Property Investment, Success & Money | The Michael Yardney Podcast

If you’re like me, you’re probably sick of hearing about coronavirus all the time, so good news!  Today’s episode won’t be about the coronavirus. Instead, I’m going to teach you about wealth accelerators.  If you don’t know what those are, you will know by the end of the show, and you’ll understand how wealthy people use them to keep getting richer.  Then I’m going to have a chat with Pete Wargent about how Australians aren’t moving much anymore.  The rich use these 7 wealth accelerators to keep getting richer  Do you understand what a wealth accelerator is? Well, maybe you should … because that’s the way the rich keep getting richer. Now you’ve probably heard the expression money begets money.  Maybe you've even wondered why it's easier for people who already have plenty of money to make more of it.  Or maybe you’ve wondered why making your second or third million is much easier than it is to make your first million dollars? Well, here's why…. Strategic property investors who have built a true property investment business, grow their wealth faster by using a number of what I call “wealth accelerators” that leverage their returns.  Let's look at them…. Other people’s money One of the biggest differences between how the rich and average Australian go about building wealth is how they invest…not their own money, but how they leverage and use other people's money.  The wealthy have mastered the art of using money they don't have to build their wealth.  They used borrowed money to magnify their investment activities and enjoy accelerated returns by borrowing and leveraging against assets they own and use this to acquire even more assets. Other people’s time While many beginning investors waste time, energy, and effort trying to do everything themselves, successful investors put their time to its highest and best use. Some beginning investors believe they’re saving money by doing their own research, spending weekends house hunting, and competing with agents undertaking property negotiation.  However, their lack of experience usually means they get a secondary result and pay a huge learning fee to the market by paying too much for their property or buying the wrong property and missing out on significant future capital growth. Legally take advantage of the tax laws. Believe it or not, the tax laws were written to benefit business owners, meaning if you run your property investments like a business you're able to accelerate your wealth creation by taking advantage of these laws.  Essentially, as an employee, your cash flow is a bit like this….  You earn money, you pay tax, you spend what's leftover. However, as a business owner, the pattern is quite different.  You earn money, you can spend it on legitimate expenses associated with operating your business and earning income, and then you pay tax on what's leftover.  Correct ownership structures. Another wealth accelerator used by the rich is their ownership structures.  If you choose the right ownership structures for your investments you can accelerate your wealth.  Sophisticated investors own nothing in their own name, or very little in their own names, but control everything in structures such as companies and trusts. Their network. Successful investors realize they don't have to be an expert in every field if they develop a good network around themselves, including a smart finance broker, good solicitor, a property savvy accountant, and a knowledgeable property investment strategist.  Having a great network around you enables you to leverage off other people's expertise.  Your network of relationships is critical to growing your wealth, not just for what they know themselves, but often for the people they know who could help you. Their mindset. Another leverage point that makes the rich richer is the way they think - their mindset.  They just think differently to the average person.  The not so rich have a different reality to the wealthy.  To put it simply, your reality is what you think is real, which means your perception is your reality.  So if you want to truly become wealthy, you're going to need to open your mind to a whole range of new ideas.  They own the right assets. When you look at the various rich lists you’ll find that most wealthy Australians have either made their money through property or if they’ve made it through other business ventures they invested the bulk of their money in real estate. Choosing the right property, owning it in the right structures, financing it correctly so that you can use more of other people's money, using the tax laws wisely to pay minimum tax and understanding the law to protect your assets, vastly accelerates your wealth creation.  Here's another interesting thing about these wealth accelerators… Combining two more of them doesn't just speed up the growth of your property investment business incrementally. It helps grow it by quantum leaps. So now you understand the wealth acceleration secrets of the rich. We’re moving less often Some of the highlights from my chat with Pete Wargent: Research has shown that homeowners are hanging onto their homes for longer than they used to Even though young people might be changing jobs more frequently, they tend to hang onto their homes The longest tenure is for houses in Sydney and Melbourne The costs of buying, selling and moving discourages people The population is aging, and Baby Boomers are staying in their homes as opposed to downsizing or moving into retirement homes There are limited medium-density homes for retirees Links and Resources:  Michael Yardney Pete Wargent  Next Level Wealth  Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us  Join us at Wealth Retreat 2020 –find out more here Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: 7 Wealth accelerators the rich use to get richer | We’re moving less often – Pete Wargent Some of our favourite quotes from the show: “Successful property investors make the most of their time by leveraging other people's time.” – Michael Yardney “When you become aware of the tax laws and the deductions, you can maximize your income and legally minimize your tax.” – Michael Yardney “The fact is, what stops many people from becoming successful isn't what they don't know. It’s what they think they know, which actually isn't so.” – 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 much will property prices fall during the recession?  There’s no doubt that turnover of property sales is dropping, and yes properties in some areas are falling in value.  But will they drop 10%, 20%, 30% like some people are suggesting? Which headline do you even start to believe?  Well, let’s not worry too much about the headlines, because today I’m going to have a chat with Stuart Wemyss and we’re going to give you evidence-based facts about what could happen so you’ll have a better understanding about what’s going to happen to unemployment and property prices and what you can do to weather the storm from a finance perspective.  Some Topics that Stuart and I Discuss: While it makes sense that higher unemployment could affect property, when you look back, there is no historical relationship between higher unemployment and property prices. Property values have risen fast after previous downturns, while unemployment has lingered. The best approach to property is to take a long-term view The fundamentals and basic concepts of property haven’t changed Transaction volumes have dropped, but so far property prices are holding Is timing important when it comes to buying a property during a downturn? The value of investing in an asset that provides most of its return in capital growth instead of income There will be a lot of negative noise around the property markets This can cause people to avoid making decisions Why Stuart wrote a book on finance Links and Resources:  Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s article - Property market expectations & the impact of Coronavirus Stuart’s Book – Rules of the Lending Game Shownotes plus more here: How much will property prices fall during the recession? With Stuart Wemyss Some of our favourite quotes from the show: “It’s really hard to be greedy when others are fearful when you keep getting the negative messages.” –Michael Yardney “People ask me, “Michael how has your strategy changed for the current circumstances?” The answer is, it hasn’t.” – Michael Yardney “I believe you’ve only got the right to say financial wealth is not worth it after you’ve created 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

Success is no accident.  The most successful people in life may not always seem like they have much in common.  How are The Beatles similar to Steve Jobs? Or Warren Buffett and Shane Warne? But when their traits, habits, and work ethics are distilled down, these unlikely characters share many similarities. They do the work, they turn up, they believe in themselves and sometimes, they even wear the same clothes. In today’s Build a Business not a Job Podcast I chat with Mark Creedon, founder of Business Accelerator Mastermind about a dozen techniques to triumph. Drive – know where you’re going Whether it is the drive to be the best in the world at a specific skill – spin bowling – or the passion to build the most user-friendly tech experience at Apple, successful people are focused on their end goal. Proven losers Once people have the ability to spring back from their losses, they are more able to take the risks and challenges life inevitably throws out. And once that mindset is in place, coupled with a focus on achievement, a loss can create a gain. Let others do their part There is a necessary time to allow others into the business and to allow them to do the job in their way. By allowing others to take the load and share their knowledge, the outcome can be greater than the sum of its parts. Avoid distractions – from their goal and in daily life Achieving a distraction-free state of flow is the best and most efficient way to work and get things done. Communicate. Without it, ‘It’s like winking at a girl in the dark’ Berkshire Hathaway founder Warren Buffet says communication skills are the most important traits for success. “If you can’t communicate, somebody said, it’s like winking at a girl in the dark,” he says. “Nothing happens.” Break the mold Successful people are often willing to stand out. Test cricketer Stuart McGill says spin legend Shane Warne “broke the mold” in cricket, not only with his spin action but also with his off-field antics. This pairing of performance and personality brought new followers to the game. Think on your feet The ability to be agile and take chances – even if they fail – is a key habit of the successful. Let’s do it People who thrive see the outcome. They determine a course of action and set their minds to achieve it.  Routine is a common element for those who succeed. Yes, yes, yes, no. Make the decision Successful people are decisive.  They may not always be right, but at least they make a decision, which allows for a speedier process and new possibilities. ‘Done is better than perfect’ This leads on from decisiveness. The philosophy is about achieving small steps, not about sacrificing quality. As there is no such thing as perfection – which is different for different people – many successes consider milestones and progress more important than a mythical ideal. ‘I get knocked down, but I get up again’ Resilience is considered the most important characteristic for success. People will inevitably get knocked down, criticised, rejected, or considered wrong, but with stamina and grit, many people overcome. Old-fashioned hard work, turning up every day, gets results. T-shirt and jeans Many successful people have systematized their life to strip back distractions.  By either planning ahead or making a routine of everyday tasks, they can reclaim time and energy to think about other outcome-focused enterprises. Links and Resources:  Why not join Metropole’s Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia’s leading entrepreneurs  Join us at Wealth Retreat late in 2020 in join- find and more and register your interest here  Shownotes plus more here: 12 habits of highly successful people with Mark Creedon | Build a Business, Not a Job Podcast Some of our favourite quotes from the show:  “I think one of the worst things that can happen is to get it right the first time.” – Michael Yardney “I think one of the traits of successful entrepreneurs, businesspeople, professionals, is that they get going knowing they don’t know it all, but they know enough to get going and understand that they’re going to learn the rest along the way.” – Michael Yardney “It’s just too hard to do it on your own.” – Michael Yardney  PLEASE LEAVE US A REVIEW  Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

The coronavirus crisis has transformed our markets back to buyers’ markets. But does that mean it’s a good time for you to buy property?  That’s what I’m going to discuss in today’s show, and in quite some detail.  Of course, like with most things in property, the answer is that it depends.  Are you buying a new home or an investment property? How secure is your job? How easy is it for you to get financing?  I’ve got a couple of interesting concepts that I’ll discuss during the podcast, but let me answer the question: yes, it’s a good time to buy property if you’re one of the lucky ones who remains financially secure.  Because if you buy well now, you could set yourself up for the growth that’s certainly going to come later this year.  But there are a lot of ifs and buts and maybes between now and then.  In this episode, I’ll give you more detail about what I see happening to the property market in the short and long-term, as well as some lessons we can learn from previous downturns. Hopefully, at the end of this episode, you’ll have some more clarity about what’s ahead.  What’s ahead if you decide to purchase property? Is now a good time to buy property? Should I hold off and wait for property values to fall further? What’s ahead for our economy and the property markets as Australia falls into recession? These are the type of questions I’m regularly answering for our clients at Metropole and for the many journalists who have been asked me for my opinion. And what I have been telling them is that our economy started the year with a little cold that progressed to the flu and now looks more like we have a case of economic pneumonia. What’s next? Based on my perspective having been involved in the property market for over 45 years, I believe the impact of this on our property market will ultimately be temporary.  Now, this view may be a little different from what others who are forecasting that property values will drop anywhere from 10 percent to 30 percent; but remember …this too shall pass. What will happen to our property markets will depend upon how long we are in lockdown, how soon our economy picks up, the level of unemployment, and importantly the level of consumer confidence coming out of our recession, which will be a good barometer of all the above factors. Of course, if Australia experiences are multiyear downturn, caused by the world economy imploding, then, of course, property values would drop considerably. I know some doomsayers are predicting this, but these are not the type of forecasts made by the credible economists I have been following. What will be the short-term effects of coronavirus on Australia’s housing markets? Clearly our housing markets won’t be immune to the Coronavirus economic fallout, but the impact on property values will depend on how long it will take to contain the virus. Transaction levels will be significantly impacted over the next two to three months with discretionary sellers staying out of the market. It really makes no sense to put your property on the market for sale at this time unless you really need to. However, there will always be nondiscretionary buyers and sellers who do need to transact over the next little while. It is likely that sellers will discount the price of their properties to conclude a sale, while buyers will take advantage of this to nab a bargain But this doesn’t mean property values will plummet. In fact, as an asset class, bricks and mortar has performed exceptionally well during previous economic shocks. This time around, with the banks giving mortgage deferments or holidays, it is unlikely that we will have a large number of forced or mortgagee sales that could undermine market confidence.  Many commentators are trying to compare the current markets predict how the current markets are going to perform based on how our property markets performed during previous economic downturns such as the Global Financial Crisis in 2008 or the recession of the early 1990s.   However, unlike previous downturns that were essentially financially lead, this downturn is a medical problem that morphed in an economic issue because of a short-term shutdown of our economy which has led to a supply-side downturn (even though we’d like to, we can’t go out and buy goods as their supply is limited because the shops are closed) rather than a lack of demand-driven downturn. Because of this and based on the predicted pace of the post-recession recovery, I would expect the pandemic to have a more limited and shorter-lived impact on house prices than either the early-1990s recession or the Global Financial Crisis.  What does this mean for property prices? In the short term: “Investment-grade” properties and A grade (above average) homes could fall in value by around -5% B grade (average) homes could fall in value by up -10%, C grade (less than perfect) will be the hardest hit as there will be a flight to quality. 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 investment 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. This should support a return to stronger levels of price growth in the medium term. What will happen to property markets in the long term? The largest and most direct industry shocks from the coronavirus are expected in: Tourism, local restrictions will ease up before and overseas travel restrictions may take some time to lift; Hospitality, where social distancing leads to a decline in café, bar and restaurant patronage; Education, due to fewer foreign students being able to travel; Retail, which will be dragged down by low consumer confidence levels; and, Recreation, theatres, cinemas, and art galleries have closed down. However, I’m comfortable with the underlying long term fundamentals supporting our property markets in the medium to long term.  So is now a good time to buy property? With property prices and competition falling away, the short answer is yes — if you’re one of the lucky ones who remains financially secure. One of the major lessons I have learned from previous downturns is the importance of taking a long-term perspective which always outsmarts short-term reactive thinking. And for mine, it’s always property fundamentals that really matter and drive our markets in the long term. 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: Is now really a good time to buy property? Some of our favourite quotes from the show: “We’re currently experiencing something like a terrorist attack which has delivered a short sharp blow to our economy rather than experiencing a long drawn out war.” – Michael Yardney “But the economy is likely to rebound at the end of this year, in the 4th quarter of this year or early next year, at which time we are likely to experience a perfect storm for property.” –  Michael Yardney “There is no doubt there will be opportunities in the market for those who are willing to go against the crowd.” – 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

My special guest today is Robert Kiyosaki author of the best-selling book  Rich Dad, Poor Dad. When Robert’s team reached out to me and asked me if I’d like to have him as a guest, I jumped at the opportunity, because I heard that he’s got a message that he wanted to share with Australians about the challenges for our economy ahead, and the opportunities on the other side of the downturn.  Now, I don’t agree with everything he has to say, but I respect that he’s taught millions of people about the basics of financial literacy, so I was keen to hear his opinions.  You’re going to enjoy the conversation as we talk a bit about his basic financial concepts before we get into deeper topics.  Although I don’t agree with everything Robert says, I thought I’d give him the courtesy of the airtime he deserves, then after my chat with him, I’m going to share my views.  So, be sure to listen to both sides of the discussion, and then you’ll be able to use that to inform your own views. Topics that Robert and I discussed: Why so few people are becoming financially independent Robert’s advice to people taking on too much debt The shadow banking system The Cashflow Quadrant What’s ahead for the average Australian’s financial future How bad Robert thinks the crisis is going to get Whether Robert’s predictions have become more pessimistic over time The upside Robert sees on the other end Factors other than resilience that it takes to be a successful entrepreneur Whether today’s technologies make it easier to get started in business What Robert thinks will happen to house prices in the capital cities Robert’s thoughts about superannuation What it was like dealing with Donald Trump before he was president Michael’s Thoughts on Robert's Interview Clearly Robert knows a bit about real estate in the United States, where the rules are very different, where the tax regimes are very different, where the markets are very different, where the way you invest is very different.  In previous podcasts, I’ve explained why Australian real estate is different from overseas, but many overseas gurus just don’t get it. In Australia, property markets are underpinned by the fact that 70% of properties are owned by homeowners, and half of them don’t even have a mortgage against their properties.  Of the other half, many are well ahead in their payments, while others are using their mortgage to support the purchase of investment properties that bring cash in. This is very different to overseas.  Australia really doesn’t have a debt problem – at least, not when it comes to real estate assets. Robert also suggests that your home is not an asset – meaning that it doesn’t bring money in, only expenses going out, so it’s a liability. And if you accept his definition of an asset, he’s right.  But that’s not my definition of an asset. It’s also not the common definition of an asset.  I believe a million dollars is an asset if you have it sitting in a bank, or even if you take it out and put it under your mattress. It’s an asset even with no cashflow.  Robert is a cashflow investor, and that’s what’s appropriate for the tax rules and the system in the United States, but it has not made people wealthy in Australia.  There are four ways to make money on residential real estate in Australia:  capital growth,  rental return,  tax benefits, and  manufacturing growth through renovation and development.  The most important of those is tax-free capital growth. Unfortunately, too many people look for cashflow from their residential real estate investment, and that’s just not how it works in Australia.  Similarly, Robert’s concerns about our superannuation funds not being fully funded are just not accurate. The average superannuation fund that you and I are part of are fully funded.  There’s no doubt that Australia’s economy, and that of most countries in the world, will experience a recession.  But currently, a combination of monetary and fiscal policies should see us start to rebound in the third or fourth quarter of this year. Robert an innovative thinker and an expert in personal finance, but he’s not an economist.  We have some very astute economists employed by our banks, by the Reserve Bank of Australia, by the International Monetary Fund, and they all see a difficult six months ahead, but nowhere near as negative as the naysayers grabbing headlines at the moment.  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 Robert Kiyosaki’s Australian virtual seminar Shownotes plus more here: Robert Kiyosaki Interview – Do what the 99% are not doing! Some of our favourite quotes from the show: “I wouldn’t invest the way the way I invest in Australia in New Zealand, where the rules are very different, or in the United States.” – Michael Yardney “I’m not suggesting that there’s a bubble in Australia, and I think those who think there are, are probably wrong.” – Michael Yardney “In Australia, residential real estate’s a high-growth, relatively low-yield investment, and to try and make it something different just bastardizes 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

There are many definitions of what it means to be rich.  In today’s podcast, we’re going to discuss the #1 factor that makes poor people rich.  Being rich is more a state of mind than a dollar amount, though – the rich can be poor and the poor can be rich.  Being rich is really more about having what you want and being able to enjoy your wealth.  You need a sense of balance, and true wealth isn’t about money or how many properties or shares you have.  You need your health. You need time to enjoy and appreciate things. You need somebody to love and someone to love you. You’ve got to have the ability to give back to the community. You need spirituality. You need to be able to grow and learn.  In these podcasts, I talk a lot about money, but money isn’t a zero-sum game.  One person’s wealth can’t stop you from becoming wealthy as well.  And in today’s episode, you’ll hear more about building the habits that can help you become wealthy.  How can poor people become rich? If no poor person on the face of the earth ever rose from poverty to wealth, you might have a case that it’s impossible to become rich if you were born and raised poor. But, reality paints a very different picture. There are thousands of poor people every day who become rich.  According to Forbes Magazine, just in America, there are approximately 1,700 working-class people a day who become millionaires. And, according to Tom Corley’s Rich Habits study, 41% of the 177 self-made millionaires he studied were born and raised in poverty. What was the #1 factor that helped them shake off the chains of poverty and become wealthy? Changing their daily habits. Changing your habits can be hard, especially if you don’t know how.  Here are some short-cuts to changing habits. Habit Merging When an old habit does not perceive a new habit as a threat, it does not wage war against the formation of the new habit. Law of Association Old habits can be triggered by the individuals you associate with. If you are trying to get rid of some old, bad habits you need to limit the time you spend associating with those individuals who act as a triggers for those bad habits and begin associating with individuals who possess the new good habits you are trying to adopt. You can find these new individuals in network groups, non-profit groups, trade groups or any group that is focused on pursuing similar goals. Changes in Your Environment It is much easier to abandon old habits and form new habits when your environment changes.   New home, new neighbors, new friends, new job, new colleagues, new cities, etc., all offer an opportunity to forge new habits. When your environment changes, you are forced to think your way through each day. Start Small It is far easier to change your habits if you start with small habits. Small habit change involves adding habits that require very little effort.   Examples include drinking more water during the day, taking vitamin supplements or listening to audiobooks while you commute to work. Schedule Your New Habits Sixty-seven percent of self-made millionaires in my study maintained a to-do list. To-do lists are a way of processing success into your life.   One of the tricks self-made millionaires use is to incorporate certain good daily habits onto their to-do list. Firewall Your Bad Habits One trick to habit change is to make it harder for you to engage in a bad habit by creating some type of firewall between you and the bad habit. Links and Resources:  Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits  Join Michael Yardney and Tom Corley at Wealth Retreat 2020 – click here and register your interest Wondering what’s ahead for our property markets? Organize a time to speak with the team at Metropole by clicking here   Shownotes plus more here: The #1 factor that makes poor people rich | RICH HABITS, POOR HABITS  Some of our favourite quotes from the show:  “At no other point in history have so many people escaped bitter poverty in such a short time as in China.” – Michael Yardney “Small changes give you momentum. They increase your confidence.” – Michael Yardney “I think the message is, if other people can do it, you can do it.” – Michael Yardney PLEASE LEAVE US A REVIEW  Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.  

We’re heading for the biggest crash since the great depression and it’s just around the corner, according to Harry Dent. He’s doing a virtual seminar telling anyone who’s prepared to listen that we’re headed for a stock market crash, a major depression, and the value of your home dropping 40-50%. Today we’re going to have a chat with Harry Dent, and I’m also going to have a talk with Pete Wargent.Before we get into the interview, a word of warning. Especially for the fainthearted. Harry makes some really scary predictions. Please listen to the whole interview, and don’t sell up your assets before you listen to my views and Pete Wargent’s.  Topics Discussed With Harry Dent Why Harry thinks that we’re approaching an economic winter with fallout worse than the Great Depression Why Harry believes we’re in a bubble Whether bubbles have to burst – can’t they just deflate? What the demographics are indicating will happen next to our economy The trigger that will burst the bubble Whether Harry believes there are safe ways to invest What business owners should be doing right now What Harry sees happening to the property market in Australia How immigration underpins Australia’s real estate market The upsides that Harry sees on the other side of the downturn What Harry would say to people who heard his previous predictions The message that Harry has for Australians in his virtual seminar Topics Discussed With Pete Wargent What a bubble really is and what happens when one bursts Whether the average Australian household has taken on too much debt The government’s current response to the crisis What the government has learned from previous downturns When the recovery will begin How Australia’s demographics compare to other countries The soundness of Australia’s banking system What could cause a collapse in the value of property in Australia Australia’s culture of homeownership Where there are likely to be the most difficulties in the property market 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 Harry Dent’s website Harry Dent’s Australian virtual seminar Pete Wargent  Next Level Wealth  Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: Will the bubble burst or do we burst Harry’s Dent’s Bubble? | Interviews with Harry Dent and Pete Wargent Some of our favourite quotes from the show: “Well, we have some features of a bubble, yes, but we’re actually not in a bubble.” – Michael Yardney “Here we’ve got 70% of properties owned by homeowners, half of them without debt, and those of them that do have debt, it’s in the hands of those who can afford it.” – Michael Yardney “In the rest of the world, a lot of people expect to be tenants all their life; here in Australia people would rather eat dog food than give up their homes.” – 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 has clearly infected Australia.  And it doesn’t discriminate rich or poor, young or old.  I heard it said that we are all in the same boat.  But it's not like that.  We are in the same storm, but not in the same boat.   Your ship could be shipwrecked and mine might not be or vice versa.  For some, quarantine is optimal. A moment of reflection, of re-connection, taking life easy, or having a cocktail or coffee.   For others, this is a desperate financial & family crisis.  For some that live alone, they're facing endless loneliness. While for others it is peace, rest, and time with their mother, father, sons, and daughters.  Some are getting money from the government through JobKeeper and JobSeeker while others are working more hours for less money due to pay cuts or loss in sales.  Some want to go back to work because they don't qualify for unemployment and are running out of money. Others want to kill those who break the quarantine.  Some are home spending 2-3 hours a day helping their child with online schooling while others are spending 2-3 hours a day to educate their children on top of a 10 to 12-hour workday.  So, we are not in the same boat. We are going through a time when our perceptions and needs are completely different.  Each of us will emerge, in our own way, from this storm. It is very important to see beyond what is seen at first glance. Not just looking, actually seeing.  We are all on different ships during this storm experiencing a very different journey. And in today’s podcast, I want to chat about how the coronavirus crisis is going to affect different demographics and generations with leading demographer Simon Kustenmacher. As always you’ll find my chat with him educational, informative, and lots of fun, so welcome to today’s episode of the Michael Yardney podcast. Topics We Discuss in This Episode: We will see a slowdown of migration intake for at least two or three years Australia will have 0 net migration or negative net migration for 2020 Migration was the main driver for the housing market, so this will have a major impact on property The small towns will be hit first – bad news for regional Australia Temporary visitors like students or short-term workers will be affected as well. This, in turn, affects the short-term rental markets, like student accommodations and Airbnbs.  Regional Australia is somewhat reliant on temporary workers, so this is more bad news for them Different generations will be affected differently Baby boomers who are now about to retire will see their super balance shrink by 20% or more Some may have to put off retirement Holidays overseas are also probably canceled for some time to come Local tourism may be on the rise, which may be beneficial for Australia Baby boomers may find themselves supporting adult children who have lost jobs Gen Xers will probably suffer a lot from the coronavirus Xers are at a time in their life when they’re most likely to be overextended and spending every penny they earn Millennials are in a better position to ride out the next few years They’re reaching family formation stage of the life cycle More likely to have jobs where they can work from home and will want homes that allow for that. Millennials will need larger homes They may look for homes in the suburbs or in satellite cities Gen Z is concerned with global issues They’re in a position to ride out the pandemic and recession before kickstarting their career The pandemic may be the kickstart needed for working from home to happen on a large scale Links and Resources:  Michael Yardney 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. Simon Kuestenmacher - Director of Research at The Demographics Group Follow Simon on YouTube Shownotes plus more here: We’re all in the same Coronavirus storm, but not in the same boat. Who will be hit the hardest? With Simon Kuestenmacher Some of our favourite quotes from the show: “Economic growth comes, I guess, from certain efficiencies and producing things more.” – Michael Yardney “Even though we all think we’re unique and different and special, we’re really all much the same as others.” – Michael Yardney “Humans aren’t logical. We believe we’re rational, but we’re not, and at the moment emotion is driving a lot of what we’re doing.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

2020 usually refers to someone with perfect vision, so it’s ironic that in 2020 we have such a poor picture of what lies ahead of us. We’re moving through challenging, interesting times.  We’re making history as we work through the coronavirus crisis and how it’s affecting our lives, our economy, and our health.  But to give some clarity on what could be ahead, I’m going to have a chat with property researcher John Lindeman, who’s got some interesting thoughts about what’s going to happen in the short term and what’s going to happen in the medium to long term.  We’re going to talk about what’s happening in the rental market, what’s going to happen to property prices, what’s going to happen to the supply and demand ratio, and how the rush for toilet paper relates to property prices.  You see.. Many of us were amazed by the recent scenes of people stampeding to buy toilet paper, and some of us may even have joined the frantic rush to grab a few rolls before supplies ran out. Supermarkets were left without toilet paper for weeks afterwards and with toilet paper supplies only now slowly returning back to normal, many of us are left wondering “What was all that about?” This event was a classic “self-fulfilling prophecy”, which is when the prediction itself causes the result. The same kind of panic buying events can also occur in the property market. It starts when we hear about certain locations where properties are selling faster. We are urged to be quick or miss out. As more investors rush in to buy, they create the shortage that is being predicted. This is why you need to make sure that any property opportunity you are interested in is backed by actual rental or owner-occupier demand, not just by speculative demand. The COVID-19 pandemic will likely result in significant changes to our housing markets. But you also need to keep in mind that the short-term impacts are likely to be very different from the long-term outcomes. Property markets where buyer demand is falling right now include those relying on tourism, short-term accommodation, and recreation. Markets at risk from falling rents are short-term business, holiday, Airbnb, and student rental locations. This has caused owners of short-term rental properties to list them as longer-term rentals instead, which is leading to a rise in rental vacancies. Rent could fall in some locations as a result. However, this is also likely to be short-lived, because restrictions on movement and assembly are lifted, these markets are likely to bounce back quickly. We expect a general surge in housing demand to occur after the current crisis is over and the restrictions on movement and assembly are lifted. Rental demand will rise as tourism and holiday markets recover and we will experience an influx of migrants from other countries. As a result, many suburbs will experience excellent growth, with buy prices right now at their lowest. 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 Reports Shownotes plus more here: The correlation between the toilet paper panic and property prices | John Lindeman Some of our favourite quotes from the show: “Migrants come in and they buy refrigerators and televisions and carpets, and they grease the wheels of industry.” “It’s easy to forget that even though the external circumstances are different, the downturn in the property cycle is a normal part of the cycle.” “The first major lesson in life to learn is how to handle the winters.” PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

With so much uncertainty around us, we’re even more keen to get a level of certainty.  But let’s be honest, we’re pretty terrible at working out what’s going to happen in the future.  When the future doesn’t cooperate, we spend even more time trying to change the next bit of the future so it winds up more like what we were hoping for.  But no matter what you do and how stressed you get; the future is going to take care of itself.  Having said that, I am going to spend a little time trying to predict the future with Pete Wargent today.  But I want to go beyond the recession we’re going to have and take a look at what life might be like after the recession.  Clearly the past couple of months have been a period of immense uncertainty.  And despite the actions of governments and banks, 2020 is now expected to see a sharp decline in GDP.  The world is going to go into recession. Australia is going to go into recession.  But at some point, we’re going to cross that bridge, the virus will be under control, and things will go back to normal.  But what will normal look like? Will it be the same, or will it be different?  That’s what Pete Wargent and I will discuss today.  Some of the topics we discuss: We might be able to start easing restrictions sooner than we’d feared.  Any way you look at it, we can expect low-interest rates for a long time to come.  The low rates won’t apply to every product, but new borrowers will see the lowest mortgage rates they’ve ever seen.  Governments all over the world are piling on new debt.  Australia is now borrowing at the lowest rates in history and we’re relatively well-placed. Once we cross the bridge, the government will have to do other things to get the economy moving again. The government will need to create jobs, infrastructure projects, healthcare projects. Some people will probably need to stay in the workforce for longer.  The government is hoping this will be a business-led recovery, and that the budget will be balanced just by getting the economy moving again.  The media has changed. People are turning to different sources. There are fewer hard-copy publications and more internet sources. Retail is going to be different. We were moving to online retail anyway, but this will speed up the transition. Tourism is changing. There are going to be fewer departures, more staycations, and holidays at home.  Resources and commodities may go through a boom.  People are going to be working from home more. This may lead to a change in the type of properties they want to live in.  People will want more spacious properties with room to work.  Links and Resources:  Michael Yardney Pete Wargent  Next Level Wealth  Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us  Join us at Wealth Retreat 2020 in October  –find out more here Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: What will our economy look like after the Coronavirus led recession - with Pete Wargent Some of our favourite quotes from the show: “There are always opportunities that occur during a downturn.” – Michael Yardney “I think we’ve also changed who we trust when it comes to looking for relevant, for factual information. We’re going to different sources.” – Michael Yardney “The trend of living in big cities is going to continue, but maybe the sort of properties we’re going to live in will be a bit different.” – 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