Property Investment, Success & Money | The Michael Yardney Podcast

As a business owner, as an entrepreneur, as an investor, you’re going to be facing a lot of challenges in 2020.  In fact, the year has already brought us our fair share of challenges. Some have come from inside Australia; some have come from overseas.  And that means things are going to be tough this year.  Despite those issues, some business owners, investors, and entrepreneurs are going to do a lot better than others, and today we’re going to discuss the reasons why.  Even if you’re not in business for yourself, this show is going to be useful for you, because a lot of the information will help you as a property investor.  3 common traits of business owners that succeed Clarity – they know exactly what they want. They have mission/vision/purpose They have the right mindset – everyone I’m talking to who is crushing it says they have to work even more on their psychology. The more you win the more you move out of your comfort zone and get into new areas of fear, anxiety, and doubt, so you need to keep upgrading your psychology – the very best spend time on this every day Their infrastructure and systems – They set up to allow you to grow and keep delivering high levels of service and great levels of support.  3 big questions you need to ask yourself What exactly am I committed to achieving this year? Focus and go all in. What mindset rituals must be in place to help me achieve this? The best have rituals to help them persevere through the tough times. Use a project management tool – set it up to show things I want to do, things I’m doing, things I’ve done What systemic change is required to sustain this new level of growth? The best are building their infrastructure and systems.  Most business owners and entrepreneurs struggle because they’re not asking themselves these questions. 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 2020 in join- find and more and register your interest here  Some of our favourite quotes from the show:  “If other people could solve the problems, they’d be the boss.” – Michael Yardney “I know that the difference between the successful business people, entrepreneurs, and investors I see and the average person is the way they think.” – Michael Yardney “Everyone, all of us, you, me and the various successful people still have our own limiting beliefs, so, therefore, we help them get rid of those.” – Michael Yardney  Show notes plus more here: The 3 reasons why the best entrepreneurs and business owners are crushing it in 2020 | Build a Business, Not a Job Podcast 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.

Yes another podcast about the coronavirus, but you really need to listen to this one.  What started as a little cold for our economy has progressed to the flu and now sounds like it could be a dose of economic pneumonia. Look where we are today… Dwindling confidence, a major stock market crash, talk of recession, workplaces closing, major events cancelled, social distancing.  What next?  Well…panic I guess There is little doubt that it is serious. And I don’t want to make light of COVID-19  based on my view, having been involved in the property market for over 45 years, and those of Dr Andrew Wilson who I’m going to have a chat with today, we believe the impact of this on our property market will ultimately be temporary. Now this may be a little different to what some others are suggesting, but please listen to today’s show as I believe I will be able to bring some calm to the storm. Remember …this too shall pass. There is no doubt that the virus will cause illness is some people and tragically even kill others. And even though I’m going to be concentrating on property today, I don’t want people to think that I don’t care about other people, their health and those in need. I’m also concerned for those whose jobs are at risk, and who may suffer from isolation or mental health issues from restricted social exposure. But I’m not qualified to discuss those matters, so listen as I first give some of my views and then chat with Dr Andrew Wilson. We will explain how worried you should really be, the possibility of Australia going into recession and what that could mean for you, how does downturn may compare with other downturns that we have experienced, and also the perfect storm that could come out at the other end. Now the show was recorded in the third week of March, a few days before it is going live on my podcast, and I’m sure a number of things have changed between now when I’m talking to you when I’m recording the show and when you officially listen to it. However, the message I’m trying to get across to you today is not really be time sensitive. You see…the main messages I want to get across today is that taking a long-term perspective always outsmarts short-term reactive thinking. And from mine, it’s always property fundamentals that really matter and drive our markets in the long term. Things like demographics, supply and demand, affordability, availability finance, and local economic trends. We all know the old saying, being fearful when others are greedy and be greedy when others are fearful, but it’s always difficult to invest when everyone else is running around thinking the world is coming to an end. But now that I have invested in close to 8 cycles, I have found exactly these conditions the present the best opportunity.  What we are currently experiencing is like a terrorist attack which will deliver a short sharp blow to our economy rather than experiencing a long drawn out war.  Yes our economy fall into recession, but this will be different to previous recessions as we will explain in the podcast, and the economy is likely to rebound in the second half of this year at which time we are likely to be experiencing a perfect storm for property. Our government, and the governments around the world have learned a lot about handling monetary and fiscal policy is during economic downturn’s and they are hellbent on making this downturn as painless as possible. Sure unemployment will rise little bit, probably to 7%, but that still means at 93% of people will have a job. And if the government lives up to its promises, it’s stimulus packages will grease the wheels of industry and keep more of us employed. One of the major lessons I have learnt from previous downturns is the importance of the taking a long-term perspective which always outsmarts short-term reactive thinking. And from mine, it’s always property fundamentals that really matter and drive our markets in the long term. Things like demographics, supply and demand, affordability, availability finance, and local economic trends. We all know the old saying, being fearful when others are greedy and be greedy when others are fearful, but it’s normal human nature to find it difficult to buy your new home or invest when everyone else is running around thinking the world is coming to an end. But now that I have invested in close to 8 cycles, I have found that it is exactly these conditions the present the best opportunity.  So now is the time to get prepared to take advantage of the opportunities that the market will offer. It is likely that human nature will cause many would be advised to sit on the sidelines for a little while until things become more clear, which means that sellers will be more amenable to accepting offers rather than holding out for a top price.  Remember don’t make long-term decisions like buying a home or an investment property based on the last 30 minutes of news. There is no doubt there will be opportunities in the market for those who are willing to go against the crowd and when they look back in a year’s time and definitely in 5 or 10 years’ time they will remember the unprecedented events of 2020 as a great buying opportunities for property. Links and Resources: Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au  In turbulent times like this why not get the team at Metropole on your side – find out more here SHow notes plus more here: Oh NO! Not another podcast about the corona virus and a recession | PROPERTY INSIDERS 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

In today’s show, I’ve got a special interview that I’m sure you’re going to enjoy.  More importantly, it’s one where I know you’re going to learn something that will help you as a businessperson, investor, or entrepreneur.  If you’re a regular listener, you know that I enjoyed a 6-week cruise at the beginning of the year.  And on that cruise, I befriended Lord Digby Jones, a politician who sits in the House of Lords in the UK and a renowned social commentator. I asked him to record a chat that we had in our cabin during the cruise, and that conversation is what you’ll hear today.  What’s this got to do with property in Australia?  The property market is significantly affected by the world’s economy. His fact has become only too obvious in the last weeks. So in today’s episode, you’ll hear Lord Digby Jones talk about some fundamental changes that he believes are going to happen over the next decade, and that you’ll need to understand if you want to be successful during that time.  We’re going to chat about Brexit, the Asian century and what that means for Australia, the benefits and risks of social media coming in the next decade, the possibility of social upheaval over the next decade, and Lord Digby Jones’s advice to a young couple breaking away from the family business and starting off on their own – Harry and Meaghan.  Some of the topics we discuss: Whether the current pessimism is warranted The opportunities coming from Southeast Asia Trade wars on the horizon The history of the growth of China and where China is going now The hold that social media has over the public Facebook’s responsibilities in regard to their platform Political correctness on other social media platforms What advice Lord Digby Jones would give to Harry and Meghan Predictions for things we’ll be doing or thinking about differently by the end of the decade Links and Resources:  Michael Yardney Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Lord Digby Jones Show notes plus more here: Some fundamental changes you need to understand if you want to be successful over the next decade Some of our favourite quotes from the show: “There’s a lot of political correctness at the moment. In other venues, you can’t say the wrong thing without offending somebody.” – Michael Yardney “That’s one of the areas where Australia is more fortunate. It has got strong migration, 66% of our population growth is coming from targeted migration of people of household formation age, skilled migrants and people coming in with business skills and business money.” – Michael Yardney “I think the good news is we’re living in the best time in history in one of the best countries in the world. We’ve got a lot to look forward to.” – 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 a lot of scary headlines at the moment.  All of the anxiety in the air can even make an optimistic person a little nervous. In today’s episode, I want to bring some perspective to the frightening headlines by explaining some of my thoughts on the current situation. Then, I’ll be talking to Dr. Andrew Wilson, who’s also been around for a while and has seen and experienced things like this before.  By the end of the episode, I hope you’ll be a little less scared, and also have some facts to work with.  Remember, most of the things we worry about actually never happen.  Seven reasons why I’m confident in our property markets despite the coronavirus scare What’s ahead for our property markets in light of the coronavirus issues? Are they going to crash like the stock market has? Is Australia going to fall into recession? That’s a question on the mind of many investors in light of the economic woes around the world and the uncertainty surrounding the coronavirus. Now I'm not downplaying the potential medical issues related to the coronavirus. In fact, I've looked up the definition of a "pandemic" and this definitely is a "pandemic" even though our health authorities are not prepared to call it one. Clearly many Australians will come in contact with the virus over the next couple of months, some people will suffer cold and flu-like symptoms while other more frail members of the community will succumb to the germ. And that is tragic. At the same time, many businesses will suffer, particularly those in hospitality, tourism, education and those whose supply chain from South East Asia will be affected. But based on my perspective having been involved in property for over 47 years, while this issue will have an effect on our economy and a short-term impact on our property markets because consumers will become less confident and sit on the sidelines waiting for things to become clear, I believe that a year from now, and in particular five years from now. and most certainly in 10 years from now, this pandemic will have had no influence on where the Australian property market will end up and the value of your and my home at that time. But this is the first global crisis we're experiencing in the social media age and we've learned that: Information spreads fast and False or sensational information spreads faster. So, remember these wise words... As Warren Buffet said: "Be fearful when others are greedy and be greedy when others are fearful." Homebuyers and long-term investors who have a secure job and income and pre-approved finance should take advantage of any short term downturn in our property markets to set themselves up for the next phase of the property cycle. As I said, I'm comfortable with the underlying fundamentals supporting our property markets int the medium to long term. Let’s look at a couple of them… Population growth Australia’s population is growing by around 360,000 people per annum, meaning we need to build around 170 to 180,000 new dwellings each year to accommodate all the new households. Declining housing supply The oversupply of dwellings in many Australian locations is now dwindling and there are very few new large projects on the drawing board. Considering how long it takes to build new estates or large apartment complexes, we're going to experience an undersupply of well-located properties in our capital cities in the next year or two. Interest rates are low and will go down further The prevailing low-interest-rate environment is making it easier to own a home, either as an owner-occupier or investor. Smaller households are becoming the norm Pretty soon Millennials will make up one-third of the property market and their households tend, in general, to be smaller as are the households of the booming 65+ year old demographic. More one and two people households mean that moving forward, we will need more dwellings for the same number of people. More renters Soon 40% of our population will be renters, partly because of affordability issues but also because of lifestyle choices. First home buyers are back First home buyers are back with a vengeance, in part thanks to the government’s new scheme to encourage them, but also because of cheap finance and rising property values. As opposed to established homebuyers who have a “trade-in” that is increasing in value, if first home buyers wait to get into the market they're finding the market moving faster than they can save, so they’re hopping on board the property train as quickly as they can. The underlying fundamentals are strong Sure our economy is facing challenges, and the share market is volatile, but our property markets are underpinned by the fact that 70% of property owners are homeowners who are there for the long term. They're not going to sell up their homes - they'd rather eat dog food than give up their homes. And Australia’s banking system is strong, stable and sound. Property Insiders With Dr. Andrew Wilson In the short term, the virus might affect the property market, but in the long term, it most likely won’t affect the value of property in Australia. Some history:  In the past 40 years in the share market, there have been 12 corrections of 10% or more. There have been 8 corrections of 20% or more.  We’ve had 5 recessions.  But property over the last 40 years has been much more resilient and stable.  That’s because property is based on the provision of a good we all need – shelter Yes, business confidence and consumer confidence may be down for the next little while. If we can get a sustained recovery in the share market, that will be the first step to recovering confidence. There will be a decrease in travel and tourism, but that will probably be offset to some extent by government action. We still need to look at the fundamentals.  There is plenty of upside in recovery. Housing prices are still below where they were three years ago in Sydney and Melbourne. We still have the lowest interest rates on record and there’s probably another cut coming as part of the government’s stimulus package. This will only make property more affordable.  Plus, there’s still a surge in first home buyers.  There are still a lot of positives for the housing market, and there’s reason to be hopeful that this current situation won’t be a significant issue within months.  The bottom line: The wise King Solomon had an inscription inside his ring that said, “This too shall pass.” This was so that he would not become too confident during the good times or too despondent during the bad times. The coronavirus outbreak has spooked markets across the world and there is no doubt that it will have a significant global economic impact. However, like all the other worldwide epidemics we’ve experienced this too shall pass. At his inaugural address in 1930, Franklin D Roosevelt said: "There is nothing to fear but fear itself."  Wise words indeed. Links and Resources:  Michael Yardney Metropole Property Strategists Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au  Join us at Wealth Retreat 2020 on the Gold Coast    Click here for details Show notes plus more here: Coronavirus – property disaster or buying opportunity? | PROPERTY INSIDERS with Dr. Andrew Wilson Some of our favourite quotes from the show: “I don’t make 30-year investment decisions – and that’s what your investment should be long term – based on the last 30 minutes of news or so.” – Michael Yardney “Just because we do have a recession in technical terms, doesn’t mean that people are going to lose their houses.” – Michael Yardney “You’ll never regret taking a vacation, engaging in a new hobby, or spending a day with those who make you happy.” – 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 are the common mistakes made by beginning property investors?  In today’s show, we’re going to discuss those mistakes and how to avoid them.  This episode is one of two that I recorded with Marc and Sally from Finder.com.au. If you heard last week’s episode, you know that we previously discussed the common mistakes that first-time homebuyers make.  In this session, Mark and Sally asked me about the common mistakes that beginning investors make so that they, as beginning investors, could avoid them.  But there’s a lot of useful information for more experienced investors in our conversation.  Listen in to hear the interview, which is followed by today’s mindset message. How to avoid property investing mistakes Most property investors are trying to achieve financial independence. But about half of the people who buy an investment property sell up in the first five years. And they often end up selling at a loss, as well. As you can imagine, this does not help in reaching financial independence. Take a look at some common beginning investor mistakes to avoid.  Trying to go it alone You should be investing as part of a team, not by yourself. Having a property strategist and a buyer’s agent protects you and helps to level the playing field.  Not doing your research Location does the bulk of the work when it comes to your investment property’s capital growth. You can make so much money from rent – but to grow substantial wealth, you need capital growth.  That means checking data for the location you choose to see how likely the property is to grow in value over the next ten years. Waiting too long Timing the market isn’t that important – well-located properties in capital cities tend to double in value every ten years.  Waiting for the “right time” only causes you to lose out on good opportunities. Buying what you like or want Remember that when you’re buying an investment property, it needs to appeal to owner-occupiers, because they’re the ones who are going to push up the value.  You also need to consider what tenants want.  But properties that are built to appeal to investors often aren’t the properties that go up in value, because those properties don’t have the same appeal to owner-occupiers and tenants.  Underestimating your running costs You need to plan for regular costs, like taxes, as well as unexpected costs, like damage to the property. Landlord insurance can cover some costs, like tenants leaving or failing to pay the rent, and insurance on the building can cover things like storm damage.  But you’ll still need to have money set aside for things that aren’t covered by any insurance. Managing your own property Property managers keep up with changing legislations that may affect you as an owner, make sure that insurances are current, and generally provide you with an extra layer of protection while ensuring that things run smoothly. Links and Resources:  Michael Yardney Metropole Property Strategists The original episode of this show appeared on The Pocket Money Podcast -  finder.com.au  Join Michael Yardney and a group of Australia’s leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane, and Melbourne Use the coupon code PODCAST and come as our guest Show notes plus more here: The top property investment mistakes to avoid. Some of our favourite quotes from the show:  “There’s two groups of people: some who get in too early, some who get in too late.” – Michael Yardney “Of the 20 million property investors in Australia, the majority, around 90% never get past their second investment property, which means they never get the financial freedom they’re looking for.” – Michael Yardney “Smart investors buy themselves time to ride the ups and downs of the cycle.” – 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

Are you looking at buying your first home now or in the future? Then this episode is for you.  I’ll be talking with Marc and Sally from Finder.com.au about things first-time homebuyers need to do to make the most of their purchase and the mistakes they should avoid.  Even if you’re not a first-time buyer, the property information we discuss is valuable for those who have been through the process before as well.  Mistakes First Home Buyers Make Buying emotionally – Your first home is not likely to be your last home, so it’s better not to get too emotionally invested in the process. Instead, think of it as an investment, and a stepping-stone to your next property. Not factoring in all of the real costs – Everyone looks at the price of the property first, but it’s important not to let all of the other costs, like stamp duty, conveyancing, moving costs, rates and taxes and insurance and maintenance, body corporate fees, and mortgage fees get left out of the equation. Overextending financially – A mortgage broker can help you navigate loans and work out a budget, so you don’t end up taking on more than you can really afford.  Not doing your proper due diligence – Don’t forget the seemingly little things like building and pest inspections. These can help you avoid potentially big problems down the road.  Not understanding the contract you're signing – Once you’ve signed a contract, you’re obligated to fulfill the terms, so it’s important to understand what you’re getting into. Your legal representative can help make sure that you’re fully informed before signing on the dotted line. Not getting finance pre-approval – When you get your finances organized ahead of time and get a loan pre-approval, you’ll know exactly how much you have to spend and be at less risk of overextending yourself.  Trying to do it on your own – Buyer’s agents, mortgage brokers, and solicitors are all examples of professionals whose expertise can help make sure that your buying process goes smoothly and you get what you want and understand what you’re getting. Don’t try to go it alone.  Links and Resources:  Michael Yardney Metropole Property Strategists The original episode of this show appeared on The Pocket Money Podcast -  finder.com.au  Join Michael Yardney and a group of Australia’s leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane, and Melbourne Use the coupon code PODCAST and come as our guest. Show notes plus more here: 7 common mistakes first home buyers make Some of our favourite quotes from the show:  “And the other thing is, if you buy emotionally and overpay, it's going to cost you a lot more than you need, and that's going to be an extra cost in stamp duty and interest for a long, long period of time.” –Michael Yardney “When you rent, you don't think about paying things like rates and taxes and insurance and maintenance, body corporate fees, those sort of things.” – Michael Yardney “Today, in this current lending environment, it's much, much harder to get a loan, there's a lot more hoops you've got to go through, it takes longer than it used to.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Not all investors are created equal.  If you want to become a successful property investor you really need to understand the five levels of investing which is a model that I’ve designed to explain how most investors progress along their path to financial freedom. Just to be clear, this has nothing to do with your level of income. It has a lot to do with your financial fluency and financial intelligence.  If you want to work your way up the rung of investors, you’re going to have to understand which level you’re at right now present and what you have to do to work your way up to the next level. After today’s episode, you’ll understand more about the levels and where you fit into them. After I’ve explained the five levels of investing, I’m going to share a mindset message from one of my mentors.  The Five Levels of Investing Level 0 – The Spender Those at level 0 end up with a high level of debt because they spend and borrow, living paycheck to paycheck. They aren’t really investors at all; they’re spenders and borrowers. Level 1 – The Saver Those at level 1 have one main investment – their home. They save money, but they save it to spend it later, not to invest it. Savers are often unwilling to take any risks with their money and fear financial matters that look risky. Level 2 – The Passive Investor Those at level 2 are aware of the need to invest in order to grow wealth. However, they don’t necessarily understand the rules of money and may be hanging on to outdated ideas about finance. Passive investors look for outside sources and “experts” to tell them what to do with their money instead of educating themselves, which can make them easy prey for get rich quick schemes. Level 3 – The Active Investor Those at level 3 are actively involved in their investment decision and take responsibility for their own financial futures. They focus mainly on growing their asset base. Active investors understand that they can’t do it all themselves, so they form networks of advisors and peers or join Mastermind groups. Level 4 – The Professional Investor Those at level 4 have risen to a level where they have built and now manage their own investment business. They have a substantial asset base that generates enough passive income to pay for their lifestyle, and they continue to grow their portfolio whether or not they work a real job. Professional investors retain control of their investments while employing a team to help them continue to achieve consistent results. Where do you fall in the levels of investors? Not everyone makes it to Level 4. In fact, few get that far. But you can, once you understand why the rich keep getting richer. Links and Resources:  Michael Yardney Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in June this year – find out more here: Wealth Retreat 2020 Show notes plus more here: Do you understand the Five Levels of Investing? Some of our favourite quotes from the show: “Level 4 investors rarely stop educating themselves.” – Michael Yardney “A final point about Level 4 investors is that they teach their financial knowledge to their children. They pass on their family fortune to future generations.” – Michael Yardney “You can be a low-income earner when it comes to your day job, but still be a level three investor and have financial security.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Have you ever wondered why there is so much bad news out there? Maybe it’s because people find bad news more interesting than good news. That applies to property, the economy, politics, and everything else. A recent study that I read concluded that on average, people pay more attention to negative news than positive news. I’ve found that blogs and podcasts with subject lines that are more negative get more attention.  The problem is that people do have a bias toward negative news, and if you have that tendency, it’s going to affect the way you think, the way you feel, and the actions you take. Remember, your thoughts lead to your feelings, your feelings lead to your actions, and your actions lead to your results.  Pete Wargent and I discussed why those bloggers who are continuously negative about property and our economy get so many more followers than the positive people, and that’s what we’ll talk about in today’s podcast.  We’ll talk about how you can overcome this negative bias, what is causing it, and how we can move forward in the new year and take advantage of all of the positive things that are happening.  How negative news affects us as businesspeople, investors, and entrepreneurs Turn on the news these days, and you’d be forgiven for thinking that the world is about to come to an end.  Negative and bad news seems to surround us everywhere we go.  The problem isn’t just that bad things re happening around the world, but it’s partly that our brains are wired to pay more attention to unpleasant news. This is called negativity bias.  How does this affect us as investors, businesspeople, and entrepreneurs? There’s a strong body of evidence that demonstrates the human tendency to prioritize negative things. We’re hardwired to respond to negative words and negative events.  Negative headlines affect the way you think, the way you invest, and whether or not you’re willing to take risks.   There are different dynamics when it comes to finance and the economy, as opposed to subjects like war or crime. Schadenfreude is a huge driver of interest in financial and economic topics. That’s because people understand that there are two ways to get ahead of your peer group: either you succeed, or they fail. Some people take a curious comfort in negativity or the economy struggling and falling on hard times. That’s because most of us believe that we’re better than average, and negative economic news can appear to confirm this.  In reality, success tends to get skewed toward people who take action. Another factor is the tendency to use social media as a news source. This can obscure your perception of reality. After all, what you’re seeing are other people’s highlight reels. You don’t see the things that wind up on the cutting room floor.  If you want to be successful, it’s more effective to follow people who’ve achieved what you want to achieve and emulate them than to fixate on negative news.  People are driven by the need to be right or contrarian, but you miss out on a lot if you’re consistently negative.  It’s also important to remember that news is about things that happen, not things that don’t happen. In other words, no one reports on wars that don’t break out, or economic crashes that never occur.  Herd mentality kept us safe in the old times, but it’s not the best investment strategy. If you do only what the average person does, you’re likely to get only average results.  There are plenty of good things happening out there, but you might have to consciously look for them.  If you look for the good things, you’ll find them.  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 Michael Yardney and a group of Australia’s leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane and Melbourne Use the coupon code: PODCAST and come as our guest Some of our favourite quotes from the show:  “It’s the developers that are going to build all of those big apartment buildings that will allow more of them to buy homes in the first place.” – Michael Yardney “Those who take action, can become wealthy.” – Michael Yardney “Despite us thinking we’re rational, we’re not. We think irrationally.” – Michael Yardney Show notes plus more here: Why do we pay more attention to negative news than to positive news? 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’s ahead for property this year? Is this the end of interest rate cuts?  We started this year with optimism, but now we have our fair share of turbulence. We have the coronavirus epidemic, the bush fires, political tensions overseas.  How will these affect our property markets and our economy?  Those are some of the things we’re going to talk about today with Dr. Andrew Wilson.  We’re also going to discuss auction trends, the home loan trends, what’s happening to interest rates, and what’s happening to inflation, as well as employment, consumer confidence, and our housing markets.  There’s a lot of information in this episode that will make you a more informed property investor.  We’re just over 10% into the year 2020, and we’ve already had our share of X factors that have upset the forecasts.  Auction trends Let’s start with property trends. A number of data sets are suggesting property values have continued rising around Australia.  The property upturn which started in Sydney and Melbourne in the middle of last year has become more widespread with housing values rising in January across every capital city. There’s plenty of competition among buyers. There are not only higher clearance rates, but there are also higher numbers of properties being offered for sale.  Median prices are growing strongly, but they’re a bit of a lagging indicator. Auction clearance rates are a more in-time indicator of market sentiment and depth. Home loans surge A lot of fuss has been made of the December home loan figures which confirm the revival of our housing markets. However, they still remain well below the figures of 12 months ago, particularly for property investors. On the other hand, ending for first home buyers went against the trend, increasing by 4.6% over 2019 compared to the previous year. Is this the end of rate cuts, or are the RBA just holding off? The Reserve Bank of Australia decided in the first week of February to keep interest rates on hold. The board noted that previous outbreaks of new viruses had "significant but short-lived negative effects" on economic growth in the economies at the centre of the outbreak. Headline Inflation rising - but still subdued Headline inflation was up to 0.7% for the quarter, and the annual rate of inflation sits at 1.6%, which is significantly below the 2-3% target range the RBA is aiming at. More economic headwinds – tragic bushfires and coronavirus. The Australian economy posted its worst performance since the global financial crisis in 2019. The big macro stories affecting our economy have come so far this year have been: The USA China Trade Pact  Brexit  The Corona Virus The Australian bush fires. The coronavirus is creating a second wave of economic disruption in Australia.  The RBA minutes stated that the coronavirus will have a bigger impact on the Australian economy than SARS. Good news for employment Unemployment fell at the end of last year to 5.1%. But there is still spare capacity in our labor markets with many people who are in part-time jobs being underemployed. A slump in job advertising over the past year and slow economic growth suggest the unemployment rate could go even higher. Consumer confidence Three interest rate cuts and reductions to personal income taxes have failed to lift the mood of consumers, who appear more content in paying down debt and saving rather than spending the increase to household incomes.  Business confidence is also weak as business conditions struggle below average, raising the risk of slowing employment growth and continuous sluggish business investment. Our Housing Market Our forecasts for 2020 are that property values will be higher at the end of the year than today with well-located Sydney and Melbourne properties worth 10% more than they are today. Links and Resources:  Michael Yardney Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au  Join us at my annual Property Market and Economic Update – come as my guest using the Coupon Code: PODCAST  Click here for details Show notes plus more here: What’s ahead for property this year? How will the corona virus affect our economy? Some of our favourite quotes from the show: “Auction clearance rates are a more in time indicator of the market.” – Michael Yardney “In the context of what’s happening in the world, those aren’t bad economic figures if we could achieve them.” – Michael Yardney “I guess the elephant in the room is the coronavirus. It’s still a developing story and even the RBA stated in its minutes that it will have a bigger impact on the Australian economy than SARS.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you’re looking for more money, better success in property investment or other areas of your life, or more wealth, this episode is for you.  I have three messages for you today. We’re going to discuss one thing you’re going to have to change to become a more successful investor – and it’s not what you think.  I’m also going to share what is the right type of property investment for this stage of the cycle.  Then, in my mindset moment, I’m going to explain an important trait of successful people. And if you can pick up on it, there’s no reason why you can’t be successful as well.  The One Thing You Need to Change for Investment Success One of the first steps in change is changing your thoughts. How do you think about money, success, and prosperity?  For many of us, our thoughts revolve around fear, scarcity, and limitation. If you think about fear, scarcity, and limitation – what do you achieve? Remember: Your thoughts lead to your feelings – your feelings lead to your actions and your actions determine your results. So, money is a result. Wealth is a result. These occur in your outer world but are determined by your thoughts and feelings – your “inner world.” It’s not what you don’t know that prevents you from succeeding; it’s what you think you know that isn’t correct that is your greatest obstacle. The problem is for many Australians their thermostat is not set for wealth. Firstly, we need to change the way we think about ourselves. We need to see ourselves as a wealthy person, as a wealth attractor and a wealth creator. This means we may need to change some ingrained thinking patterns. Or overcome some negative ways of thinking that have developed as a result of past experiences. Most successful people all share one critical characteristic – the trait of adaptability. They embrace change. They look for opportunities to expand and learn. Another common characteristic of successful people is that they have a mentor and they belong to a mastermind group. They hang around other like-minded successful people. Results change when people change their way of thinking. And doing things differently first requires thinking differently. If you change your thinking, you will change your actions and if you change your actions – results. What’s the right investment for this property cycle? We’re well into a new property cycle. And with the property market on the move, it’s becoming apparent that more and more investors are looking for the next hotspot.  The problem is that hot-spotting is about short term speculation, not long-term wealth creation.  Most property investors are looking to build an asset base so that one day they can replace their personal exertion income with their property income.  But the key to building a substantial property profile is to use the first property to leverage into your next property, then using those two properties to leverage into more investments, and so on and so on.  And you can only do that by investing in the type of locations that consistently provide long-term capital growth. But by definition, hotspots are not that.  They cool off as quickly as they heat up.  If you’re into investing in short-term trends, being right isn’t what’s important; it’s being right at the right time that counts. Very few can do that, so the history of investors trying to find the next boomtown is littered with people who get the story right and the outcome wrong. Instead, I buy in areas that have a proven long-term history of outperforming the average capital growth and that are likely to continue to outperform, because of the demographics of the people living in the area. Hot spotting is virtually the opposite of this sensible, not-so-sexy, tried and tested system for successfully building a property portfolio. There are some principles that can be applied whenever you consider investing in real estate, to ensure that you are as comfortable as possible and exposing yourself to the least amount of risk. These include: There is no one property market. Instead, there are many submarkets around Australia. Each state can be at a different stage of its own property cycle and within each state, the markets in different areas are segmented by geography, price points, and type of property. Rather than trying to time the market, buy the best assets you can. Owning an investment-grade asset that grows at wealth-producing rates of return will see your portfolio outperform over the long term. Strategic property investors manufacture capital growth through property renovations or development. Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behavior of other investors. While the long-term performance of property is influenced by the fundamentals, its short-term performance is much more affected by market sentiment. Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions. Don’t make 30-year investment decisions based on the last 30 minutes of news. Recognise that property is a long-term play. You need financial buffers to help you ride the property cycles because the cycle will keep recurring. Links and Resources: Michael Yardney Metropole Property Strategists Michael Yardney’s Mentorship Program Register your interest to join us this year at Wealth Retreat 2020 Join us as our guest at our annual Property Market and Economic Update 1 day trainings - - use the coupon code PODCAST and come as our guest. Show notes plus more: The right investment for this stage of the property cycle | 1 thing you’ll need to change to become a successful investor   Some of our favourite quotes from the show:  “The problem is in terms of wealth creation, it’s not what we know that’s holding many of us back. It’s what we think we know that isn’t so, that isn’t right, that is holding us back.” – Michael Yardney “If you continue to do the things you have always done, you’re going to continue to get the results you have always achieved.” – Michael Yardney “A side effect of doing challenging work is that you’re pulled by the excitement and pushed by the confusion at the same time.”  -- 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