Property Investment, Success & Money | The Michael Yardney Podcast

Have you noticed how the desire for economic forecasts surges right when our ability to accurately forecast plummets?  That’s really the case today. In today’s show, I’m going to tell you what I say when people ask what’s going to happen to our property markets, and my answer may surprise you.  Then, I’m going to have a chat with Dr. Andrew Wilson about who’s going to pay for all the government benefits and handouts.  I’ll also share a mindset moment about how you’re making history right now.  By the end of today’s show, you’ll hopefully have some more clarity about your economic future.  What’s going to happen to property? The truth is, I don’t know. But there are some things that are certain.  In 12 months’ time, it will be April 2021.  At some point, we will pass a line that I called the Survival Line.This Survival Line will occur when people’s level of desire to move forward overtakes their fear.  On the other side of that survival line will be many opportunities to thrive. Not just in property but in business as well. Property investors, business owners, and entrepreneurs seem to be thinking in one of three different ways: Fear focused: Those who are fear focused are panicking. They think the world is coming to an end. They are closing businesses or selling investments. They can’t see a future for themselves or their businesses. They won’t make it to the survival line, which may sooner than they think. Hibernation mode: People in hibernation mode bunker down. They buy rice, pasta and toilet paper. They want to stay low to ride it out. They will cross the survival line but will experience lots of ups and downs in the meantime and lose a year or so of their life in the process. Positioning themselves for the future: The property investors, business owners, and entrepreneurs who are positioning themselves for the future are those who realize that there is a strategic window between now and the survival line where they can get themselves set up to take advantage of the opportunities that always occur after a severe downturn. In which of these three groups of investors do you want to be? Who’s going to pay for the government handouts with Dr. Andrew Wilson Right now, the government is throwing money at everything and anything in the hopes of keeping the economy afloat. But at some point, the lockdown will end and the handouts will stop. Then what happens? Who’s paying for all the government handouts? Some of the topics we discuss: Where the money is coming from for the various stimulus packages meant to keep businesses afloat and help ordinary Australians keep food on the table What “quantitative easing” really means Whether the debt created by these stimulus packages will be paid back Whether government stimulus packages will lead to inflation down the road Links and Resources:  Michael Yardney Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au  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: I really don’t know what’s going to happen to property + Who’s going to pay for the government handouts with Dr. Andrew Wilson Some of our favourite quotes from the show: “I know that what we’re going through currently is temporary, like every other crisis we’ve been through before.” – Michael Yardney  “By the way, here’s another certainty. On the other side of that survival line, there’s going to be great opportunities.” – Michael Yardney “At the moment, you may feel stuck at home, but at least you’re safe.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What drives property price growth?  That’s what I’m going to discuss in today’s episode.  Then I’m going to have a chat with Kate Forbes about the surging population growth in Melbourne.  Melbourne is likely already Australia’s largest capital city.  That doesn’t mean you can invest just anywhere in Melbourne, but we’re going to give you some ideas of what to look for when you’re considering where you should be investing.  What drives property price growth? Some people say that supply and demand drive price growth.  But in my mind, that’s too simplistic. There’s more to it than that.  Let’s take a look at the macro effects that drive the general property markets.  Household formation: This is how many new households are being formed and the demographics of those households.  Land component: Not all land is created equal. Some land is more valuable than other land. It doesn’t matter if there’s a property on the land – you need to look at the land-to-asset ratio Affordability: This doesn’t mean cheap property. Affordability refers to the flow of money – interest rates and money supply. The economy: The economy creates jobs, and jobs create people who can afford to buy homes and upgrade homes.  Market sentiment: How people feel about the market. Worries about the market cause potential buyers to sit on the sidelines.  Past performance: Recent past performance isn’t as important, but long-term past performance can tell you what future performance will likely look like.  The returns: What sort of capital growth, rental incomes or alternative investments you can get.  The X factor: Unexpected events that drive our markets.  Is Melbourne already Australia’s biggest capital city? The latest forecast suggests that Melbourne’s population is going to overtake Sydney’s sooner rather than later. But maybe this has already happened.  How is this possible?  There are different definitions of what the boundaries of the capital cities are. Some definitions include the Central Coast in the Sydney population count, but leave Geelong out of Melbourne’s population count.  Remove the Central Coast, and then Melbourne already has a higher population than Sydney. Even with the given definitions, though, Melbourne is on the way to having more people than Sydney by 2026. Why has Melbourne done so well? There are a few reasons: It’s consistently rated one of the most livable cities It’s had significant economic growth, which means more jobs It’s one of the more affordable cities Links and Resources:  Michael Yardney Kate Forbes – National Director – Property Strategy at Metropole Organize a time to speak with Kate Forbes or her team at Metropole by clicking here   Shownotes plus more here: These are the factors that drive property price growth | Is Melbourne already Australia’s biggest capital city? Some of our favourite quotes from the show: “When fear or greed comes into the market, when investors come into the market, we get these big swings.” – Michael Yardney “If you fast-forward four years, Melbourne’s population is going to increase about 10%” – Michael Yardney “Buy the best property you can afford. No question about that.” – 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 world completely changed a month or two ago.  You’re socially distancing, you’re washing your hands a lot more, you’ve been sitting at home in quarantine for how many days now? Maybe you’ve lost count.  How are you going to take advantage of this time?  When you find yourself struggling through times of uncertainty, like we all are right now, you’ve got a choice to make. Are you going to be a victim of circumstance or a warrior for growth?  That’s what we’re going to discuss in today’s podcast, which is a joint episode between my podcast and The Elephant in the Room podcast.  Change doesn’t mean you have to accept a fate you don’t want. This is the time to focus on taking advantage of the opportunities that are going to arise in our property markets when we get to the next stage – when we cross that proverbial bridge. In today’s podcast, we’ll be discussing wealth, property, and finance with Chris Bates and Veronica Morgan, the hosts of the Elephant in the room podcast.  Some of the Topics We Discuss: We’ve survived market downturns in the past. That experience is valuable. Learning from prior experiences can help us get through this one.  In times of uncertainty, some things are certain. For example:- In 12 months’ time, we’ll be in April 2021.  Somewhere between now and then, we’ll come to a survival line. Once we cross that line, desire and greed will overcome fear. Fear is holding a lot of people back, but that won’t last.  There are risks that buyers and sellers need to be thinking about right now. For example, loan preapprovals from before the coronavirus are now invalid. Certain sectors of the market are going to suffer more than others.  Immigration is probably going to slow down for a while but will pick back up in the long run. People want to come to this country, so we can afford to be selective.  Some industries, such as the travel and manufacturing industries, are probably going to be different after this.  Some attitudes toward homeownership may change. There could actually be more owner-occupier demand. People may also want different sorts of homes. If working from home is working out for most people, we may need fewer office buildings and homes with more at-home workspace.  Our attitudes toward debt may change. Some may not want to buy a new car or upgrade their home, because they’d rather avoid debt.  The density in Sydney CBD is as high as it is in Wuhan. People may not want to live in those high towers anymore.  People may have more choices about whether they work from home or in the office in the future. The biggest risk in development lies with the investor. The less experience an investor has, the bigger the risk.  Links and Resources:  Michael Yardney Chris Bates  – Wealthful Veronica Morgan – Good Deeds Buyers Agent The Elephant in the Room Podcast Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Show notes plus more here: Don’t believe everything you hear about property - with Veronica Morgan and Chris Bates Some of our favourite quotes from the show: “If you’re going to look for bad news, you’re going to see it, but if you look for good news, there’s also a lot of good news out there in the medium to long term.” – Michael Yardney “There is a segment of the market that’s overcommitted, but overall, the fundamentals are strong with owner-occupiers usually in good financial condition.” – Michael Yardney “That’s what people are paying us for in these uncertain times. To give them some clarity. To give them some direction. To give them better results.” – 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 world completely changed a few weeks ago.  Most of us are locked down with social distancing policies.  How many days have you been at home now? Are they starting to blend together?  But it’s times like these when focusing on your personal and business growth becomes more important than ever. And that’s what we’re going to talk about today.  Even if you don’t have a business and you’re not an entrepreneur, though, if you want more success in your life, today’s message is relevant for you too. The Imperative Nine In troubling times of high levels of anxiety and uncertainty you need structure, then more than ever.  Here are nine things you can focus on, practical steps you can take to help navigate your way through these confronting times, to help you cross that bridge to the inevitable upturn.  We call them the Imperative Nine.   Your Team is Afraid This is a time when you need to focus your efforts and actions on others. As a leader, it is imperative that your team see you as in control and on the job. They need to know that there is someone (you) at the helm and steering your organization through turbulent waters.    Your Clients are afraid In times of commercial upheaval and uncertainty your clients will be afraid. They will be afraid for their families, their work, their business and the future in general. You may not be able to remove that fear completely but again you may be able to normalize it.  The Public is afraid. As a business owner, the community will look to see what you are doing, what confidence you have and remember this, you can’t complain about a lack of consumer confidence if you are part of feeding that lack.  Risks have to be minimized In every situation like this there are clearly identifiable risks. There are always some unknowns as well but now is a time to critically examine your business, understand the risks which have and will come from the current situation and work to minimize them. Information needs to be accurate and limited It is important that you stay up to date but if you took to heart every piece of news that the mainstream media delivered you would soon be completely overwhelmed.  Opportunities abound Whatever your business, there will be some opportunities out of the current situation. It is your job to identify them and then act on them.  Pivot your message The message you are putting out to your clients and prospects now has to match the current climate.  Have a communication plan Good communication in business never just ‘happens’. It is a part of a plan and a schedule.  Make it Proactive Sitting back waiting for the phone to ring or emails or messages to come to you is a useless strategy in the best of times.  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   Show notes plus more here: https://propertyupdate.com.au/podcast-9-things-business-owners-should-be-doing-about-coronavirus-but-are-not-build-a-business-not-a-job-podcast/ Some of our favourite quotes from the show:  “You’ve got a choice to make. Are you going to be a victim? Are you going to be a victim to the circumstances, or are you going to be a warrior for growth?” – Michael Yardney “It’s what you do now that’s going to determine how successful you are when we cross that survival line.” – Michael Yardney “I’m giving as much free information as I can. I’m not looking for something in the short-term. I’m playing the long-term game.” – Michael Yardney  PLEASE LEAVE US A REVIEW  Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Did you know that as investors and even as entrepreneurs or businesspeople we can sometimes be our own worst enemy? It’s not because of the decisions we make, the opportunities we consider or the investments we miss out on, but rather, it’s due to the way we think. It’s because of our Cognitive Biases. You see, most of think we’re rational people. But we’re not. There is no shortage of cognitive biases out there that can trip up our brains. Cognitive biases are patterns of thinking that don’t rely on logic.  And if you don’t check your reasoning, they can lead to judgements and decisions that negatively impact your business. You can’t eliminate them all, but you can become more aware of how they function and ways to counteract them. And that’s what I’m going to discuss today with Pete Wargent Types of Cognitive Bias Confirmation bias People tend to search for information that confirms their view of the world and ignore what doesn’t fit.   In an uncertain world, we love to be right because it helps us make sense of things. We do this automatically, usually without realizing; partly because it’s easier to see where new pieces fit into the picture puzzle we are working on, rather than imagining a new picture. Confirmation bias also prevents us from looking objectively at an investment we’ve already made. One way to counter confirmation bias is to read things you’re going to disagree with. In other words, read all you can from reputable sources, whether it’s confirming your original view or not. Another is to look for reasons your strategies could be wrong, rather than right. Anchoring bias We have a tendency to use anchors or reference points to make decisions and evaluations, and sometimes these lead us astray.  Anchoring explains why you’ll pay $6 for an hour of parking after seeing $10 at a car park down the street. Whether we like it or not, our minds keep referring back to that initial number. It’s important for you to evaluate any property deal based on its own fundamentals and all the information you have available from your research and due diligence at the time. Awareness bias How are your investments performing – are you happy with the results you’re getting? There’s a chance that even if they’re not doing so well, you may not even recognize it. In fact, it’s been shown the poorest performers in all arenas of life are the least aware of their own incompetence. Lacking the capacity to realize how badly a task is performing is known as the Dunning-Kruger effect. If you’re the smartest person on your team you’re in trouble. It’s best to work with mentors and professional advisors. Positivity bias Many people view residential real estate positively, considering it an asset class through which they can grow their wealth – and they continue to do view it in this light, even if their investments fail to prosper. In the face of lack of capital growth, prolonged vacancies or inflated expenses, they still continue to believe that their investment will turn the corner “one day.” The problem with this is that when all signs point to a dud investment, it likely is one – but positivity bias can stand in the way of an investor taking action to rectify the situation. Overconfidence is a real risk for property investors – one of the best things an investor can do is admit what they don’t know and get a good team of professionals around them. Negativity bias Just as some investors can be overly positive this is the tendency to put more emphasis on negative experiences rather than positive ones. property information People with this bias feel that ‘bad is stronger than good’ and will perceive threats more than opportunities in a given situation. Psychologists argue it’s an evolutionary adaptation – it’s better to mistake a rock for a bear than a bear for a rock. Fact is: there will always be property pessimists around telling us why not to invest and reminding you of all the things that can go wrong and the reality of real estate is that it is a cyclical investment class. However, you can minimize your risks and maximize your upside if you educate yourself and become financial fluent, follow a proven strategy and get a good team around you. Status quo bias This describes our tendency to stick with what we know whether or not it’s the best course of action. It could be as simple as buying the same name-brand groceries that you always have or as complex as holding on to that underperforming property. People do this partly because they want to avoid costs, even when it’s apparent that those costs will be offset by a larger gain, being the long-term growth of a better performing property. Psychologists have shown that most of us disproportionately stick with the status quo because “doing nothing is within the power of all men” as we often weigh the potential losses from switching from the status quo more heavily than the potential gains. That’s why all the successful investors, businesspeople and entrepreneurs I know have mentors coaches and mastermind groups to help them see their blind spots and to encourage them to keep moving forward. Survivorship Bias The misconception here is that you should focus on the successful if you wish to become successful, while the truth is that when failure becomes invisible, the difference between failure and success may also become invisible. You see…if all you’re looking at are other people’s successes, you could be missing the most important lessons for getting ahead from those who got it wrong. If you spend your life only learning from “survivors”, buying books about successful people and reading property investment success stories, your knowledge of the world will be strongly biased and enormously incomplete. The trick when looking for advice is to not only learn what to do, but also look for what not to do. Bandwagon bias This is the psychological phenomenon whereby people do something primarily because other people are doing it.  This tendency of people to align their beliefs and behaviors with those of a group is also called “herd mentality.” Herding is the phenomenon by which animals and humans herd or stick together as a mechanism to enhance our safety. The bandwagon effect has wide implications but is commonly seen during strong property markets where the media stirs up a frenzy and it’s one of the factors that leads to asset bubbles. It pays to remember that just because everyone else is doing it, that doesn’t mean you should follow the crowds. In fact, smart investors tend to invest counter cyclically. I’ve found “the herd is usually wrong” or if not they’re late. Unfortunately, excellence is the exception rather than the rule and that’s why I believe you should aspire to be unique and not part of the herd. As Warren Buffet said: “Be fearful when others are greedy and be greedy when others are fearful.” Restraint bias Following on from bandwagon bias, restraint bias is the tendency for people to overestimate their ability to control impulsive behavior. Will you have that extra chocolate when you’re watching your weight? business data success Will you spend that extra hour on the Internet when you have more important things to do? But, when the time arrives, panic kicks in… and they react just like so many others and sell up, often near the bottom – just before the cycle turns. As a property investor you should consider getting the independent property strategists at Metropole to not only help you formulate a property strategy that is proven and has stood the test of time, but also to help you annually review your property portfolio objectively. Bias bias Failing to recognize your cognitive biases is a bias in itself. Arguably this is the most damaging bias, because having blind spots means you’re less likely to recognize any of these psychological influences in yourself. When you think you’re more objective than you really are, you may be at risk of having bias bias. Investor takeaway The reality is that everyone comes into investing with their own predispositions and we are all prone to errors in judgment. The sooner you realize and acknowledge these tendencies in yourself, the more open you will be to improving and making better investment decisions. Simply becoming aware of these biases means half your battle against your own worst enemy – yourself – is won. The bottom line: We all want to think they we are rational, and biases are things that afflict other people. However, our brains are designed with blind spots and one of their clever tricks is to confer on us the comforting delusion that we, personally, do not have any biases. This is why so many of us are not only bad with money but make the same mistakes over and over again. We’re blind to our blindness. Links and Resources:  Michael Yardney Metropole Property Strategists Pete Wargent  Next Level Wealth  Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us  Join us at Wealth Retreat 2020 in October  –find out more here Pete Wargent’s new book Low Rates High Returns Show notes plus more here: https://propertyupdate.com.au/podcast-believe-it-or-not-this-is-probably-whats-standing-between-you-and-investment-success-with-pete-wargent/  Some of our favourite quotes from the show: “You actually don’t treat real estate investing as you do stock market investing. It’s very very different.” –Michael Yardney “You do need cash flow coming in from other areas so it’s a balance.” –Michael Yardney “I’ve often said that there’s no such thing as a rich victim.” –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

Most of us have accepted the situation we’re in. We’re adapting to a new normal.  The bulk of the world is in official or unofficial lockdown, we’re taking the threat seriously, and we’re seeing unprecedented government support.  We’re reminded of the importance of family and friends.  We’re locked in with them or keeping in touch with them virtually.  What else has become clear is that we’re all equal. This virus doesn’t discriminate between background, education, religion, or political affiliation, or net worth.  This crisis has revealed that there are no real global borders. We’re all connected, and this virus doesn’t need a visa.  Today, I’ll be talking with leading demographer Simon Kuestenmacher, Director of Research at The Demographics Group, and a columnist with The Australian who is globally recognised as a rising star in the field of data management and insight and a regular guest here on my podcast, about his research into coronavirus, who it’s going to hit the hardest, and what to watch out for.  Some of the topics we discuss: The virus seems to have made an early beeline for the more well-to-do suburbs of our capital cities. Why has this happened? Everyone can be attacked. The virus doesn’t discriminate. But because this is a virus that came from overseas, people who travel overseas are likely to be impacted first – and that means more well-to-do Australians. Where is the largest concentration of our aged population? In lieu of medical data, because we don’t have much of that, we can look at demographic data to see where the people who are most at risk live. Tasmania and South Australia are the two oldest states and have the bulk of the older population of Australia. Will the virus be contained in our capital cities, or will it spread to the less densely populated regional town centers? It will most certainly spread. Two-thirds of the Australian population lives in just 5 cities. The virus entered through our ports and airports spreads in the capital cities and will spread out from there. Currently, our main defense is social distancing. How will Australia’s low-density suburban sprawl make us different from the more densely packed residents of the Chinese and Italian cities? Our low density in this particular aspect is a gift. It’s easier to stay sane in a 3-bedroom house with a garden than a 1-bedroom apartment. For mental health, we’re in a good situation. But we do have Wuhan-esque conditions at least in some parts of our country. Australia’s workforce comprises 13,100,000 full-time and part-time employees. How will various workers in different industries be affected? Hospitality is a fragile sector because it relies on people being out and about. Lots of workers are young or temporary workers from overseas. This is connected to property, because those workers tend to also be renters.  Links and Resources:  Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics GroupIn 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. Show notes plus more here: https://propertyupdate.com.au/podcast-coronavirus-whos-going-to-be-hit-the-hardest-with-simon-kuestenmacher/ Some of our favourite quotes from the show: “I think at some stage, the desire to move forward is going to overcome our fears.” – Michael Yardney “A fuzzy future has little pulling power.” – Michael Yardney “You’ve got to be a dreamer. You’ve got to have a great vision of your future.” – 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 would you like to know what the property values are going to be at the end of the year? Would you like me to forecast what property values are going to be in two to three years’ time, or which areas will have the best growth? Of course! Everyone likes forecasts.  We want certainty. That’s especially true in today’s market with things are so uncertain.  But let me bust a myth about forecasts. The myth is that forecasts work. No they don’t! Today, I’ll have a chat with Pete Wargent about forecasts, why they don’t work and what you can do to have a better idea about what’s to come.  At the end of the conversation, you’ll have a better understanding of what you should be looking for instead of forecasts.  And I’ll also share a mindset moment about personal development. What’s a better way of preparing for the future? The problem with forecasts is the same problem that makes chess such a difficult game, or that makes it so difficult to win the lottery.  There are just too many variables.  Those variables are impossible to predict and therefore make it impossible to forecast real estate markets accurately.  A better option is to think in terms of probability. You want to be approximately right and avoid being completely wrong.  It’s important to question the models and forecasts. If they don’t ask and answer the right questions, they won’t provide accurate information. When evaluating a forecast take your gut instincts into account. You can’t rely on this completely, but your instincts may be trying to relay important information. You should also consider the track record of the forecaster, and the model that they’re using. Remember, asking the right questions is essential.  Ways to prepare for uncertainty: Be somewhat flexible – avoid being narrow-minded. Understand and limit your downside. Seek unlimited upside – if you pick high-quality assets in the right areas, over the long run, the compound growth has seemingly limitless upside Mingle – Great things happen when you meet people face to face 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 Show notes plus more here: https://propertyupdate.com.au/podcast-here-s-why-property-forecasts-fail-but-why-we-still-need-them/ Some of our favourite quotes from the show: “Some forecasters just keep getting it wrong, but they keep kicking the can down the road.” – Michael Yardney “I think the aim is to just do better than average because average isn’t very good.” – Michael Yardney  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 in the midst of a health war.  It’s a unique war, with every country on the planet united to beat the same enemy. It’s a silent enemy, an invisible enemy. A deadly enemy.  This is a crisis that no one alive has faced before on this scale. But we’re going to get through this.  On today’s show, I’m going to have a chat with Ken Raiss, director of Metropole Wealth Advisory, and together we’ll answer four common questions that we’re being asked about the crisis by clients.  What’s going to happen to the property market in the short term?  What’s going to happen to the property market in the long term?  Are we going to go into a recession? What does that mean for you?  What should you do about all this?  What’s ahead for the property market in the short term? Our property markets are most likely going to shut down for a while due to social distancing and lockdown.  That shutdown could last for weeks. But the same thing happens to the market every year around Christmas time. This may be longer or shorter, but it’s not unheard of.  One big difference between this shutdown and an ordinary seasonal shutdown is that there may be less confidence when we start up again.  However, not all segments of the market will be impacted equally.  The upper and lower ends of the market are likely to suffer more. But middle-class areas are not going to suffer as much and will not go down much in value.  Property markets will likely recover quickly because property is such an important part of our economy. Property and construction employ a lot of people.  The government is committed to preventing us from getting into a deeper recession than we need to. They are supporting us in the lockdown and will help the industry move on in the next phase.  The property market has both discretionary buyers and non-discretionary buyers. Discretionary buyers may choose to sit on the sidelines for a while, but non-discretionary buyers will still need to buy. Because of this, the property market tends to be resilient. What’s ahead for the property market in the long term? We don’t really know what’s going to happen.  But while this issue will have an impact and will have a short-term effect on our property market, in a year, five years, or ten years from now, this will probably have no lasting effect on the market. The property market has survived bird flu, swine flu, the global financial crisis, SARS, 9/11 and more.  We have strong fundamentals – population growth is high. Immigration may drop for a while, but when this is over, people will still come to Australia.  Interest rates are low and will remain at this rate for at least another three years.  Household composition is changing, and we’ll need more housing to accommodate the same number of people.  There will also be more people renting. For a long time, close to 30% of people were renting. In the future, it may be up to 40%, and investors need to provide housing for those renters.  First-time buyers started the year strong, and they’ll be back because they’re in it for the long term. In general, the property fundamentals and banking system are both sound.  Will we go into recession? Yes. But you shouldn’t panic.  A recession only means that prices aren’t going up as much as they were historically.  This recession may be similar to the current rate of infection, where most people who are impacted are impacted mildly.  60% of home buyers live in their homes, which means there is less volatility in the property market than in the share market.   During the Global Financial Crisis, house prices fell, but only marginally. And during this crisis, the government is spending a lot of money to prevent the recession from being as deep as it could be. Recovery will be faster for property than for other areas, especially for those who bought investment-grade properties.  What do we do?  Some people are going to run into financial difficulties during this time. If that’s you, you should speak to your bank and your mortgage lender.  Presently, you won’t be penalized if you need to reduce payments or even pause your repayments. You won’t even take a hit on your credit rating.  The government has a moral obligation to help people out when they’ve been ordered to stay home and stop working through no fault of their own, and the banks are on your side in this matter.  On the other hand, some people with sound jobs strong financial positions are in a position to do something during this period. If that’s you, this is a good time to get a strategic wealth plan. You need to understand where you are now and make a plan to get to where you want to be.  Links and Resources:  Michael Yardney Ken Raiss, director Metropole Wealth Advisory In turbulent times like this why not get the team at Metropole on your side – find out more here Show notes plus more here: https://propertyupdate.com.au/podcast-the-4-big-questions-investors-are-asking-now-about-property-and-covid-19/? Some of our favourite quotes from the show: “Having been around for a long time, you’ve already heard me say that recessions really are part of the business cycle. Painful, but nothing unexpected.” – Michael Yardney “If you’ve got a plan, then you’ve got more control of your life.” – Michael Yardney “On the other hand, if you are in the position to do something, now is a good time to get set.” – 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

It’s a common belief that becoming rich requires more than a little bit of luck.  But is this true? Or is it just that those who are not that rich find it easier to believe that those who’ve made it are luckier than they are talented?  My reading suggests that luck, whether random or self-made is a common denominator of wealthy people.  In today’s episode, Tom Corley and I will talk more about this. But part of the conclusion really is that if you want to be rich, you do need a bit of luck.  And while you don’t have control over the circumstances of your birth, you do have some control over the circumstances you manufacture after that.  As Tom Corley says, the rich are in the business of manufacturing luck.  4 Paths to Wealth There are actually four paths to wealth: The saver/investor path The big company/climber path The virtuoso/expert path The dreamer/entrepreneur path.  You can be on more than one path. And you can choose which path or paths are right for you. Creating Your Own Good Luck Three of the paths to wealth involve creating your own luck.  The rich create their own luck, and it’s different from other types of luck.  The rich put themselves in the right places at the right times 4 Types of Luck Random Good Luck Random Bad Luck Opportunity Good Luck Detrimental Bad Luck No one has control over random good luck and random bad luck.  Opportunity good luck is the type of good luck that the wealthy create. They do certain things every day that create the opportunity for good luck to occur in their lives. We call these things Rich Habits. The Rich Habits are various habits that self-made millionaires either learned from a parent, mentor or through the school of hard knocks. Detrimental bad luck is a type of bad luck most of the non-rich create. They do certain things every day that manifest this bad luck. We call these things Poor Habits. These Poor Habits are picked up at home, from parents, from friends in the neighborhood or by following the wrong people. Because many of the Rich Habits are Keystone Habits, adopting just one can help you automatically eliminate two or more Poor Habits, which are overwhelmed by each Rich Habit you forge. As you adopt more Rich Habits, those good habits will eventually create the opportunity for good luck to occur in your life. Rich Habits are like little miracle workers. They not only help improve your life, but they also help change your luck. Links and Resources:  Michael Yardney Metropole 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  Show notes plus more here: The Rich are in the habit of manufacturing their own luck Some of our favourite quotes from the show:  “Finding luck requires you to step outside your comfort zone.” – Michael Yardney “Remember, courage is not the absence of fear, but it’s the ongoing pursuit of something while you’re still worried.” – Michael Yardney “I’ve found that luck finds positive people, people who seek out 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.

Will COVID-19 crush our property markets?  COVID-19 is a health issue, but the fallout from it isn’t just health effects, it has social and economic effects too. And yes, it will affect our property markets.  That’s what we’re going to talk about today.  In addition to my own thoughts, I’ll be talking to Dr. Andrew Wilson about what’s going to happen with our property markets, whether all this will cause a recession, and what you can do.  Then, I’ll have a chat with Andrew Mirams, director of Intuitive Finance.  We’ll talk about how the banks are doing, what you can do and how the banks can help if you’re in financial trouble, and what you can do if you’re not in financial trouble and are in a position to use your finances strategically.  Things are changing fast right now, but hopefully, after today’s episode, you’ll have a bit more clarity about where the property markets and finance are headed.  Property Insiders with Dr. Andrew Wilson The property market is at least partially shut down and may be shutting down completely soon.  However, we will get through this, and the market will reopen for business.  And when that happens, we’ll be in a better position than we might have been under other circumstances.  COVID-19 is a health issue, not an economy issue. The fundamentals of the economy are still strong.  The government and Reserve Bank are looking into ways to lessen the immediate impact on citizens who will experience financial difficulties because of this pandemic.  Yes, we will go into a recession. But we’re in a better position to recover than we were following the global financial crisis in 2008-2009. There are large buffers of capital and liquidity in the system. We have a strong banking system, and the banks are stepping in early to help.  Consumer confidence is likely to fall in the near future, and of course, that will have an effect on the market. But experienced investors who have lived through a couple of property cycles and who have secured jobs tend to see this as a short-term blip, not a reason to change their long term investment journey. The banks are open for business Despite the crisis, banks are open for business.  In fact, they’ve been given a $90 billion lifeline to go out there and lend money and stimulate the economy.  Bank regulators are taking a common-sense approach in these uncertain times, and our banks are lending more freely in the short term than they have in recent times.  If you’ve run into financial difficulty because of COVID-19, there are options.  If you are paying more than the minimum required repayment on your mortgage you can reduce the repayment to the minimum repayment anytime without charge with your lender. You may also be able to take a repayment holiday or payment pause.  Just remember that the lenders aren’t waiving your repayments or obligations but simply deferring them. Asking to pause or postpone your interest payments in these unusual times will not affect your long-term credit rating as it normally would do. If you’re in a good financial position and you have a sound job, this is a great time to take advantage of the property markets. Remember, the underlying fundamentals of the economy are still strong, and good investment-grade properties will still hold their value.  If you’re in a position to do so, now is a good time to take action and set yourself for the opportunities that will present themselves as the market moves on. Links and Resources:  Michael Yardney Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au  Subscribe to my weekly Property Insiders Video chats with Dr. Andrew Wilson at www.PropertyInsiders.info Andrew Mirams, director of Intuitive Finance In turbulent times like this why not get the team at Metropole on your side – find out more here Show notes plus more here: https://propertyupdate.com.au/podcast-will-the-pandemic-kill-property-property-insiders-with-dr-andrew-wilson/ Some of our favourite quotes from the show: “The underlying factors are still positive.” – Michael Yardney “I think we’ve come into this terrible crisis with a much better situation with our banking system than we did with the global financial crisis in 2008-2009.” – Michael Yardney “If you’re in trouble, ask. Don’t try and sort it out 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