Property Investment, Success & Money | The Michael Yardney Podcast

I’m often asked what are the big lessons I’ve learned from investing in property for close to 50 years? Probably the most important lesson I think we can learn is that the market is driven not only by the fundamentals but also by the irrational and erratic behavior of an unstable crowd of other investors and homebuyers.  So never get too carried away when the market is booming or too disenchanted when the market slumps, because letting your emotions drive your investments is a surefire path to disaster.  Today, I’ll chat with Brett Warren about some of the lessons I wish I’d known when I first started investing. If you can learn these lessons now, you can avoid paying some of the learning fees that I had to pay to the property market as I made mistakes. 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 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  

Robert Kiyosaki has taught millions and millions of people some important financial concepts.  I learned a lot from him in my early years, and I’ve quoted him on many occasions.  But I also believe that the way he thinks about real estate – which may work for him in the US – is not relevant in Australia.  And there are a number of his other concepts that I don’t believe are correct.   He does have some great basic rules of investing that I’m going to share with you on today’s podcast.  I’m also going to share what I disagree with about his concepts. Then you’ll have the information you need to make your own decisions. Some of Robert’s basic rules: Rule number 1: You should adjust your money mindset.  Rule number 2: Know what kind of income you’re working for. Earned income, portfolio income, or passive income? Rule number 3: Convert ordinary income to passive income. Spend less than you earn, save it, invest it into an asset class that will give you investment income. This involves delayed gratification. Rule number 4. The investor is the asset or the liability. Invest in your financial education first. Like that one. Rule number 5: Learn to evaluate risk and reward.  Rule number 6: Understand the cash flow quadrant. Where I disagree with Robert: Where I disagree with Robert is that he defines an asset is something that brings in cash flow, while I view capital growth as another form of income. I believe you have to build a substantial asset base first, then convert that asset base to cash flow.  The end game usually involves a number of different types of assets. We don’t know what’s going to happen 10 years in the future, but we do know that if you have assets, you will have choices.  Robert has done a great job of making sure people understand the importance of how money works. But I’m concerned that he has scared off many investors and led others astray with his prophecies of Armageddon.  He’s become a pessimist. I find no real substance behind his beliefs that the market is going to crash.  Further, I feel that Australians are misled by investment advice that may work in America, but not in Australia.  Real estate investments are not cash flow investments in Australia.  In my mind, investment decisions should be based on the potential for capital growth. Cash flow is important, but it’s not the end game.  Robert suggests that your home is not an asset. I disagree with that.  Robert is an ardent real estate investor. He owns 3 homes and 8000 rental properties. So clearly, he knows a lot about property – in the United States where the rules and tax regimes are very different. Robert says that your home is not an asset, it’s a liability, because it doesn’t bring money in and you must spend money on it.  But that’s not my definition of an asset and it’s not the standard definition of an asset either. I believe this assumption is flawed.  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 2020 Some of our favourite quotes from the show: “The first step is to use leveraging gearing to buy high-growth assets.” – Michael Yardney “If you’re focusing on cash flow as a goal, you’re not doing it right.” – Michael Yardney “If a problem isn’t going to matter in ten months, don’t even spend ten minutes worrying about it.” –Michael Yardney Shownotes plus more here: Here’s where Robert Kiyosaki is wrong about property 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 often talk about the things that we learn in business, the lessons that we get, and the people we get the lessons from. That got me thinking just the other day about how I also think there are some lessons that we can learn not from people, but in fact, from animals.  So today I chat with Mark Creedon, founder of Business Accelerator Mastermind, about 10 life lessons  we can learn from dogs.  Here are some of the things we discuss.  Dogs live in the moment.  They don't worry about the past. They don't think about the future.  Dogs find ways to overcome fear. Truth is there's often a lot of fear around being in business, especially in the current challenging climate. But interestingly dogs learn ways to overcome their fears.  Dogs don't hold grudges.  I didn't take him for our normal morning routine a walk this morning, yet he hasn't held a grudge against me.  It's not as if he's turned his back on me and ignored me. Dogs don't hold grudges.  Dogs play every day.  When was the last time you played?  To me, play is two things.  It's about physical movement and getting out, whether it's throwing the ball with your dog, or playing with the kids, or playing in the park, or flying a kite, or running on the beach, or going for a swim, whatever it might be.  But it's not just about physical movement, it's also about psychological well-being or mental health, and the release of dopamines, and all the neuropsychology that goes around that.  Dogs jump for joy when they're happy.  When was the last time you just showed unabashed joy?  Dogs just jump for joy. You can go out for five minutes and come back, and they're all over you.  Dogs accept who they are.  Dogs don't want to be another dog.  They don't want to be a different breed.  They don't wish they were somewhere else.  They just accept who they are.  Dogs enjoy the journey When we're talking about setting goals with clients, we often talk about the importance of both destination and journey goals. In fact, it’s important to enjoy the journey otherwise you won’t enjoy the destination. Dogs are loyal and dependable.  Dogs are pack animals.  My best mate is a dog trainer who often talks about the link back to wolves and packs.  Dogs understand who their pack is.  Dogs drink lots of water. Dogs know what their body needs, and so they drink lots of water.  So should you! Dogs love unconditionally.  I'm not talking about romantic love, or holding hands and singing Kumbaya.  I'm just talking about love in terms of affection, support, loyalty, attention, appreciation, gratitude; things dogs do unconditionally.  So there it is….. Ten things that dogs can teach us that you can apply not only in business but in life in general. 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: Ten things dogs can teach us about business… and life | Build a Business, Not a Job Podcast Some of our favourite quotes from the show:  “Look for something that’s holding you back – let’s put it differently. Something that you’re still holding onto that you should have let go.” –Michael Yardney “Here’s another challenge for you, the people listening to this podcast: think about something that makes you happy. Now, why aren’t you doing that more often?” –Michael Yardney “Long-term goals are important, but if they’re too far out, you’re not going to achieve it so you need those intermediate goals.  –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 living in challenging and interesting times – a coronavirus pandemic, a recession, social unrest, financial instability – so today, I’m going to offer you something very different as I speak to two of the world’s best motivational and inspirational speakers, Les Brown, and Dr. Willie Jolley,both from the United States.  We’re not even going to talk about property today.  When you come to my podcast, you’re usually interested in success and improving yourself.  Property is really just a vehicle to get more financial success, but today we’re going to talk about a more important vehicle: you. Your mind, your brain.  We’ll talk about how to rebound back even stronger after the challenges we’ve been through. One of my guests is an inspirational speaker and one is a motivational speaker.  What’s the difference? Listen in, and you’ll find out.  Les Brown’s Top 10 Rules for Success For over 50 years, Les Brown has transformed lives internationally as a fast-talking radio DJ, as a community activist, a State Legislator, and a motivational guru.  His global following call him The World’s #1 Motivational Speaker.  Here’s his advice:- Believe in Yourself Believing in yourself when no one else does is one of the strongest characteristics a human can hold. Don’t Stop Running Towards Your Dream This is Les Brown’s most important advice: never give up. You will have to make sacrifices to achieve your dreams, and you will doubt yourself, but don’t stop. That’s all. Don’t stop. Take Full Responsibility for Your Life Early on, Les recognized that he had to accept where he was at. He couldn’t just be angry, he had to accept reality and move forward to improve it. Stand Up to Yourself The inner negative conversation is the most insidious and dangerous enemy we face when we seek success. Conquer yourself and you can conquer anything. Go All Out Going all out means doing whatever it takes to make things happen in your life. Whatever it takes to make your business succeed, whatever it takes to get that dream job or raise. Do whatever it takes! Stay Busy When Brown was fired from his long-time job at the radio station, he didn’t quit or take a break. Instead, he stayed busy by running for election in the Ohio House of Representatives — and he won. Stay busy and keep planting seeds. Keep putting yourself out there, and something will happen. Give More Than You Are Paid For Success comes through hard work, and that is why it is critical to give more than you are expected to give. Don’t half-ass your life. You will be rewarded for hard work. Someone’s Opinion is Not Your Reality You will face defeats in your life. You will face those who doubt you, despise you even. But other people’s negative opinions about you do not determine your reality. You determine your reality. You’re Different If you truly want success in your field, you must believe and embrace the fact that you are different. Don’t you think that you perform better when you believe that you are the best? Go Above and Beyond; Amaze your Customers Les Brown teaches the point that it is necessary in this customer-driven economy to not just serve your customers but to actually amaze them. To go so far beyond what they expect that they are blown away.  Conversation with Dr. Willey Jolley Dr. Willie Jolley has been called “the most powerful speaker, singer, and author combination in the world today!”   Dr. Jolley was named “One of the Outstanding Five Speakers in the World” by the Toastmasters International.  Only 50 speakers worldwide have been given that honour - including Colin Powell, Nelson Mandela, and Margaret Thatcher!  Some of the Topics I Discuss With Dr. Jolley The importance of adapting during a crisis How to get past the negativity in media The impact of good news The importance of choosing your network wisely Finding opportunity in adversity Lifting and shifting your mindset Investing in yourself Changing your responses when you can’t change what’s happening The difference between a motivational speaker and an inspirational speaker Links and Resources:  Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in November 2020 – find out more here Les Brown’s book: You’ve Got to be HUNGRY: The GREATNESS Within to Win Dr. Willie Jolley’s Free Gift To register for the FREE for the Get Motivated Get Wealthy Online conference on Sunday 28th June 2020, featuring Les Brown and Willie Jolley visit www.getmotivatedgetwealthy.com.au Shownotes plus more here: Inspiration and Motivation from 2 of the world’s top masters: Les Brown and Dr. Willie Jolley Some of our favourite quotes from the show: “I guess that’s where it all starts, isn’t it – in self-belief, not what other people think of you.” –Michael Yardney “It’s not just that you read, but it’s also what you put in your mind.” –Michael Yardney “Every adversity creates opportunities, carries opportunities, the challenge is to find that seed of opportunity.” –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

Today’s podcast is based on your questions: questions listeners have asked and the questions that our clients are asking us at Metropole.  There’s still so much uncertainty about a recession and uncertainty about what’s going to happen to property values, so today I’m going to give my thoughts and leave you with more certainty and better direction. We’ve been hit by a health crisis that’s led us into the most serious global recession in almost a century. But there is some good news. Recent events have left many of us feeling uncertain, but they’re also responsible for some of the best opportunities in our lifetime. It may be your opportunity to realize financial independence.  What’s going to happen going forward?  Recessions are always periods of significant opportunity because they are a time of transfer of wealth The technical definition of a recession is two-quarters of negative GDP and while we’re not there yet, we’re in recessionary times. By the time we find out we’re officially in a recession, it will all be over I see a staggered, satircase recovery rather than a V-shaped recovery In the meantime, many will probably stash their  cash waiting for the news that we’re through the worst of things We entered this recession with a positive balance of trade, an almost-balanced budget, and a solid banking system in Australia We’re not seeing many mortgage defaults because in general, debt is in the hands of those who can afford it There will be higher unemployment for a while, but it’s likely it won’t be as bad as initially predicted Reduced wages will lead to less spending power for a time The real estate markets have slowed down. There are fewer transactions and fewer houses on the market.  The property market is starting to pick up, and there’s a flight to quality but there are \ great opportunities for investors prepared to take a long-term view Over the next few years, interest rates will remain at historic lows There will be a short-term window for those who want to get into property, as many are still sitting on the sidelines The Reserve Bank can’t lower interest rates any further, so governments will have to stimulate the economy with fiscal policy  Unemployment will likely be high for a couple of years While some industry sectors will suffer, others will do OK Tourism, education, retail, and maybe the financial sector will suffer Government, manufacturing, technology, defense, agriculture, infrastructure, and healthcare will all do well Some Recommendations: Don’t overreact. Be careful not to get sucked in by the news and by the hype. Instead, think long-term.  Don’t try to time the market, and don’t try to get a bargain. Just buy the best property you can in the best location you can in your budget Before you get into property, make sure you have a solid foundation. Have financial buffers in place and talk to some experts about the right ownership structures to maximize your upside and minimize your risk 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 2020 Shownotes plus more here: Coronavirus, Recession, and Property: Who’s right – the pessimists or the optimists? Some of our favourite quotes from the show: “I see a staggered recovery as we move out of lockdown in stages.” – Michael Yardney “Recessions are largely driven by how the population as a whole is feeling about the economy, more than what the economy itself is doing.” – Michael Yardney “We know from previous downturns that before unemployment goes down, the property market starts to pick up. Rising property values always lead us out of recession.” – 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’ve been hit by a health crisis that has led us into the most serious global recession in almost a century.  Despite living in one of the richest countries in the world, many Australians are currently struggling financially, and if history repeats itself, the gap between the wealthy and the average Australian will only get wider.  But there’s still good news. Though recent events have left many feeling uncertain, the same events will also be responsible for some of the best opportunities of our lifetimes. It may give you the opportunity to realize your own financial independence.  We’re moving into a time of change.  Most people don’t like change; we’d prefer a more predictable environment. But if you can get past that, you’ll be able to take advantage of the opportunities that are going to arise, and that’s what I’m going to talk about today.   How the Rich think differently  There is a classic book by Napoleon Hill that I recommend you read called Think and Grow Rich.  While it was written almost 100 years ago, you will find it on the bookshelf of almost every successful investor.  Now there is a good reason why the book is called Think and Grow Rich and not Get a Job and Work Hard and Grow Rich. It’s because the rich think differently to most people and those who work hard at a job don’t end up rich.  So let’s look at the difference between wealth-generating thoughts and impoverished ones. The Rich think Big Picture, while the Poor get lost in Detail. I frequently see the rich do well by recognizing opportunities, while the poor get bogged down and distracted by all of the finer points. This often means that all they end up seeing in a given situation are obstacles or problems.   The Poor trade their time for money, while the Rich work their money. The only way the average Australian knows how to get more money is by working harder; by trading hours for dollars - they either work more hours or get a second job.  The rich invest in assets like property that increases in value and brings in money whether the owner works or not.  The Poor think Cash Flow, the Rich think Assets. The poor build their cash flow while the rich build their asset base (like their investment property portfolio).  The poor spend their cash flow (the money they earn after paying tax), while the rich spend their capital or money generated by their assets.  The Poor save their Money.   The poor save their money thinking it is a way to become wealthy.  On the other hand, the rich are comfortable borrowing and using leverage to buy appreciating assets.  The Poor decrease their Debt while the Rich increase their Debt.   The average Australian is scared of debt.   The rich realize that they become even more wealthy by owning assets that increase in value, such as well-located investment properties.  The Poor try to pay off their Home.  Your home is an appreciating asset and the only way most of us can ever buy a home is by taking out a mortgage, so even though your home loan is not tax-deductible, it is not bad debt - it is “necessary debt.”  The rich recognize this and don’t strive to pay off their home loans.  The Poor like to Trade.  The poor try to make money through trading - through buying and selling.   Whereas the rich understand that they make more money by holding onto their assets and never (or rarely) selling. They realize that they can refinance against the appreciating value of their properties.  The Poor think Scarcity while the Rich think Abundance.   The truth is that money is just energy, an exchange for value.  If you make the mental shift that money is limitless, that it can be invented and generated on demand, in line with the value you provide, it will open up all sorts of possibilities. The Poor believe that Life Happens to them, while the Rich believe they Control Their Lives.   The rich believe they are the pilot of their destiny while the poor feel they are just a passenger being taken along for a ride in the flight of life. The Poor think Small while the Rich think Big.   The rich think big. They take responsibility. They play the game to win and they do well.   When you think like a rich person you have big visions and dreams, you focus on doing what you love and are most passionate about.  The Poor want to be Rich, the Rich are committed to wealth  The poor want to be rich, while the rich are committed to becoming wealthier.  The Poor are scared of Failure.   The poor have a fear of failure - they see it as something bad.  The rich know that on their way to becoming financially independent they will have moments where things won’t go according to plan - what I like to call retracements.  Just because something doesn’t work out, it doesn’t mean you have failed.  Nor does it mean you are a failure.  It simply means you have found another method or approach that doesn’t work, and this discovery brings you one step closer to making sure it will work the next time.   The Poor think they know it all and don’t need to be taught to become wealthy.  The rich know they can always learn more. They are constantly asking questions and seeking answers.  So what now? As you can see, you need to develop a very different mindset if you want to become rich.   So how do you start to evolve your mindset? Well, you will need to take the following three steps... Develop Awareness Become aware of what’s working for you – the thoughts, actions, and behaviors you want to keep and the things that haven’t served you so well in the past – those aspects of your internal dialogue you want to change.  Develop new beliefs Model yourself on other successful people – people who have already achieved what you want to achieve.   In other words, the fastest way for you to become financially successful is to adopt the thoughts, behaviors, and actions of people who are already there. Take Action Now it’s time to act on your new positive beliefs. This process is commonly known as Be, Do, Have.  You become the person you want to be as soon as you start thinking and acting like that person.  If you want to become wealthy, become wealthy in your mind first (be that person), then behave the way wealthy people behave – do your wealth act.  Links and Resources:  Michael Yardney Join Michael's Mentorship Program and learn the science of Getting Wealthy Join us at Wealth Retreat 2020 in November  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: What the rich are doing to position themselves to get richer in the Roaring 20s Some of our favourite quotes from the show: “The rich have a big picture outlook on life in general and their investments in particular,while the poor think in a more detailed way.” – Michael Yardney “The rich don’t get a second job. They send their money out to get another job to work for them.” –Michael Yardney “When you move from the realm of desire or wanting, to the realm of commitment, ambition, then you’ve got no choice. It’s not negotiable. You’re going to get there.” – 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

The coronavirus crisis has cut Australia off from the world. And our population growth is about to slow dramatically.  This is going to affect our property market and slow economic growth by up to 2%.  Every time we have an economic downturn, immigration becomes a topic of great interest. And with the likelihood of unemployment rising to over 10%, the discussion has become even more vocal.  In today’s show, I discuss the political, economic, and property implications of immigration with our regular guest, leading demographer Simon Kuestenmacher.  You may be surprised by what his research suggests will happen to immigration, and the information may help you shape decisions going forward.  Highlights from my talk with Simon: The variables Simon had to consider when looking at the consequences of the decrease in immigration The idea is that by 2030, Australia will still have grown, but by one million less than they could have without the pandemic So far, Australia seems to be getting through the pandemic with very few deaths, so there isn’t currently a need to alter the death rate predictions Over the next year or two, the demand of the labor market will be able to be filled with people who are already in Australia.  But after a year or so, Australia will hit the wall again and new talent will need to be brought in.  The demographics of the missing million How those missing demographics affect businesses How temporary visa holders will be affected The jobs that are servicing the property and construction industry will be suffering the most from decreased immigration Infrastructure spending Millennials finally in the family formation stage of the life cycle, which should be a positive for property and the economy Links and Resources:  Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group Simon’s YouTube Channel  Shownotes plus more here: How will plummeting immigration affect our economy and property? With Simon Kuestenmacher In these challenging times why not get the team at Metropole to build you a personalised   Strategic Property Plan – this will help both beginning and experienced investors. Some of our favourite quotes from the show: “I think there’s other benefits for infrastructure spending as well. We use local resources, we create local work, but it also leaves a legacy for the future.” – Michael Yardney “It looks like now we’re banding together from both sides of parliament, both sides of government, and wanting to build a new, stronger Australia.” – Michael Yardney “In order for you to grow stronger, part of you must die.” – 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

When you were a kid, you probably thought being an adult was all about staying up late and not doing your homework.  But now that you’re an adult, you know that there’s a lot more to it than that. Going to work, household responsibilities, paying the bills – and having your finances in order. And it’s easy to get down on yourself when you don’t have your finances where you think they should be.  But we all have different definitions of success and different ways of measuring how far we’ve come.  If you think about it, most Australians are living paycheck to paycheck and have a level of bad debt. When you realize that most Australians can’t pay an unexpected bill of $400 or more, you’ll realize that you’re probably better off than you thought you were.  Today, I’m going to have a chat with Brett Warren about why so many Australians are bad with money.  Here’s a number of reasons why we are so bad with money? The Dunning-Kruger effect. People’s lack of understanding about basic things prevents them from making good decisions. For every $1 raise you receive, your desires rise by $2 or more. You spend lots of money on material stuff to impress other people without realizing those other people couldn’t care less about you. You have never been able to predict what the market will do next. This doesn’t deter you from trying to predict what the market will do next. You get upset when you hear on TV that the government is running a deficit.  It doesn’t bother you that you heard this on a TV you bought on a credit card in a home you purchased with a no-money-down mortgage. The single largest expense you’ll pay in life is interest. You’ll spend more money on interest than food, vacations, cars, school, clothes, dinners out, and all forms of entertainment.  You’re thrilled that the credit card you’re paying 22% interest on offers 1% cashback on all purchases. You work in a stressful job in order to make enough money to have a stress-free life. You don’t see the irony in this. You’re a pessimist in a world where far more people wake up in the morning trying to make things better than wake up thinking we’re all doomed. You try to keep up with the Joneses without realizing the Joneses are buried in debt and can probably never retire. You associate all of your financial successes with skill and all of your financial failures with bad luck. Rather than admitting and learning from your mistakes, you ignore them, bury them, make excuses for them, and blame them on others. You say you’ll be greedy when others are fearful, then seek the fatal position when the market falls 2%. You let confirmation bias take control of your mind by only seeking out information from sources that agree with your pre-existing beliefs. You think you’re too young to start saving for retirement when every day that passes makes compound interest a little bit less effective. You’re investing for the next 50 years but get stressed when the market has a bad day. You don’t respect the idea that “do nothing” are two of the most powerful words in investing. You feel especially smart after last year’s market rally without realizing that you had nothing to do with it. You seek advice from a doctor to manage your health, an accountant to do your taxes, a lawyer to manage your legal problems, a plumber to fix your plumbing, a contractor to build your house, a trainer to help you exercise, a dentist to fix your teeth, and a pilot to fly when you travel. Then, with no experience, you go about investing willy nilly, all by yourself. You think financial news is published because it has useful information you need to know. In reality, it’s published only because the publisher knows you’ll read it. Bonus Points: You forget that the single most valuable asset you have as an investor is time. A 20-year-old has an asset Warren Buffett couldn’t dream about. You nodded along to all of these points without realizing I’m talking about you. 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: 20 reasons you’re awful with money with Brett Warren Some of our favourite quotes from the show: “The concept here is that once you earn more, you tend not to save it.” –Michael Yardney “One of the reasons we’re no good at money, one of the reasons we’re scared of making investments or decisions is because of all the negativity out there.” –Michael Yardney “We are all irrational with money. We all drive around with one foot on the accelerator and one foot on the brake.” –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

An Australian recession is just around the corner. But what will it look like? And what will it feel like?  That’s what we’re going to discuss in today’s podcast as I chat with Ken Raiss, Australia’s leading property tax strategist and Director of Metropole wealth advisory.  We’re going to talk about what you need to understand about a recession, why this time will be different, and what you’re likely to experience.  We’re also going to talk about what it will look like after the recession – don’t worry, there will be an after and it will be good. We’ll discuss how to protect your downside and give you some tips so that you don’t miss the opportunities this recession will bring.  What will the recession in Australia look and feel like? It’s no secret that Australia is going to fall into recession. But what does that really mean? How will this affect you, your job, your finances, and the value of your home or your investment properties? Recessions are always periods of significant opportunity and transfer of wealth. That’s just how the economy works. For instance, because of social distancing we aren’t going to restaurants anymore, but we’re still going to be eating, and some restaurants are prospering with takeaway while other grocery stores supermarkets are prospering because we are buying more food there. So, there’s always opportunity. It doesn’t always mean that if you win somebody else is going to lose. What is a recession? A recession is when the value of goods and services has fallen in two quarters in a row. Why this recession will be different? Recessions usually come after a period of substantial growth, speculation, and general excess. This time around, the Australian government has sacrificed economic activity in the name of health in response to the COVID-19 crisis. It’s not alone in this, as you’d well know, major economies worldwide including major powerhouses like the US and China have done and are doing the same thing, albeit in different ways. What will we experience as we move through this recession? There will be much higher unemployment, it will be harder to switch jobs, and it’s reasonable to expect more redundancies and terminations as the crisis continues. This leads to a loss in income and falling wages, which reduces the spending power of affected Australians. Even for those who are holding on to their jobs, uncertainty will rise. The Real Estate market will take a hit because of social distancing and the inability to inspect properties and transact in the normal way.  Property transaction numbers will decrease – there will be fewer buyers in the market and there will be fewer sellers placing their properties on the market for sale. Property parties will drop slightly, but investment-grade properties and A grade homes will not fall much in value. Some recommendations: Don’t overreact Recessions are largely driven by how the population on a whole is feeling about the economy—not the economy itself. Investors overreact, and some bargains will become available because of this in the stock market, and in the property market because sellers will overreact. Think long term  Don’t make 30 investment decisions based on the last 30 days of news. Think 10 years down the road.  Don’t try and time the market. Build a solid financial foundation.  Have the right finance strategist. Direct ownership structures to ensure you maximize your upside, protect your risks, minimize tax, and pass on your wealth to future generations Links and Resources:  Michael Yardney Ken Raiss Metropole Wealth Advisory Get the team at Metropole to help build your personal Strategic Property Plan Shownotes plus more here: What life looks and feels like in a recession Some of our favourite quotes from the show: “There’s no doubt that some bargains are going to become available – in the stock market in the property market – because some sellers are going to overreact.” – Michael Yardney “I think people are going to try and time the market. They’ve always done that. We’ve always got it wrong.” – Michael Yardney “Remember, even if 20% of the population’s unemployed, 80% will still be gainfully employed.” –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 interested in success, more money or property investment, today’s show is for you. First, we’re going to talk about the single greatest trait of successful property investors, in fact of people in any field. Then, I’m going to chat to Ken Raiss about land tax. That’s a tax I don’t like paying, but let’s understand a bit more about it, what you can do about it, and if it can ever be avoided.  And finally, this week my mindset moment is a special session where I’m going to give you some hints to help you achieve your goals in any area of life, not just investment.  The single greatest trait of successful property investors If you cornered me and asked me to come up with one single trait that I have found in common amongst the successful investors I’ve come across… what would that be? It’s that they make decisions and take appropriate action. In his classic book “Think and Grow Rich”, Napoleon Hill outlined 17 principles that he found to be responsible for the success of the world’s top business leaders of his day. Way back in the 1930s, Hill discovered that all of the most successful people had the habit of making swift and committed decisions. This principle, which is just as relevant today as it was almost a century ago, holds the key to determining the level of success you will achieve. I’ve found successful investors gather the necessary information quickly, make an informed decision, and then take appropriate action. And even when they don’t have all the information they need, they believe it is better to make a decision with some information, than not to make a decision at all. They then take action and gather the balance of the information as they move on. How do successful investors manage to take decisive action? The fact is that successful investors are faced with just as much uncertainty in their lives as the rest of us, however, they manage to take action because they have focus. They have clarity about where they want to be. They know exactly why they are investing in property. They have a time tested property strategy, a finance strategy to see them through the ups and downs of the property cycle and a tax and asset protection strategy to protect their assets. To make the most of our current turbulent economic and property markets strategic property investors will need: Unbiased economic insights. Education based on proven property investing principles and strategies. Guidance from expert investors who have been there, done that. Insider information so you can spot market trends that are “hidden” from the average investor. That is why it is critical to learn from experienced and successful property investors, from someone who has already achieved what you want to achieve and has retained their wealth in the long term. What is the land tax? With Ken Raiss Who should pay it? Does it apply to my home? And can I reduce this major property cost which seems to eat into my rental income disproportionally? These questions are often asked by serious property investors who already have or are in the process of building a significant property portfolio. So to answer your common Land Tax questions  I had a chat with Australia’s leading tax strategist Ken Raiss, Director of Metropole Wealth Advisory. Land tax is generally levied on the unimproved capital value of the land – not the total property value. Each state has different rules and thresholds of when the land tax will be applied. As is the case for most taxes, it is up to the taxpayer to advise the relevant state department that they are subject to land tax based on self-assessment by submitting either a land tax registration form or a land tax variation form.  The land you own and occupy as your home is your principal place of residence (PPR) and is exempt from land tax. There is a threshold (a dollar value) at which land tax will become payable. What is my property is in the name of more than one entity, for example, a couple? The couple is seen as a partnership and only one land tax threshold is available. If either of the persons has land in their own right then at the secondary level only the proportion held together is included when determining the liability in total. When purchasing land or property it is important to apply for a land tax clearance certificate to ensure you will not be liable for someone else’s tax or to give you the opportunity to have any liabilities adjusted at settlement. Links and Resources:  Michael Yardney Ken Raiss: Metropole Wealth Advisory 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 2020 –find out more here Shownotes plus more here: The single greatest trait of successful investors | What you need to know about Land Tax with Ken Raiss Some of our favourite quotes from the show: “One of the big things that holds many people back, I’ve found, is fear.” – Michael Yardney “You must become a master at visualization.” – Michael Yardney “Your brain doesn’t know the difference between something that’s actually happening to you and something you’re imagining. – 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