, incarceration, abandonment are common denominators among the poor that fracture the family unit. No Work Ethic – The poor are bad employees who have a bad work ethic. As a result, they find themselves regularly unemployed. Financial Negligence – The poor spend their money as quickly as it comes. They don't save. They don't invest. They are financially illiterate. Poverty Ideology – The poor believe they will be poor their entire lives. They see poverty as a fact of life. They are without hope and thus, without motivation to escape their poverty. Bad Health – The poor do not exercise regularly. They eat and drink too much junk food. They frequent fast-food restaurants. They take drugs and drink too much alcohol in order to numb their pain. They are overweight and out of shape. Uneducated – The poor do not embrace education. It's not part of their culture. They do not self-educate themselves. They do not read. They do not engage in self-improvement. Bad Habits – The poor have many bad habits and few good habits. Entitlement Ideology – The poor believe they are entitled to things others have to work very hard for. Victim Ideology – The poor believe others hold them back in life. They see themselves as victims. They look to the government to take the wealth of those who are producing and working hard in society and redistribute it to poor people. I now know that rich people, particularly the self-made rich, are the good people. They were raised by good parents, parents who cared and who mentored them to succeed. Poor people, conversely, were raised by bad parents. Some were raised in broken homes, some were raised with little to no work ethic, some were raised to be ignorant of finances, some were raised with a poverty mindset, some were raised to disregard their health, some were raised to shun education, some were raised with bad habits, some were raised to believe they should be given free stuff and some were raised to believe the world was aligned against them. We don't have a wealth gap in this country. We have a parent gap. If, as a society, we truly want to end poverty, we have to first acknowledge the cause of poverty. Parents. Parents cause poverty. Parents are to blame. As a great man once said, "the truth shall set you free." Links and Resources: Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits Shownotes plus more here: 10 hard truths about the Wealth Gap with Tom Corley – Summer Series Some of our favourite quotes from the show: "We know that children develop habits from things they see, things they experience, things they hear, and their mentors as a child are really their parents." – Michael Yardney "Bad mentoring from parents is more likely to – but not certainly – going to give you a disadvantage in life." – Michael Yardney "It's probably worthwhile reminding our listeners that we're all walking around with some good habits, some bad habits, some rich habits, some poor habits, some habits that are empowering us, and some habits and beliefs that are disempowering us." – 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.

How wealthy are you? I guess that depends upon how you define wealth. In today's podcast, I chat with demographer and social commentator Mark McCrindle about wealth distribution in Australia. We talk about what's happened to the wealth gap between the rich and the average Australian, and we answer the question "are we better off financially than our parents were?" And of course, I'm also going to share my regular mindset message with you. So at the end of today's show, you'll have a better understanding of where you sit on the wealth ladder and what you can do about this. My conversation with Mark McCrindle: The rich keep getting richer, or so we keep hearing. But is that true? And last year, the coronavirus has seemed to affect certain demographics more than others. How has that affected the wealth distribution in Australia? With higher wealth and income levels than ever are we any better off? It's mixed. The cost of living is rising, costs of property and rentals are rising as well. So we expect income to rise because costs of living are rising. It's not as though we're rolling in money, but on average we're paying our bills. Two-thirds of Australian households carry debt, and a quarter of them have debt that's three times their household, so we're still carrying a lot of debt. But Australians have been moving forward with both income and wealth. How is wealth distributed amongst the different generations? It's mainly held by the older generations. It's largely in the household home. About one third is in financial assets such as shares and superannuation Are we better or worse off than our parents were? In so many ways, the younger generation is better off. It is getting more expenses to own a house. But the costs of things like travel, transport, and daily commodities are less expensive. Plus, the younger generations are investing more in their future earnings with education. Over time, they will start to catch up in terms of wealth. The younger generations will live longer and work longer, so they have a broader spread of wealth accumulation years. They also have the support of parents and higher earnings as they begin. What's happening to the gap between the rich and the poor? One of the best measures of that is the Gini coefficient. It highlights that inequality is getting less. How did COVID affect wealth? In many ways, it added to the equality of Australia. The government stepped in with Jobkeeper and Jobseeker and intervened to level the playing decks. Because of the uncertainty, many Australians also paid down debt and saved more. 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 Mark McCrindle's article on Australia's Income & Wealth Distribution Find out more about McCrindle Demographers Shownotes plus more here: What's happening to the wealth gap and are we better off financially than our parents were? With Mark McCrindle Some of our favourite quotes from the show: "My grandparents' generation were more workers and it was rare for them to go to university." –Michael Yardney "I think one of the things you've got to remember is that in Australia, our poor are still richer than the rich in many other countries." – Michael Yardney "Timidity is not a virtue, it's an illness." –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'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