Property Investment, Success & Money | The Michael Yardney Podcast

It’s already turning out to be an interesting year for property in 2020.  Some commentators are suggesting double-digit capital growth in some of our capital cities, others are suggesting more subdued growth.  The question is, who are you going to listen to? Whose advice are you going to take?  Because if history repeats itself, and it surely will, many property investors are going to get it wrong this year and in this new decade.  In today’s show, I chat with property researcher John Lindeman to give you some warnings about a new breed of property spruikers who are out there to get you and take advantage of you.  By the end of the show, you’ll have a better understanding of whose advice to take and what traps to watch out for.  Don’t get hoodwinked by property spruikers Whenever the market starts to move, the spruikers come out to promote their wares.  And they may twist facts and research to do so.  Research can be twisted to give any result you want. There are a number of statistics that can be used to paint a misleading picture.  For example, a spruiker might preset statistics showing that values in a particular neighbourhood have grown over the past 12 months.  However, if you looked at the statistics for the past five years, you would realize that while values in that neighbourhood may currently be on the rise, they’re still below the level they were at five years ago. In other words, the deal is not as good as the last 12 months of statistics alone make it appear to be.  You also need to be wary of high-pressure sales tactics.  Look out for free events that come with lots of perks. It may sound good at the time, but these events are often an excuse to give you a hard sell.  Who should you be asking for property advice?  Probably not family and friends, unless they happen to be property experts as well. Realtors are there to represent the seller, not you.  And you certainly don’t want to be taken in by spruikers.  But you need reliable advice from somewhere.  Independent investment advice, such as the kind offered by the Property Strategists at Metropole, is your best bet. These advisors aren’t selling property, so they’re not invested in urging you to buy property that might not pay off for you in the long run. Instead, they’re invested in giving you the unbiased property advice that you need to succeed.  Links and Resources:  Michael Yardney Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join Michael and a group of property experts at their annual Property and Economic Market Updates in Sydney, Melbourne, and Brisbane John Lindeman, Lindeman Reports Show notes plus more: Don’t get hoodwinked by property spruikers with John Lindeman Some of our favourite quotes from the show:  “Others ask family and friends, and unless they’re property experts, have a fun chat with them but don’t take their advice.” – Michael Yardney “Be careful about people who talk a little about investing but who have never done it themselves.” –Michael Yardney “Without action, dreams are really just a belief.” – 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 want to become more successful in life, business, and investing, you’re going to get a lot out of today’s show. Even if you’re not an entrepreneur in the sense that you would normally use that word, if you want to be more successful than the average property investor you will need to be entrepreneurial. In this episode, you’ll hear me being interviewed by Brett Warren and I’ll be answering questions that have been left on the website by my blog readers and my podcast listeners, as well as a few questions that Brett himself came up with. Highlights from the Interview with Brett Warren Why I got involved in property investment My first investment property What I enjoys about property The four ways to get money out of property How I suggest you choose a location to buy property When the best time is for someone to start investing in property What type of property I’m investing in and why The essential qualities of a successful property investor Why I’m still working and 0what drives me The most important lesson I have learned about property investment When I learned about the importance of mindset motivation How to make a mindset change Why successful people fail more often than unsuccessful people How Metropole can help potential property investors Why a buyer’s agent is important, even in this economy Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney’s Mentorship Program Brett Warren – director Metropole Property Strategists Brisbane Show notes plus more here: Confessions of a real estate entrepreneur – Summer Series Some of our favourite quotes from the show: “Performance isn’t possible in an empty theater. So what a privilege it is that I have a large and ever-growing number of people with sustained and enduring interest in what I have to do, what I say, and what I teach.” –Michael Yardney “My first property that I bought for $18,000 I still have now …is worth well over 2 million dollars.” – Michael Yardney “In my mind, you’ve got to invest for capital growth until you’ve built enough of an asset base. If you want cash flow, don’t buy real estate.” –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

While you’re listening to this podcast, my wife and I are away on a cruise. We’re able to do that again this year because we’ve built a substantial property portfolio that gives us the lifestyle we enjoy.  I’m not showing off. What I’m suggesting is you should also build a substantial asset base to give you choices in life.  How are you going to do that? How are you going to be different from all those investors who don’t get past their first or second property?  The answer is to learn from those who have already succeeded – who’ve achieved what you want to achieve.  That’s what Pete Wargent and I are going to talk about in today’s show. Pete will tell us what he learned from successful investors at last year’s wealth retreat.  I’ll also share something special in today’s mindset moment.  Wealth Retreat  Pete Wargent is one of the regular presenters at Wealth Retreat. But he attends to learn as well as present. Today he’s going to share some of the tips he learned at last year’s Wealth Retreat.  There’s not one property market There are multiple property markets around Australia all at different stages of their own cycle. In a boom, everything sells. But when a downturn comes, you can see how much better well-appointed properties hold their value.  That’s why you need a tried and tested formula and an investment strategy that always works, not one that only works right now.  If you want to grow your business, you need a business coach You never know which nuggets of advice are going to make all the difference.  Even if you’re already successful in your own right, you can still use advice from other successful people. It helps to have someone to hold you accountable.  The power of networking The most successful people always have the most powerful networks, so anything that you can do to build a network of successful, like-minded, and powerful people can only help. But there’s only so much time in your life to make connections, so an event like the Wealth Retreat is a perfect opportunity to meet with the right sort of people.  Links and Resources:  Michael Yardney Metropole Property Strategists Pete Wargent  Join us at Wealth Retreat 2020 in June 2020 – read all about it here now and express your interest Show notes plus more: The 3 big lessons I learned from successful investors at Wealth Retreat with Pete Wargent Some of our favourite quotes from the show:  “It’s isolating, it’s hard on your own and you need a tribe around you. But you need the right people.” – Michael Yardney “Why not, while you are an employee, set up your own business on the side.” – Michael Yardney “Failure is never permanent. That sinking feeling that you’ve got, that will never last forever.” – 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

These are times of financial and economic turmoil. With the current uncertainty and many changes on the horizon, it’s time to go back to the big picture. In today’s episode, I’ll be discussing 24 things all investors and entrepreneurs should understand about the way property investing and the economy work. A favourite columnist of mine, Morgan Housel, wrote a great column about 122 things everyone should know about investing and the economy. Today we’re going to talk about 24 of those big picture ideas that everyone should understand about investing and the economy. Saying “I’ll be greedy when others are fearful” is easier than actually doing it.  When most people say they want to be a millionaire, what they really mean is “I want to spend $1 million,” which is literally the opposite of being a millionaire.  Daniel Kahneman’s book Thinking Fast and Slow begins, “The premise of this book is that it is easier to recognise other people’s mistakes than your own.” This should be every market commentator’s motto. As Erik Falkenstein says: “In expert tennis, 80% of the points are won, while in amateur tennis, 80% are lost. The same is true for wrestling, chess, and investing: Beginners should focus on avoiding mistakes, experts on making great moves.”  There is a difference between, “He predicted the crash of 2008,” and “He predicted crashes, one of which happened to occur in 2008.” It’s important to know the difference when praising investors. Wealth is relative. As comedian Chris Rock said, “If Bill Gates woke up with Oprah’s money he’d jump out the window.” The Financial Times wrote, “In 2008 the three most admired personalities in sport were probably Tiger Woods, Lance Armstrong and Oscar Pistorius.”
The same falls from grace happen in investing. Choose your role models carefully. Investor Nick Murray once said, “Timing the market is a fool’s game, whereas time in the market is your greatest natural advantage.” Remember this the next time you’re compelled to cash out.  Jason Zweig writes, “The advice that sounds the best in the short run is always the most dangerous in the long run.” Billionaire investor Ray Dalio once said, “The more you think you know, the more closed-minded you’ll be.” Repeat this line to yourself the next time you’re certain of something.   John Reed once wrote, “When you first start to study a field, it seems like you have to memorise a zillion things. You don’t. What you need is to identify the core principles — generally three to twelve of them — that govern the field. The million things you thought you had to memorise are simply various combinations of the core principles.” Keep that in mind when getting frustrated over complicated financial formulas. James Grant says, “Successful investing is about having people agree with you … later.” Scott Adams writes, “A person with a flexible schedule and average resources will
be happier than a rich person who has everything except a flexible schedule. Step one in your search for happiness is to continually work toward having control of your schedule.” Investors want to believe in someone. Forecasters want to earn a living. One of those groups is going to be disappointed. I think you know which. As the saying goes, “Save a little bit of money each month, and at the end of the year you’ll be surprised at how little you still have.”  John Maynard Keynes once wrote, “It is safer to be a speculator than an investor in the sense that a speculator is one who runs risks of which he is aware and an investor is one who runs risks of which he is unaware.” Our memories of financial history seem to extend about a decade back. “Time heals all wounds,” the saying goes. It also erases many important lessons.  You are under no obligation to read or watch financial news. If you do, you are under no obligation to take any of it seriously. Most economic news that we think is important doesn’t matter in the long run. Derek Thompson of The Atlantic once wrote, “I’ve written hundreds of articles about the economy in the last two years. But I think I can reduce those thousands of words to one sentence. Things got better, slowly.”  The “evidence is unequivocal,” Daniel Kahneman writes, “there’s a great deal more luck than skill in people getting very rich.” There is a strong correlation between knowledge and humility. The best investors realise how little they know. Not a single person in the world knows what the market will do in the short run. The more someone is on TV, the less likely his or her predictions are to come true.  How long you stay invested for will likely be the single most important factor determining how well you do at investing. Links and Resources: Michael Yardney Metropole Property Strategists National Property and Economic Market Update 1 day Trainings   use the coupon code: PODCAST 122 Things Everyone Should Know About Investing and the Economy by Morgan Housel Show notes plus more here: 24 Things everyone should know about investing and the economy – Summer Series Some of our favourite quotes from the show: ”As rational people, we often act very irrationally when it comes to money.” –Michael Yardney “Don’t compare your life with the highlight reel that people put on Facebook and Instagram.” –Michael Yardney “Those people who are prepared to take action today, in five years’ time or ten years’ time are going to look smart.” –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 how property professionals do their research? If you’re interested in finding properties that will outperform the market, this episode is for you. The most research many property investors do is finding a property that they already like, then looking for information that confirms their biases. However, sophisticated investors take a more strategic approach. Today, Kate Forbes, National Director of Property Strategy at Metropole, gives us a detailed picture of how the professionals at Metropole do their research. Metropole’s top down approach This starts with examining the macro factors affecting our property markets and drills down to the micro level. Start by looking at the big picture – the macro-economic environment. Look for the right state in which to invest – one that will outperform the Australian market averages because of its economic growth and population growth. Within that state, look for the suburbs that will outperform with regards to capital growth. It’s all about demographics. These suburbs tend to be areas where more owner-occupiers want to live because of lifestyle choices and where the locals can afford to and will be prepared to pay a premium to live because they have higher disposable incomes. Look for the right location within that suburb. Some livable streets will always outperform others and in those streets, some properties will always be more desirable than others. Then within that location look for the right property. And finally, only buy at... The right price, but I’m not suggesting a “cheap” property – there will always be cheap properties around in secondary locations. I mean the right property at a good price.  6 Stranded Strategic Approach Only buy a property: That would appeal to owner occupiers. Not because you plan to sell the property, but because owner occupiers will buy similar properties pushing up local real estate values. This will be particularly important in the future as the percentage of investors in the market is likely to diminish That is below intrinsic value – that’s why you should avoid new and off-the-plan properties which come at a premium price. With a high land to asset ratio – that doesn’t necessarily mean a large block of land, but one where the land component makes up a significant part of the asset value. That is in an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area as mentioned above. That has a twist – something unique, or special, different or scarce about the property, and finally; Where you can manufacture capital growth through refurbishment, renovations or redevelopment rather than waiting for the market to do the heavy lifting as we’re heading into a period of lower capital growth. By following my 6 Stranded Strategic Approach, you minimise your risks and maximise your upside. Each strand represents a way of making money from property and combining all six is a powerful way of putting the odds in your favour. If one strand lets you down, they have two or three others supporting their property’s performance. When you look at it this way, buying a property strategically takes a lot of time, effort, research and something most investors never attain – perspective. What I mean by this is you can gain a lot of knowledge over the Internet or by reading books or magazines but what you can't gain is experience. It takes many years to develop the perspective to understand what makes an investment grade property. Links and Resources: Michael Yardney Metropole  Michael Yardney’s Mentorship Program Kate Forbes Show notes plus more : How to Research the Property Markets Like a Professional Some of our favourite quotes from the show: “We’re not looking for properties that are affordable to everybody, we’re looking for areas where people have got a high disposable income and can afford to, but more importantly are prepared to, pay a premium.” – Michael Yardney “If you buy a property to which you can add value through renovations or refurbishments, that will allow you to add some capital growth.” – Michael Yardney “Understanding the neighbourhood is not the same as understanding the market. You may understand where the shops are and where the school zones are, but that’s very different to understanding the depth of the market.” – 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.

Some goals are very hard to reach. Some are not so hard.  That’s why climbing is often used as an inspirational metaphor for reaching new goals.  It’s well into a new year, you’ve probably set some goals for the year or even for the new decade.  Today we’re going to talk about climbing to the top of the mountain wanting to reach the top of the mountain, even though it’s going to be hard, even though you know the trip will be long.  I’ll have a chat with Tom Corley. We’ll show you how you can prepare yourself for the path you need to take to reach the top of the mountain.  Everyone wants to be on top of the mountain but few are willing to make the climb When things don’t go as planned, most people quit the struggle and move on to greener (meaning – easier) pastures. And the world is filled with quitters.Even for the vast majority who are content with just coasting along, life is still filled with problems. Most people want to minimize their problems.They don’t want to add more problems to their lives. That’s why self-made millionaires are so rare According to my Rich Habits research, only 3% who pursue a dream, stick with it until they succeed.  At some point, 97% quit.Here’s why. The pursuit of a dream, big goal or major initiative means – more problems. More obstacles to overcome.More stress. More emotional heartache, especially when things don’t go as planned.And when you’re pursuing a dream, big goal or major initiative, nothing ever goes as planned.The pursuit of success is all about facing problems. And realizing success is all about solving those problems you face along the journey.Not surprisingly, most avoid pursuing their dreamsThey look at the mountain they must climb and say to themselves – “too many problems”.For the courageous few who throw caution to the wind and take action on their dreams, their life becomes a seemingly never-ending battle to overcome problems. There’s just no sugar coating it – the pursuit of success is an uphill climb that requires many years of problem-solving.But, for the 3% who refuse to quit on their dreams, success is inevitable.Those 3% learn an enormous amount during their journey as a result of solving problems.Plus, when you persist, eventually you get lucky. Luck favours the persistent.That unexpected luck, like a ski-lift, carries you effortlessly up the rest of the mountain.The key, therefore, is to persist until luck finds you.When you get to the top of your mountain, the first thing you will notice is that there are not that many people.That’s because all of the people are at the bottom of the mountain looking up at you. Everyone wants to be on top of the mountain. It’s just that not that many people are willing to climb it. Links and Resources:  Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits  Show notes plus more here: Everyone wants to be on top of the mountain but few are willing to make the climb | RICH HABITS, POOR HABITS Podcast Some of our favourite quotes from the show:  “Most people aren’t going to keep their New Year’s resolutions.” – Michael Yardney “Those who get to the top of the tree recognize that the reward at the end is worth it. If it was easy, there wouldn’t be a big reward.” –Michael Yardney “I think the other thing that they need to get to the top of the mountain is to have a Sherpa, have a trainer, have a coach, have a guide to get them there. Somebody who’s already done it a couple of times.” –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.

You rarely see psychology discussed alongside business and investment, but I believe that psychology is foundational to entrepreneurial success. Your mindset matters when it comes to achievement. In today’s episode, I’m going to chat with Pete Wargent and discuss his 6 rules for wealth creation. Some of them may surprise you. 6 Rules for Wealth Creation: Increase Your Self-Esteem – People with low self-esteem may unconsciously sabotage their own success, because they don’t believe they deserve it. Work on retraining your brain to think positively. Think Long-Term – True wealth is built slowly over time. Follow this principle and exploit the power of compound growth. Study and Counsel with Wise People – If you want to be successful, learn from successful people. Mentors can help you realize your full potential. Pay Yourself First – Make yourself your first priority. Save and then invest a decent sum first, then pay your other bills. Control Your Expenditures – You need to know where your money is going. Study your expenditures and see how you can close gaps where you’re spending money unnecessarily. Take Action – You can’t be successful if you never make a move. Take massive and consistent action and refuse to give up. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney’s Mentorship Program Pete Wargent Show notes plus more here: Pete Wargent’s 6 Rules for Wealth Creation Some of our favourite quotes from the show: “You can change the way you think about yourself, you can change your habits, you can upgrade your financial thermostat, and that’s through personal development.” – Michael Yardney “Most of what you do all day is unconscious, is at the subconscious level. You don’t even realize it.” – Michael Yardney “I think the message is spend less than you earn, and then save that difference, and overtime invest that money.” – 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.

Who do you ask for property advice? With so many mixed messages and vested interests, who can you really trust? Our annual Property Investor Consumer Sentiment Survey revealed the many and varied sources that property investors consult for advice. But since most property investors fail to achieve the financial freedom they deserve, and with less than 8% ever owning more than 2 properties, a better question to ask would be…who should you be asking for advice? Today's podcast is designed to help you cut through the clutter: Let’s start with who could you ask for property investment advice? Here are the people you could turn to: No One Friends or family A real estate agent A mortgage broker An accountant Financial planners A property marketer Investment seminars and workshops A property mentor A buyer’s agent When you look at this list you can now see why you need… an independent, unbiased property adviser or strategist. In my mind, it is critical to have a trusted advisor when making property investment decisions. It’s just too hard to do it on your own or by trial and error. There’s a huge learning fee involved — of time, money, effort and heartache. Here’s a list of some of the things a good property advisor can (should) do: A good advisor will first start by getting to know their clients’ hopes and fears and then be future-focused to help them achieve their long-term financial goals.  With so many mixed messages about property investing out there (many coming from parties with vested interests), a good property advisor will help remove his client’s anxiety by simplifying the complex. While most buyers’ agents or property sales people are transactional and think of the current “sale” or purchase, a professional property advisor will aim to develop a long-term relationship and help their clients understand the next two or three steps even before taking the first step.  Many clients come to a real estate advisor looking for the next big thing — some are looking for a shortcut, or the next hotspot, or a way to get rich quickly.Instead, a qualified property strategist will stop their clients speculating by recommending proven strategies that have always worked.  A good independent advisor will not have any properties for sale but will have a list of potential options and refer their clients to a buyer’s agent who is part of their team to find the best opportunity in the market to suit their client’s budget, plans and risk profile. A strategic advisor will never put any pressure on their client to make an investment decision, but their knowledge, research and experience will help their clients select an investment property that is the highest and best use of their funds, and one that will work hard for them over the long term. A wise property strategist will help their clients avoid the big mistakes made by the average investor and will earn their fees simply by helping their clients avoid the devastating errors made by many investors such as those who lost significant amounts of money by investing in mining towns, regional locations, house and land packages or off-the-plan properties. By being a student of history, a good strategist will be able to provide perspective, insights and often optimism at a time when the media is being pessimistic, and vice versa. They will also advise their clients to invest their money the way they do themselves — they must be experienced investors — not enthusiastic amateurs. A good strategist will regularly meet with their clients to objectively assess the performance of their property portfolio and ensure they are heading in the right financial direction. As you can see — it takes years of learning, experience and the perspective that only comes from investing through a number of property cycles to become a great property strategist. Let’s look at some things a property advisor can’t do: Even a good advisor cannot predict the future. They won’t be able to tell you how the market will perform, what will happen to interest rates or what capital growth rate a particular property will achieve.  They won’t be able to find the next hot spot for you, yet many so-called advisors suggest they can. In essence they give their clients what they are requesting, rather than what they need — sound, solid advice. Even the most qualified advisor won’t be able to pick the best time to purchase an investment property other than to remind you that the best time to invest was 20 years ago, and the second best time is today. A good advisor won’t be able to help you get rich quickly or achieve extraordinarily high returns without taking on extra risks.  What is the difference between a property strategist and a buyer’s agent? Buyers agents are order takers — they will fill an order given to them to find you a property and will be biased towards the areas they have expertise in, but this may not be in your best interests.   Only a property strategist has the expertise to design that “order” to suit your specific needs. They will be your long-term wealth creation partner, annually reviewing the performance of your property portfolio, and will provide recommendations on any opportunities as well as when it’s best for you to do nothing.  Here are some signs that you’re dealing with a property spruiker. They have a one-size fits all approach They don’t talk about the risks They talk a lot about investing but don’t do it themselves Beware of someone who: Has a stock list of properties to sell you. Offers you a property rather than an investment strategy. Red Flags Gives “advice” before they’ve found out all about you, your needs, your plans, your risk profile. Offers a “one stop shop.” Particularly if they want you to use their lawyers, rather than your own who should vet any contract carefully. Tells you that negative gearing is a sound property strategy (because it’s not an investment strategy at all — it’s a consequence of how you finance your property.) Suggests property values always keep rising. Offers a rental guarantee to sweeten the deal. Pressures you into saying yes quickly to whatever it is they’re offering, whether it’s deciding to attend a seminar, signing up with their company to gain advice and any other sales tactics. Downplays the risks and related costs that are involved in property investing, and/or has an inability to substantiate their claims of profit and success. If they’ve helped so many people achieve success, where is the proof of that? Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney’s Mentorship Program Show notes plus more here: How to choose a property advisor and avoid property spruikers  Some of our favourite quotes from the show:  “While they may know their local neighborhood, that’s very different to understanding property markets and property investment.” – Michael Yardney “Some mentors are thinly-disguised salespeople.” – Michael Yardney “Put simply, if the advice is free, you’re the product.” – 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.

Well, it's the beginning of the New Year, in fact, the beginning of a new decade. It wasn't that long ago I remember the turn-of-the-century when we were all worried about the Y2K bug. All those predictions of mayhem that didn't occur. In fact, we are now 20% through the 21st century – that's a scary thought isn't it. So, what's ahead for the new decade?  I'm sure there will be lots of scary predictions, and my first prediction is that most predictions will be wrong. But to get an idea of what might remain the same over the next decade and what might be different let's have a chat with Australia's leading housing economist Dr. Andrew Wilson and chief economist of myhousingmarket.com.au  What will stay the same: Australia’s population will keep growing and adding around 400,000 people per annum Net migration will account for over half this increase The population growth will remain concentrated in Melbourne, Sydney, and Brisbane We’ll have the requirement for 170 -190,000 new dwellings each year Property prices will continue to increase because Australians including the hundreds of thousands of new migrants will continue to aspire to homeownership. Property investment will remain the way many Australia’s secure their financial futures and more Australian’s will turn to property investment as the returns for other asset classes dwindle. The property pessimists will still be out there telling us our property markets are going to crash Property spruikers and get rich quick artists will still be there taking money from naïve property investors looking to get rich quick More of us will move to medium and high-density living – apartments and townhouses – the dream of owning a quarter acre block will be nearly gone The younger generations will continue to leave regional Australia for the big smoke  What will be different: Low interest rate, low inflation, low wages growth environment Cycles may be flatter because of the above Most Baby Boomers will have retired and Gen X will be coming up to retirement age Pension system won’t be able to cope, and superannuation won’t be enough to support your longer life 30-40% of the jobs we know could disappear in the next decade Links and Resources:  Michael Yardney Metropole Property Strategists Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au Show noters plus more here: What’s ahead for property in this new decade? With Dr. Andrew Wilson Some of our favourite quotes from the show:  “If we want to decentralise, there’s going to have to be some different policies.” – Michael Yardney “People are going to trade backyards for balconies and courtyards, they’re going to want, as our cities become bigger, be in closer proximity to amenities, to lifestyle, to public transport.” – Michael Yardney “Owner-occupiers go into the market with very different headspace than investors. So, it’s lovely to be able to invest in a market that’s not dominated by investors.” – 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

Depending upon when you’re listening to this, it’s either just about to become a new year, or you’re already into a new year and a new decade.  Today, I’m going to discuss twelve things that are going to change over the next decade and ten things that are not.  This is the end of my fifth decade investing in property and being able to look back and see what’s gone on gives me some great perspective on what’s ahead.  I’ve done a lot of research for this, and whether you’re interested in property as an investor or a homebuyer, you’ll get a lot out of today’s episode.  The difference between Expectations and Forecasts There is a huge difference between, “I expect another next property downturn sometime in the next decade” and “I expect the next property downturn in the second half of 2024.”  One of the big differences is how I invest. If I expect another property boom followed by another property bust, I’m not surprised when they come.  But since I don’t know when they’ll come, I won’t make the focus of my property investing trying to time the property cycle.  Because trying to time the property cycle is one of the reasons many property investors fail.  On the other hand, strategic investors maximise their profits during booms and minimise their downside during busts by investing in assets that have always outperformed, rather than looking for the next hot spot or for the type of property strategy that works “now” rather than one that has worked in the long term. They own investment-grade assets in investment-grade inner and middle ring suburbs of Australia’s three big capital cities. The type of property that keeps growing in value over time without fluctuating wildly in price when the property cycle slows down. What will stay the same: Australia’s population will keep growing and adding around 400,000 people per annum.  We’ll have the requirement for 170 -190,000 new dwellings each year More congestion on our roads.  Property prices will continue to increase -  The property cycle will continue,  Ordinary Australians will try to secure their financial future through property investment The property pessimists will still be out there telling us our property markets are going to crash Property spruikers and get rich quick artists will still be there taking money from naïve property investors looking to get rich quick More will move to medium and high-density living – apartments and townhouses – the dream of owning a quarter acre block will be nearly gone The property pessimists will still be there telling us we’re in a bubble that will burst We will be living in the best country in the world at the best time in history  What will be different: We will have a long period of low-interest rates and we’ll be in a low inflation environment for much of the decade. This means we won’t get the same level of capital growth as we have in the past In line with the low inflationary environment, most Australians will experience limited wage growth over the next years and this will impact on their ability to afford property.  Lower levels of homeownership  Future property cycles may be flatter because of the above – you will still be cycles but lower highs and higher lows. More people are living in blended households. Household size is increasing according to the census. The proportion of those living alone or as a couple over 60 years of age will have increased too, especially women over 60 years; sadly, most with limited financial means. At the other extreme, there is an increase in those living alone or as a couple, plus an increase in blended households as noted above – coupled with a drop in what many still think is the standard Aussie household, mum and dad and 2.5 kids.  Plus, the mix from overseas has changed, with more migrants now coming from those countries with large family units. 30-40% of the jobs we know could disappear in the next decade and there will be casualisation of the workforce  Most Baby Boomers will have retired and Gex X will be coming up to retirement age  Pension system won’t be able to cope and super won’t be enough to support your longer life China will become more powerful Maybe a cashless society New technology we haven’t even dreamed of Links and Resources:  Michael Yardney Metropole Property Strategists Brett Warren, Director Metropole Properties Brisbane Sow notes plus more here: A dozen things that will change in property over the next decade and 10 things that will stay the same Some of our favourite quotes from the show:  “In my mind, there’s a big difference between expectations and a forecast.” – Michael Yardney “I’ve found it’s more practical to have expectations without forecasts.” – Michael Yardney “The rich are getting richer, and that’s because they own assets. So even though their incomes haven’t gone up, their assets have increased in value.” – 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