Property Investment, Success & Money | The Michael Yardney Podcast

Being a property investor is simple, isn’t it? Just buy a property, then sit back, collect the rents, and fund your retirement.  If only it was as easy as that.  Granted, investing in property is a simple concept, but the execution is a different story. I’ve often said property investment is simple, but not easy.  The rules are simple if you know them, but the execution is more complicated.  And that’s what we’re going to talk about in today’s episode. Initially, I’m going to give you six tips to help you get on top of the property ladder. Then I’ll talk with Brett Warren about tips that he would have liked to know when he was first investing. Then, in my last segment, I’ll share some money tips.  6 strategies to get to the top of the property ladder Invest in your knowledge before you start investing in bricks and mortar Learn from others who’ve not only achieved what you want to achieve, but who’ve maintained their wealth over a long period of time. Surround yourself with like-minded people and get a mentor who will not only inspire and challenge you, but can also give you some perspective. Marry your investment plans with your investment capital Remember that all booms come to an end and, like in the past, this new property cycle will peak. So, while enjoying the current phase, make sure you’re financially prepared for the market as it changes. Use your portfolio to reduce your risk Strategic investors look forward to the best of times but protect their portfolios for the tough times that will inevitably come.   Rather than gearing to the max, they take a more prudent approach by building an emergency buffer. They also own the type of property that will be in continuous strong demand by owner-occupiers. Do the due diligence before you do the deal Sophisticated investors have an investment plan that they adhere to and carefully evaluate any potential investment opportunity in light of their long-term goals. They know that this makes their investment decisions less emotional and their results are more consistent and predictable. Keep your sights set on your goals While most investors buy a property and hold it for the long term, strategic investors regularly review their investment portfolio’s performance in light of their long-term goals. Questions to ask when reviewing your portfolio’s performance: Is this property performing to my expectations? Is this property likely to outperform the market? If this property were for sale today would I buy it again? Does this property still fit in with my overall plan? Treat your property like a business and evaluate your assets dispassionately and take appropriate action. Remember that in real estate, less is often more Concentrate on getting the best deals for your investment goals, not the most deals. When it comes down to it, capital growth is key in building wealth through real estate and properties that outperform the long-term averages always come at a price.  Lessons and Success Tips with Brett Warren Location does 80% of the heavy lifting Successful investors look for locations that have a proven track record of strong capital growth which will outperform over the longer term because of their demographics. Choose capital growth over cash flow. Most of your assets when you retire will be your tax free capital growth – the increase in value of your home and your investment properties – not money you have saved or rent that you’ve collected or superannuation you’ve put away. Success comes from a series of small things. Take every opportunity you can to better yourself or your circumstances, change your habits to be more productive and work hard towards a long term goal that you are committed too. Successful people have multiple streams of income. You cannot save your way to wealth and success. But by investing the income you save in high growth assets, diversifying your portfolio and adding multiple streams of income from property, shares and business you can fast track your wealth and are not solely reliant of your salary. 7 Money Tips If you are born poor it’s not your fault, but if you die poor it’s your mistake You have to take responsibility for your financial future. You have to become financially literate. Becoming wealthy is a long journey and it’s not easy. Don’t follow the herd Successful investors know that to get to the top of the property ladder, they need to overcome the fears that hold most people back from ever stepping foot on the first rung, or of not waiting for the perfect time or the perfect investment. And they also understand the importance of, wait for it, going against the crowd! You should know how many months you have left in your wealth window Your “wealth window” is the time from now until when you stop receiving an earned income. How much are you going to earn in that time? Your financial future will depend on the balance between enjoying your money now and planning for then. Practice delayed gratification Successful people possess higher patience and an aptitude to postpone the enjoyment of their work. Learning to delay gratification rather than seeking immediate satisfaction is essential for success, particularly when it comes to things like investing, business and making money. Don’t think you can ever make money by trading Whether it’s property, financial commodities, shares etc.; trading is really a form of gambling. Instead stick to the wealth creation strategies that have always worked; either investing in income earning real estate, a business or a share portfolio. Avoid Credit Card Debt Remember the balance on your credit card isn’t your money, it’s the bank’s and they’ll charge you for the privilege of using it. Insure yourself Insure yourself against bad surprises such as cancer, a heart attack, a car accident or death. If you don’t insure yourself when you don’t need it, you will find yourself uninsurable when you do need it. Links and Resources:  Michael Yardney Brett Warren 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: 6 Tips to get on top of the property ladder, 7 Money Tips & Brett Warren shares some lessons Some of our favourite quotes from the show: “Remember to prepare for the worst while hoping for the best. In other words, maximize your upside while covering your downside and you’re going to remain in control of your destiny.” – Michael Yardney “You’ll find that the majority of what you own when you slow down, when you retire isn’t money you’ve saved, it’s not rent that you’ve earned, it’s not superannuation you’ve put away, it’s capital growth.” –Michael Yardney “But if you want to achieve financial excellence, one of the best things you can do is not follow the herd.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What makes an investment-grade property?  What makes it different from all of the other properties?  What’s the right strategy for this stage of the property cycle?  What’s the endgame that property investors should be considering at the moment, considering how coronavirus has disrupted our property cycle?  That’s what we’re going to talk about today. I’m going to share with you my new endgame because my living off equity strategy that has stood the test of time for many years is not going to work for most investors in the current market.  At the end of this episode, you’ll be a more informed investor, and you’ll have a strategy to work toward to help build your own financial independence. What makes a good investment-grade property? Not all properties make good investments. In my mind, only about 4% of properties on the market make good investments. What makes a property a good investment? What makes a good investment generally? Strong, stable rates of capital appreciation Steady cash flow Liquidity The element of easy management A good hedge against inflation Tax benefits An investment doesn’t have to offer all of those or all in equal proportions, but those are characteristics of a good investment. How do you make money out of property? Rental income Capital growth Accelerated or forced growth Tax benefits 5 Stages of Your Investment Journey Stage 1: Education – learning what property investment is all about Stage 2: Saving – spend less than you earn and trap the excess cash flow in a savings account to build up a deposit so you can invest Stage 3: Asset accumulation – it will take two or three property cycles to build up enough of an asset base of income-producing properties to move to the next stage Stage 4: Lower your loan-to-value ratio  Stage 5: Live off the cash flow of your property portfolio 6-Stranded Strategic Approach to Buying Property Buy a property that has appeal to owner-occupiers -- Not because you plan to sell the property, but because owner-occupiers will buy similar properties and that pushes up local real estate values.  Buy property below its intrinsic value – avoid new and off the plan properties, which come at a premium price. Look for a high land to asset ratio – that doesn’t have to mean a big block of land, but one where the land component makes up a significant part of the asset value. Buy property in an area that has a long history of strong capital growth and that will continue to outperform the averages. Look for a property with a twist – something unique, or special, or different about the property. Buy a property where you can manufacture capital growth through refurbishment, renovations, or redevelopment. Links and Resources:  Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: The most effective property strategy for now and an update on my living off equity strategy Some of our favourite quotes from the show: “Too many investors don’t recognize, though, that property investment is a game of finance with some houses thrown in the middle.” – Michael Yardney “Bottom line is, cash flow keeps you in the game, but it’s really capital growth that gets you out of the rat race.” – Michael Yardney “The rich don’t like to commute.” – 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 important is assessing demographics in building your property portfolio or planning your business or personal ventures?  If you don’t pay attention you could be missing the key to building long-term wealth in a way that minimizes your risks.  In today’s episode of Michael Yardney podcast, I chat with Simon Kuestenmacher, and we’re going to talk about 7 macro / big picture demographic trends.  So, at the end of the episode, you’ll have a better big picture macro view of what the demographic trends in Australia are.  Highlights from my conversation with Simon: Over half of Australia’s wealth is in housing, so the housing market underpins Australia’s wealth The property market itself isn’t in trouble However, the Australian middle class has been hollowed out, and the big challenge is getting low-paid workers on the path to homeownership We may move into the right direction because of corona-inspired infrastructure programs that create middle-skill jobs Australia is the most intensely concentrated population on the planet This is because of the kinds of jobs that Australia creates A large percentage of Australians are born overseas The influx of international students to Australia has created a student boom One of six international students will become permanent residents Australia is more generationally diverse than ever before Australia may be the location of choice for companies who want to set up Asia-Pacific centers The need to build higher-quality buildings that last longer Changes in where people want to live and the kinds of accommodation they need Mixed development in the inner cities The makeup of the workforce Baby boomers are staying in the workforce longer Close to half of the workforce is Gen Y, so it’s important to understand them Links and Resources:  Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group Simon’s YouTube Channel  In these challenging time why not get the team at Metropole to build you a personalised   Strategic Property Plan – this will help both beginning and experienced investors. Join us at Wealth Retreat 2020 – click here and register your interest Shownotes plus more here: 7 Australian demographic trends investors and business people must understand Some of our favourite quotes from the show: “I think one of the great things about our cities over the last couple of decades is the vibrancy of being in the inner city.” –Michael Yardney “There’s no doubt that the bulk of these generations do think very very similarly, and to be a good employer or to sell to them, to be a good businessperson, you’ve really got to understand what drives, what motivates them.” –Michael Yardney “Letting go of attachments makes your life richer, as you create space for new experiences to come.” –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

As adults we often forget that at one point in our life we saw the world and the people around us in a much different light— we saw the world through a child’s eyes. As we grow up and mature, we allow life and rules to restrict some of the greatest instincts we had as children.  Instead of never taking no for an answer, waiting for permission, or even embracing our wildest dreams, we fall into a strict regimen we believe will keep us safe and drive us to success.  However sometimes it’s important to remember that to truly be effective and productive leaders, our old “childish antics” can actually do us some good. In fact, it turns out the children can teach us a lot about being successful in business and in life. In today’s episode, Mark Creedon and I discuss ten things we each learned from our grandchildren that can help us in business. Here are ten things Mark learned from a chat with one of his grandchildren, which I think can help us all in business, success and life in general: The importance of budgeting Iziah told me if he had $100 he would save half and spend half. He wanted to save half for the future and to have some money put away but he also wanted to enjoy his newfound 'wealth' a little. Follow your passion I asked him what he wanted to do when he grew up. "Be a vet" he replied. Because he wanted to help animals, he loves animals and he knows that what vets do. Understanding why you do what you do is a fundamental concept we all should get our head around. It is important to play I asked him what grown-ups should do other than work. "Play" was his response. Recent research from Psychiatrists from John Hopkins University have compared play to oxygen. Taking time to play feeds dopamine into a whole bunch of areas of the brain.  Ask "Why" a lot Sometimes as adults we stop asking questions. Once we stop asking questions, stop enquiring we can fall into resignation. The end result of that is that we can miss opportunities because we didn't scratch the surface and look at why something is happening or why it might. Of course, the other issue about us stopping asking questions is we may also miss the opportunity to, learn from mistakes and so we may very well keep making them. Family is more important than money The point is that there has to be a bigger goal than just money. Money is a great tool and life can be pretty tough without it, but we have to know why we want that money. Family is more than just your household When I asked Iziah who his family was it was much more than just his Mum, Dad, and brother. he cited his aunts and uncles, grandparents, cousins. The point is to consider who your family is, keep it as wide as possible and make sure you are looking after and keeping connected with all of your 'family'. Don't keep secrets Families don't keep secrets from each other, Iziah told me. There is a great lesson here. By being brutally honest with our business family, we are more likely to have them join us wholeheartedly on the journey. Schedule time for fun We mentioned before about the importance of play but life can get in the way. Iziah has an arrangement with his Mum and dad that schedules time in the day for uninterrupted play. That way he knows it will happen and Mum and Dad know nothing will get in the way. It is like anything in life, business. If all we do is put it on a 'to do' list there is a good chance it will get missed or overtaken by other priorities. Schedule it in your calendar and treat it the same as any important appointment. Always Learn My grandson goes to school, he reads, he loves learning. That is something we should never stop doing. Get back up and believe in yourself I asked Iziah what happens when he falls off his bike. "I get up, get Mum and Dad to give me a hug and get back on the bike," he told me. We all know that what counts is not how many times we fall but how many times we get back up. the other thing he shared was how he deals with climbing high on the monkey bars without fearing a fall. "Think positively and believe in myself " was the answer. Couldn't we all use that little gem? Michael shares lessons from his grandchildren Kids have no fear In business, so many of us are stuck in the wrong job just because we are so afraid of the unknown.  You don't need to know it all before you take a step towards what you want to do. Of course, kids need to be developmentally ready for certain tasks, but if they are interested in, and want something, they will go for it. And, so should we – whether it's big changes, or small, fear of failure should not stop us from new experiences.  Kids are driven by curiosity We learn by being curious.  Kids, especially, are so curious it drives them to learn and discover all new things every day.  In our professional and personal lives, it's common that we settle in our ways, doing the same thing in the same way just because we've grown comfortable, losing our sense of curiosity.  Curiosity is what drives new experiences and takes us to new places, constantly keeping us on the move towards our future plans and goals, just like it is making our kids grow into the amazing people they are. Kids don't take themselves too seriously With the little experience, skills, and knowledge in this world, you never see kids worry about things.  They laugh and enjoy the little moments of everyday life, without losing their sense of humor.  Kids show emotions and communicate Happy, or miserable, you will know about your kids' emotions even before they are able to communicate verbally.  We often forget to communicate and show emotions when we are stuck in our everyday life.  This doesn't mean we should throw a tantrum every time a frustrating situation arises, but it's more about showing empathy and communicating regularly and properly with friends and stakeholders.  Kids don't stop learning Kids learn every moment of the day, every day. They don't look at learning as we do. Instead, they learn through play and interaction with other kids. They don't feel intimidated by older kids, they are inspired by them and want to know and do what they do.  As with most things in life, all things new take time to learn. Everything we do, successfully or unsuccessfully, is about learning. So instead of worrying about things, it makes so much more sense to look at it as a learning experience and make the most out of it. 6 Kids also need breaks to re-energize and so do we.  It's so easy to forget about ourselves and about taking breaks, so next time you are juggling lots of things as a working mom, take a step back and enjoy some time on your own. Whatever it is that makes you relax, make sure you do that at least once a day. 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: 10 Important Lessons You Can Learn From a 6-Year-Old | Build a Business, Not a Job Podcast Some of our favourite quotes from the show:  “Not taking the first step is one of the most common reasons many people remain unhappy and frustrated.” – Michael Yardney “Don’t take yourself so seriously, because if you do, you’re not going to enjoy the journey, and you’re not going to achieve what you want.” – Michael Yardney “Why not show a bit of empathy? Why not communicate regularly about how you feel, and how you feel about others.” - -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.

Much of the Australian economy is being kept on temporary life support either by federal government schemes or through bank relief.  These assistance measures are slated to end after 6 months, but clearly the coronavirus crisis won’t be over by then, and unemployment probably won’t return to normal levels for a few years.  People are wondering what’s going to happen to house prices, unemployment, and our economy once these protections are taken away, and there are lots of forecasts coming up.  That’s one of the things I want to talk to John Lindeman about today.  Many of the upcoming predictions are bound to be wrong, so we’re going to have a chat about what you should be looking for when you’re looking at forecasts, and he’s also going to share a great analogy with you about a plane flight and our property markets to help you understand where we are in the market at the moment, and how to pick the turning points.  And then, in my mindset moment, I’m going to show you 11 ways to fail. You may not want to fail but knowing how to fail can actually help you to succeed in life. Highlights from my chat with John Lindeman How predictions often combine different types of property together Predictions tend to lump different types of housing together, like apartments and houses They also combine large geographic areas, when in actuality, coastal areas, outer suburbs, and inner rings of cities may perform very differently. Predictions that lump too many different factors, geographic areas, or types of housing together are largely useless The difference between expectations and predictions Expectations are based on knowledge of what has happened in the past and extrapolating from that what will likely happen in the future Predictions are more specifically aimed and therefore less likely to be accurate How to time the turnaround Signs that things are starting to look up. 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 John Lindeman – Lindeman ReportsJoin us at Wealth Retreat 2020 in November Shownotes plus more: Property forecasts - which are useful and which to ignore, with John Lindeman Some of our favourite quotes from the show: “I see a big difference between an expectation and a forecast.” – Michael Yardney “Those who are happy and successful don’t necessarily have a more blessed or lucky life than the other mob.” – Michael Yardney “Cynicism requires a lot less work than belief in something.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you’re like the most listeners to the Michael Yardney podcast you are here to learn about success, money and property investment.  Well you’re in for a treat today because I’m going to be chatting with Mark Victor Hanson who has inspired over 1 billion people through his books that have been translated into 54 languages. I know he inspired me when I first read his chicken soup for the soul series of books, but then I went on to read his books related to entrepreneurship and property and they came at the right time in my life when I needed them. I know currently a lot of people are feeling challenged by what’s going on in the world around them, so I hope Mark words of inspiration will come at the right time of your life, just like they came at the right time in my life. He got a powerful message to share with you and it’s more than his normal message about the principles of perseverance, excellence and believe in oneself. It’s a message for everybody in these challenging times so I’m proud to have a chat with one of the worlds most respected thought leaders who is known globally is the ambassador of possibility.  Mark Victor Hansen is probably best known as “that Chicken Soup for the Soul guy” and has sold over 500 million Chicken Soup for the Soul books worldwide.   But there’s a lot more to Mark than that. For more than 44 years, he has focused on helping people and organizations reshape their personal vision of what’s possible. He’s been featured by Oprah, CNN, and The Today Show… just to name a few. We discuss: How Mark is handling Covid-19 Don’t wait until everything is right. It will never be perfect.  There will always be challenges obstacles and less than perfect conditions so get started now. Life isn’t meant to be easy - make the most of life’s challenges. If you can’t change the situation you can change your response. The importance of adaption Charles Darwin, famously taught the principle of Survival of the Fittest which said: “It’s not the strongest of the species that survives, nor the most intelligent that survives. It’s the one that most adaptable to change.  Today the world is changing at a most amazing pace, so it’s important to keep up and adapt. Your destiny Mark believes each of us has a destiny and it’s our job to find it.  He explains how we go about doing that. We should ask for more Mark teaches us to ask for more, explaining that the world responds to those who ask.  Most people in this world, however, find themselves in settled lives, never really achieving or receiving what they hold in their dreams . . . because they just never ask. You get whatever you expect to get. The only question is, what do you want? Do you know clearly what you want you wake up every morning excited about life? 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 Mark Victor Hansen at a free livestream in Australia on Sunday 26th July at 10.00 -  mesiti.com/chickensoup Some of our favourite quotes from the show: “If you do things the same way you always done, you’ll get the same outcome. In order to change your outcomes, you’ve got to do things differently.” – Mark Victor Hansen “If you keep believing what you have been believing, then you’ll keep achieving what you’ve been achieving.” -  Mark Victor Hansen “The size of your thinking determines the size of your results. Life is about thinking big to play big and achieve big. The future has extraordinary opportunities that are scaling beyond anything ever previously imagined and each of us gets to participate actively as you control your mind power.”  -  Mark Victor Hansen PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it’s your way of passing the message forward to others and saying thank you to me. Here’s how

The coronavirus pandemic has created one of the worst recessions the world has seen since the 1930’s Great Depression – but it was also shaping up to be one of the shortest. Australia’s economy was already showing signs of bouncing back, following a “very deep contraction” but then the threat of a second wave of coronavirus hit us. What would a serious second wave of coronavirus due to our economy and our property markets? That’s what I want to discuss with you today.  While I’m optimistic about the future, I realize that unemployment and underemployment rates are set to take years to return to pre-coronavirus levels. Our economy will grow more slowly this year and next, but a significant second wave of coronavirus will do some damage to our consumer confidence and slow everything down again, so I’ll explain my thoughts about this in more detail today. Then I’d like to share an important message from one of my mentors, Jim Rohn, that will help you give you some inspiration to work through these challenging times. What would a second wave of Coronavirus do to our property markets?  Our property markets have been remarkably resilient so far, but how would a significant second wave of coronavirus affect our housing markets? Well…If we look back there are a few lessons we can learn to help us better understand what’s ahead. In spite of the Coronavirus induced economic downturn Australian property values didn’t crash as the doomsayers predicted and our economy rebounded more quickly than many expected. At the same time, rental relief packages have kept tenants in their homes, and mortgage support has meant that there have been very few forced sales. However, home buyers and sellers went on strike choosing to postpone their next move until more certainty returned to the market and this contributed to a 32.4% drop in property sales volumes over April. Then as social distancing measures eased and consumer confidence returned, property transaction numbers experienced a strong recovery in May and June. Initially, it looked like we were going to experience a deep, but short, economic recession and that our property markets would weather the storm defying the 10%-20% fall in values some had predicted. But if Australia is hit by a significant “second wave” of coronavirus cases it would postpone the economic recovery that many economists expected in the second half of 2020. So what’s ahead? Of course, no one really knows what’s going to happen to property values, so it’s important to analyze and anticipate possibilities and probabilities. A significant second wave of Coronavirus and a continuing barrage of negative news in the media about our health, unemployment, and businesses going bust is likely to dampen consumer confidence further and have a negative impact on our property markets. But if a second wave of infection overtakes us, we can expect further government support.  The government and the Reserve Bank have clearly stated that they will do anything and everything they can to support our economy and minimize the impact of the coronavirus on our businesses and our economy. What about property values? If a second wave of coronavirus causes further lockdowns or more social distancing restrictions, our property markets will slow down as they did in March and April. Both buyers and sellers will go on strike until the picture becomes clearer. But like earlier this year, property values won’t plummet, because it’s unlikely that there will be a flood of properties for sale.  At the moment I’m seeing three levels of buyer property sentiment out there. The Negative Nellies who are worried that property prices are going to crash and all they can think of is doom and gloom. Those who are bunkering down, battening the hatches, and just waiting for news that this is all over. Those with a positive outlook who have a secure job and a long-term focus who is seeing great buying opportunities in the market when there is less competition and interest rates are the lowest of ever been in history. The worst affected residential markets will be:= Apartments in high-rise towers – in fact, this is these properties are likely to be out of favor for quite some time. Off the plan apartments and poor-quality investments stock (as opposed to investment-grade) apartments, particularly those close to universities. Outer suburban new housing estates house and land packages, where young families are likely to have overextended themselves financially and with many people will be out of work for a while Properties in the blue-collar areas. On the positive side, households and property investors whose incomes remain stable and secure will be able to take advantage of historically low interest rates. What’s going to happen to our economy? Yes, the health crisis has led to an economic shutdown, and some were concerned that this had the potential to create a major financial meltdown, but clearly that hasn’t happened. Unfortunately, there is no roadmap to follow, so governments will need to quickly respond to changes in circumstances. But most of the bright folks I’ve been following and talking with agree that Australia is in a better position than any other country in the world to work its way through the challenges ahead. What else is likely to happen? It has been said that up to 3 million Australians have changed their living habits because of Covid-19, with many young people moving back with their parents. And this trend will likely continue, meaning our rental markets will continue languishing with fewer people seeking rental accommodation at a time when vacancy rates, particularly in our CBD’s and inner suburbs remain high. At the same time, our banks will remain vigilant and continue to scrutinize all new loan applications carefully so if you’re looking to refinance your loans to the prevailing low interest rates or take on a new loan be prepared for long possessing delays and to answer many questions.   The banks will also offer further extensions to the repayment holidays given to borrowers with cash flow issues. The bottom line. In times of trouble, it’s important to retain a long term perspective. Property is resilient – very different to share market. Most property is lived in, which means people will do away with many other luxuries before someone will sell their property, much less their home. 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 November 2020 – find out more here Shownotes plus more here: What would a serious second wave of Coronavirus do to our property markets? Some of our favourite quotes from the show: “Not surprisingly there’s a strong relationship between how people feel about their finances and job security and the financial decisions they make.” – Michael Yardney “It looks like we are going to have a stepwise recovery as our economy opens up in stages.” – Michael Yardney “So if you’re one of the lucky ones, somebody who is still financially secure, why not consider this as a good opportunity to upgrade your home or buy the next investment property?” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What drives property price growth? Especially in this era of lower interest rates, lower inflation and lower capital growth in general? If you want to one day live off the fruits of your property portfolio, you’ll need to own the sort of properties that grow at wealth producing rates of return that outperform the averages.  Today we’re going to have two different views on the subject.  First, Brett Warren is going to give his thoughts and views on the subject. Then, I’m going to have a chat with Pete Wargent, who says there are only three factors that drive property price growth.  These two guests are probably going to end up in much the same place, but after listening to both you’ll be much more informed about how to choose an investment-grade property.  Demographics is the key with Brett Warren  Demographics is a critical factor in both property prices and the economy. Understanding the demographics can make the difference when it comes to choosing the right property. Some of the most important factors to look for include: Owner-occupier appeal A homeowner is unlikely to panic and sell their home at the first sign of a crisis, but an investor might.  An area with a higher percentage of homeowners than investors is likely to be more stable than an investor-heavy area. Income level Areas that are good for investing tend to attract residents who aren’t living paycheck to paycheck.  Instead, the owner-occupiers tend to have multiple income streams. Dual incomes, bonuses and commissions, side business, and income from property or shares, for example Occupation type Look for areas where people are employed in professional services such as IT, financial, and health services We have to take a step back and assess the fundamentals because the fundamentals don’t change from week to week or month to month. If you can get those right, you can make the best investment decisions. Don’t forget the 6-stranded approach. Look for:  High owner-occupier percentage Not off the plan Land-to-asset ratio What happened during a downturn Something with a twist The ability to add value 3 Factors that drive Property Price Growth with Pete Wargent Supply – The rate of new construction and the number of properties listed for sale  Interest Rates – The cost of borrowing       3. Population Growth – Includes factors like immigration,                  natural population growth, and interstate migration. Links and Resources:  Brett Warren - Metropole Property Strategists 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 Join us at Wealth Retreat in November 2020 – find out more here Shownotes plus more here: Are there really only 3 factors that drive property price growth? With Brett Warren and Pete Wargent Some of our favourite quotes from the show: “We’re looking for areas where people can afford to, because they’ve got higher incomes, and they’re prepared to pay to live in those areas, because of the aspirational element of those suburbs.” – Michael Yardney “There was a period of oversupply before, but now it’s the other way around. There’s actually the lowest level of listings available with new or established properties than there has been for a long time.” – Michael Yardney “The government hasn’t spent all that money and all that effort to get us across, and then let us fall over a cliff.” – 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 halfway through the year, and let’s hope the second half of 2020 is going to be better than the first half.  That’s what we’re going to chat about in this episode of the Michael Yardney podcast, while I give you some ideas about what’s ahead.  I also chat with Pete Wargent about what’s really happening with the financial system, our housing markets, and concern about housing stress.  Hopefully, today’s episode will bring some extra clarity and certainty in today’s uncertain times.  Now that we’re halfway there I’ve never seen a trilogy like this with: A global pandemic, Australia slipping into recession and Increasing geopolitical and local social unrest. This means there’s a lot to think about … both at the macro-level affecting our country and its place in the world economy and at the micro-level with your investment or business strategy. It’s like those jugglers at the circus, with so many plates spinning in the air at the one time. Which ones are going to keep spinning, and which ones are going to come crashing down? This means it’s important to keep an eye on all those spinning plates and watch out for warning signs. Ignoring the warning signs of plates about to topple almost always ends badly. Yet even rational adults at times revert to burying their heads in the sand trying to hide from the scary realities of what’s going on. Of course, you can ignore reality, but you can’t ignore the consequences of ignoring reality. Then there are the pessimists who only seem to see the downside. And at present, they’re out in force. These Negative Nellie’s can only see the worst happening with a major world recession. On the other hand, there are the optimists who only see the upside … and some may get blindsided by dangers which are obvious in hindsight. Yet over the years, I’ve realized that the secret to success is the ability to pursue the upside while keeping the downside in view so it can be managed. Sure, there are lots of downsides if you look for them. Which of those plates will keep spinning and which will topple? If they topple will they break? If so, what does that look like? Do you have a plan? But if you love the freedom to pursue opportunity, own property portfolio, build wealth, and retain and enjoy the fruits of your efforts, it’s hard work you’ll need to do. So what’s ahead? Australia’s economic outlook depends on the success or otherwise achieved by the government health authorities and communities in suppressing the spread of the virus. If the virus is contained and the active caseload remains manageable, then more parts of the economy will reopen, and a degree of normality can return to society and the economy. You see…there is no roadmap to follow so governments will need to quickly respond to changes in circumstances. But most of the bright folks I’ve been following and talking with agree that Australia is in a better position than any other country in the world to work its way through the challenges ahead. It looks like we will have a stepwise recovery as our economy opens up in stages. Sure, some of our support mechanisms will be taken away at the end of September, with JobKeeper and mortgage holidays ending; but I can’t see the government pulling the rug out from under us. They have spent too much time, money, energy, and publicity telling us how they are going to support us, so it’s likely the support will remain but in a more targeted fashion. Our governments have a vested interest in keeping our real estate markets liquid and buoyant, recognizing that consumer confidence is critical for our economic recovery. They know that the quickest ways to see consumer confidence plummeting is for people to see the value of their homes dropping. At the same time, our banks have a vested interest in supporting our property markets. Highlights from my chat with Pete Wargent: The good news is that things look a lot better in July than they did in mid-April When there’s a known risk, the more people talk about it, the more the impact is dampened The government does have the opportunity to smooth things over in September It’s going to be a step-wise increase, not a V-shaped recovery The demographics of the people most affected by the economic difficulties suggests that mortgage repayment won’t be as big a problem as initially thought People need to think carefully about the incentives to buy high-rise apartments or house and land packages Australia is predicted to do better than any other developed country’s economy going into 2021 This means that once Australia can open again, the demand for Australian visas and work in the Australian economy is likely to be as good as it’s ever been 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 ReturnsJoin us at Wealth Retreat in November 2020 – find out more here Shownotes plus more here: We’re halfway there and the real truth about Mortgage Stress with Pete Wargent Some of our favourite quotes from the show: “It’s fairly obvious that people, businesses, markets, financial systems, and even society itself is suffering.” – Michael Yardney “Consumers feel confident when they know that their biggest asset, their home, is secure.” – Michael Yardney “If consumers are confident about their financial future, about the state of the Australian economy, they’re going to spend again.” – 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’s no lack of property-specific data information out there. It is often available with just the click of a mouse.  However, with this increased availability of data, there are new challenges.  How do you make sense out of all this data? Whose numbers can you trust?  In today’s episode of the Michael Yardney podcast, I chat with Kate Forbes about her specialty, how to interpret data.  How important are median prices? In the simplest sense, the median house price is the middle point of all sales ranked from high to low. For example, if there is an influx of first home buyers in a location who are buying at the lower end of the price scale, then the median price will drop. On the other hand, the median will go up if a lot of people in the area are renovating and upgrading their properties. Median prices tell you what’s happened recently, but it doesn’t give you much information about individual properties. What factors in supply and demand should you look at? It’s important to understand a number of factors with the number of properties for sale.  A number of new properties is indicative of vendor confidence.  How long houses have been on the market matters as well. If there are a lot of properties for sale, but they’ve all been there for a long time, that’s not a good sign.  Days on market I’ve found the trend of days on market can tell you whether we’re in a buyer’s or seller’s market. If it’s taking longer for properties to sell, it’s usually a sign of softer market conditions and vice versa. Vendor discounting When there are fewer buyers out looking for property than there are properties for sale, vendors usually need to discount their asking prices to secure a buyer. But when there’s plenty of buyer interest vendors have less need to discount their asking prices. Market Depth The more people that you have looking for one particular thing, the greater the market depth there.  Rental Yield If a rental yield starts rising that’s a sign that there is strong demand from tenants to live in those locations. However, as more investors go to the location and property prices rise, rental yields begin to drop. 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 Organise a time to speak with Kate Forbes- National Director Metropole by clicking here Shownotes plus more here: Number Crunching: How to Understand Property Data, with Kate Forbes Some of our favourite quotes from the show: “We like market depth from owner-occupiers, not investors.” –Michael Yardney “At any level of your financial journey, money management is important.” –Michael Yardney “Being aware of your spending is one of the most powerful tools that you’ve got for being aware of yourself.” –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