Property Investment, Success & Money | The Michael Yardney Podcast

Would you like Lifetime Wealth? Well…today we’ll explain what that means and how you could achieve it as I replay a chat I had with my good friends Louise Bedford and Chris Tate from The Trading Game as we discuss the concept of true wealth. How to Obtain Lifetime Wealth Michael shares how he bought his first investment property over 40 years ago. He’s made plenty of mistakes, but has still built a substantial property portfolio. He also gives back. To be truly wealthy you need much more than just money. You need money plus family, friends, health, spirituality, growth, and contribution. Chris shares his background. It is similar to Michael’s but replace the word property with shares. How children absorb things without being taught directly. Legacy and leaving a ripple or something outside of you that carries on when you are gone. We learned about money, wealth, and riches from our parents and culture. What is your financial thermostat set for? You’ll be surprised – it’s set for what you have already got. Your thermostat won’t change until you change and throw away the blame. The imposter syndrome or undeserved success. Not feeling worthy and self-sabotaging. Self-awareness deserving your success. How people believe the tool has something to do with their success, when it is actually the software that makes a success. How people who’s views are mismatched may not be a match as a couple. The disconnect can produce tension and tear relationships apart. Couple’s need to talk about their views about money. Partners need to be compatible on a whole host of issues. In the old day’s people passed their trades on. Now property or shares can be passed to your kids, but it is not what you leave your kids it is what you leave in your kids. How we learn about money from our parents whether it is spoken or unspoken. Replacing non-productive beliefs with empowering beliefs. Teaching kids about training by loaning them money to trade and letting them keep half of the profits. How IQ and socioeconomic status can be linked. The importance of mentorship and getting together with other entrepreneurs. Find like minded people and the isolation disappears. How attending Wealth Retreat can help change your mindset and money habits. Links and resources: Michael Yardney Metropole Wealth Retreat Chris Tate Louise Bedford Our favourite show quotes: “Wealth isn’t about how much money you have, but what you’re left with if you lost everything and had to rebuild it.” Michael Yardney “You either have to pay the world, the market, or your mentors when learning about investing.” Michael Yardney “If you took all of the money in the world and divided it equally it would all end up in the same pockets again.” Michael Yardney

There are so many common misconceptions that people just don’t question.  In fact, there’s so much misinformation surrounding wealth creation, that in today’s episode, I’m going to debunk 15 common myths.  If there’s one thing I’ve learned, it’s that you shouldn’t allow these kinds of blanket statements to hold you back.  In this episode we’ll explore these statements and help you avoid the “woulda, coulda, shouldas.” Money doesn’t discriminate; it doesn’t care who you are or where you come from.  No matter what you did yesterday, today begins anew and you have the same rights and opportunities as everyone else to become wealthy. Yet the sad reality is that the majority of Australians will never achieve financial freedom. On the other hand a small group of Australian property investors become very wealthy. Today I’d like to explore the common myths about money that hold many people back from achieving their financial goals. Myth # 1: It takes money to make money Many Australians have untapped equity in their homes that they can use as seed capital for investments, while others will have to learn the discipline of saving to get some startup capital.  You don’t need a fortune to begin making your first million; you just need to commit to making a start and stick with it. Myth # 2:  I don’t make enough money Everyone makes enough money to become an investor. The truth is most people don’t have an income problem, they have a spending problem. Look at your current wage and ask yourself; how much am I likely to earn over my lifetime? You’ve got to start living within your means, paying yourself first, saving a deposit for a property and investing in order to break your current pattern. Myth # 3: My job and superannuation will take care of my financial future If you accept my definition of financial freedom as having enough passive income to finance the lifestyle you desire, without having to work; you will never achieve this through your job or superannuation. Instead you will need to take control of your financial future by investing. Myth # 4:  I’m not smart enough In our country everybody has the ability and opportunity to become rich.  To reassure you that an education doesn’t equal a financial fortune, here are a few multi-millionaires who never graduated from college: Bill Gates (Microsoft), Michael Dell (Dell Computers) and Steve Jobs (Apple). Myth # 5: Investing is complicated Developing your own financial freedom is only as complicated as you make it. Investing is no different. The key is to learn from the right people – those who’ve already achieved what you want to achieve. The process is also simplified when you select an investment niche such as residential property investment and develop specialist knowledge in that area. Myth # 6: Investing is risky Many people speculate when they think they are investing – they buy a property in a secondary location or off the plan “hoping” it will increase in value. Speculation is risky. On the other hand finding a property with an element of scarcity so it will always be in strong demand, in an area that has always outperformed the averages and buying it below its intrinsic value, is a proven investment strategy that minimises your risk. Myth # 7:  You have to know how to time the investment markets It’s often said that timing is everything when investing, but that’s not really the case.  Have you noticed how some investors do well in good times and do just as well in bad times, while others do poorly in good times and even worse in bad times? This suggests to me that it's not our external world that determines whether we make money; it's something inside us - our mindset. Myth # 8:  The rich are lucky The truth is that success in wealth creation is no more about luck than is success in anything else in life. To become wealthy you have to be in control of your finances and not count on good fortune. Myth # 9:  To become rich you must diversify Wrong! Yet that’s what most financial planners suggest isn’t it? Diversification leads to an average outcome. Myth # 10: Paying off your house provides security The problem here is that once you’ve paid off your house, you end up with idle equity sitting under your roof doing nothing; equity you could use as a deposit to buy an investment property and grow your wealth. Myth # 11: All the good investments are taken That’s not true – opportunities are always out there – in every market. Sure, all of yesterday’s deals have been taken, but tomorrow’s deals have not. Someone will snap them up. Why shouldn’t it be you? Myth # 12:  If you want to do it right, you have to do it yourself There’s no such thing as a self made millionaire. All successful property investors have a good team of professional advisors and supportive mentors around them.  The rich recognise that they can’t be an expert in all aspects of wealth creation, so they find a team of experts they can lead in order to help them achieve their goals. Myth # 13:  I’ve done everything wrong! It’s too late There are many success stories of people who conquered all sorts of adversity, or started investing later in life and ended up achieving financial freedom. In fact Ray Croc was over 50 years old when he built his very first fast food outlet. You might have heard of it – it’s called McDonald’s. Myth # 14: Debt is bad Most Australians believe debt is a dirty word, but not all debt is bad. Savvy property investors know how to use good debt to buy appreciating assets. Myth # 15: It doesn’t matter what I want – I just can’t do it Subscribing to this myth is almost a guarantee of failure, because our beliefs and perceptions become our reality. There’s no way money can know who’s in control of it, what their qualifications are, what ambitions they have or what they’re going to do with it. Money is there to be used and spent, saved and invested. It can’t judge whether you’re worthy or not. Now that you understand some of the myths that have held so many people back, the good news is you can do things differently. Choose to change your beliefs to produce outrageous results and reach every goal you set. Links and Resources:  Michael Yardney Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Some of our favourite quotes from the show:  “Despite what some people believe, it doesn’t really take a lot of money to make money.” – Michael Yardney “Successful people come from different backgrounds and while some have university degrees, others never finished high school.” – Michael Yardney “It’s never too late to learn how to invest. It’s never too late to overcome your mistakes.” – Michael Yardney More details plus show notes here: Fifteen wealth myths that hold you back 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 facts are in again, and they show that the rich are getting richer.  If you’re a regular listener, you know that we’ve said that on many occasions.  But today I’m having a conversation with Michele Levine, CEO of Roy Morgan, Australia’s longest-established research company who recently released an Australian wealth report that’s very different from all the other reports.  We’re going to dig in and explain what’s really been going on over the past 10 to 15 years with some interesting findings.  We chat about why the rich are getting richer and why the average Australian hasn’t moved forward with their wealth over the past decade or so.  We’re going to explain about men and women and why their wealth has changed.  Hopefully, this information will help to put you in the right position to become wealthier.  Then, in my mindset message, we’re going to discuss why you don’t want to cover the world in leather What does that mean? Listen in to find out. Key Takeaways from the Australian Wealth Report The rich are getting richer, but on average, Australians are all getting richer In Australia, the top 10% of people hold 47% of the wealth The bottom 50% hold 3.6% of the wealth The data shows that while Australian’s wealth wobbled a bit during the global financial crisis, it didn’t hit Australians anywhere near as hard as it hit other countries. Australian wealth has almost doubled since the GFC Just before the GFC, Australians held 4.5 trillion dollars Now it’s 8.6 trillion, or 90% more wealth Of Australia’s 8.6 trillion dollars in wealth, about 6 trillion is in property Australia’s debt is about 1.2 trillion Looking at the median wealth for individual Australians, it’s down a little bit – about 2% The top 30% have increased by 60-65% The bottom 30% have gone up by similar amounts But the 40% in the middle haven’t seen the same level of increase. Their increase has been around 20%.  When you apply a CPI adjustment, you can see why the people in the middle feel less wealthy. Women still trail men in wealth. The average man has $445,000 in net wealth. The average woman has $393,00 In 2007, women had 80% of the male average wealth. Now they have about 88%. They’re catching up, but they’re not there yet Links and Resources:  Michael Yardney Metropole Property Strategists Michele Levine, CEO Roy Morgan Research Institute More details and show notes here: The latest Australian Research is in. Here’s what’s happening to your wealth Some of our favourite quotes from the show:  “Even though there are headwinds ahead, we’re still living in a fantastic time and we’re lucky to be in Australia.” – Michael Yardney “That’s how we tend to approach things. We think if we can just get rid of them, or cover them with leather, our pain’s going to go away.” – Michael Yardney “If you put on shoes when you walk across the boiling sand, the cut glass and the thorns won’t bother you.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We have all experienced stress.  Whether it is at home, at work, in our own business, stress feels an unavoidable part of our busy lives.  It’s the unavoidable part I want to focus on.  It may be that seeing stress as something we should seek to avoid is what actually heightens its negative impact.  Rather than seeing stress as something to avoid or a necessary evil there are ways in which we can look at stress as an opportunity. Stress is actually mental energy that can be harnessed.  Stress basics:  It’s worth remembering that stress is a neuro physiological reaction to danger.  When we stress and allow that stress to have a negative impact, we become physically tense. Blood flow is restricted to our muscles and even to our brain. Stanford University’s Kelly McGonigal refers to this process and the connection to stress headaches.  As our muscles are deprived of blood flow, we often feel tired, lethargic and may even suffer from stress-related aches and pains, not to mention lower resistance to infection, making us unwell.  Step 1: change the view and harness the stress  Let’s go back to when stress was a valuable tool to warn us of danger. When the caveman or woman stepped out of the cave they had to determine whether that rustling in the bush was, in fact, a Sabretooth tiger.  Stress in that situation is used to protect, blood brings more glucose to muscles to prepare to fight and more oxygen to the brain for clearer thinking.  The point is that when stress presents itself, we are far more likely to be able to cope with it if we can change the view of it, in other words, we turn it from foe to friend.  Step 2: Remember Stress builds Resilience  Military training shows soldiers how to grow from stress.  Dan Pronk talks about the physical, emotional and psychological stress special forces soldiers are placed under.  The purpose of that generated stress is to build resilience, to help them to become stronger, learn, grow and to use the stress responses in a positive way.  The point here is that if you take the right mindset approach to stress then you can actually use it as a tool to grow and improve.  Next time stress rears its head, take a look at the cause and ask yourself how you can turn your approach into one of a challenge to be accepted or an opportunity to be capitalized on rather than a sign of defeat.  Step 3: Remember there is always help No matter how diabolically stressful a situation may be it is important to remember that help is ALWAYS available. Thinks about some of the terrible things you see on the TV news, whether its fires, riots. Terror, in each case, as the news shows footage of people fleeing and running for their lives there is always someone running the other way, toward danger, to help! Helping is a huge part of normal human behaviour and not just the realm of professionals, so it’s worth keeping in mind that when stress hits, reach out. That’s the benefit of a mastermind.  Remember these four things: Stress is normal, we all encounter it. Your body’s natural response to stress is actually designed to help not hinder Stress can actually help you to grow, learn and build resilience There is always someone who can help.  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: Here’s how to deal with stress in a positive way | Build a Business, Not a Job Podcast Some of our favourite quotes from the show:  “This is just part of the journey, part of climbing the mountain. And not many people are prepared to take that climb, that makes you breathe harder and your pulse run faster.” – Michael Yardney “Rather than when something happens, letting it ruin your whole day, somebody who’s learned how to cope with stress keeps these inconveniences in proper perspective.” – Michael Yardney “Isolation is one of the challenges successful business people, entrepreneurs, and professionals have, but it’s one of the things that causes their stress as well.” – Michael Yardney    Show notes plus more at the show webpage: Here’s how to deal with stress in a positive way | 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.

If you want to become a more successful property investor, today’s show will point you in the right direction.  First, we’ll have a chat about where not to invest.  This aren’t just my thoughts. They are the results of a recent university study in Australia that shows where you shouldn’t invest. Most property investors never get past their first or second property. You don’t want to be in that group, do you? So paying attention to where not to invest can help you avoid falling into the trap that so many investors do.  I also have an interesting mindset message for you.  Finally, I’ll have a chat with Dr. Andrew Wilson about first home buyers, because they’re going make a difference to our property markets.  This discussion is relevant for first home buyers, but it’s also very relevant for property investors, as they’re often investing in the same price ranges and markets as first home buyers.  We’ll discuss our concerns about the first home buyers’ scheme that’s going to be starting soon. We’ll also look at what has happened when we had these schemes in the past.  Where not to invest if you want property success Most property investors never achieve the financial freedom they’re looking for. Of the 2.1 million property investors in Australia, 1.8 million never get past their first or second property while only 21,000 investors around Australia own 6 or more properties. A recently published report found that two-thirds of Australians buy an investment property close to where they live, rather than in another location that could outperform their hometown in the long run. These buyers felt safe buying in a familiar location, but there’s no indication that their familiarity actually gave them an advantage. The report also found that investors who invest in their own area pay higher prices and that one-fifth of investors self-manage their properties. Self-management can be a big mistake. Employing a property manager is a way of insuring your asset. It’s an investment, not an expense.  Buying locally and putting all of your eggs in one basket may feel safer, but that doesn’t mean that you’ll get the best return on your investment. Becoming a success in property investing requires more time and effort than just choosing properties near where you live.  But it doesn’t necessarily have to require your time and effort.  Turning to a buyers’ agent who has more market knowledge can help you get the strategic advice you need to invest in properties that are likely to outperform. First Home Buyers rush to market fearful of rising prices As of 1st January, the First Home Loan Deposit Scheme will allow first-home buyers to put up a 5 percent deposit, rather than the usual a 10 or 20 percent deposit. This will only be available for 10,000 eligible first-home buyers each year, and there are other restrictions as well.  First-home buyers wanting to use the scheme will be limited to properties sold for less than $700,000 in Sydney, $600,000 in Melbourne up to $475,000 in Brisbane and it will apply to owner-occupied loans on a principal and interest basis.  Price caps for large regional centers are the same as those for the capital city in their state. It also removes the cost of lenders mortgage insurance for first-home buyers with an annual income of up to $125,000 or couples with a combined $200,000 per year. If history repeats itself, these first-home buyers will push up values in certain locations. It may also commit first-home buyers to long term financial imprisonment Why is that? First-home buyers emboldened by the home loans obtained with their low deposits will be chasing a similar range of properties and the old supply and demand ratio will kick in pushing up property prices. First-home buyers who miss out on the lottery could end up paying more for their properties or have to wait another year for the next round of grants, by which time property values will be even higher. New homes come with a lot of extra expenses and those who haven’t developed a savings discipline could find themselves in financial strife. They’ll have to pay interest on a larger mortgage, but then they’re likely to go out and buy furniture and appliances as well, creating even more debt. This reminds me that the Government should be careful of the unintended consequences of hastily though out policies. 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  Show notes plus more here: - Where not to invest if you want property success | First Home Buyers rush to market fearful of rising prices Some of our favourite quotes from the show:  “Knowing your local area is not the same as understanding the dynamics of the local property markets and understanding what does or does not make a good investment property.” – Michael Yardney “If you just knew how resilient you are to life events, you’d take more risks.” – Michael Yardney “The key lies in your ability to adjust your expectations when things don’t go right.” – 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 felt like everyone else knows what they’re doing when you have no clue?  Do you sometimes believe your success is all about luck, but your failures are all you?  Do you wonder when the fraud police are going to come to kick down the door and drag you from your desk?  If the answer is yes to any of these, welcome to the imposter club!  The good and bad news is that it’s not a very exclusive club and almost all of us will be a member of this club at some stage in life.  In today’s podcast, I’ll have a chat with Louise Bedford, who has a degree in psychology, about what’s going on in your brain when you feel like a fraudster and how to try and push through those feelings.  What is Imposter Syndrome, and how does it affect you? The term “Imposter Syndrome” was coined by psychologists Pauline Clance and Suzanne Imes in the 1970s An estimated 70% of people experience these impostor feelings at some point in their lives Three main components of Imposter Syndrome: Feeling like a fake  Disregarding praise and achievements Attributing successes to good luck If investors don’t correct their thinking, they’ll self-sabotage Lies Imposter Syndrome Tells You Lie #1: You have self-doubt, so you will fail Lie #2: You can’t admit vulnerability Lie #3: You’re not ready Lie #4: It’s a matter of time until you blow it Lie #5: They don’t mean that praise, they’re just being nice  How can you get rid of Imposter Syndrome? Refuse to give your “inner lunatic” any light Practice self-awareness Take credit for small triumphs Keep a journal to record your thought patterns and your wins Seek constructive criticism on small matters Seek professional help if you need it Links and Resources:  Michael Yardney Metropole Property Strategists Louise Bedford – The Trading Game To download your Impostor Syndrome special report, click here:   To read more about Pauline Rose Clance and take the Impostor Syndrome quiz, click here Show notes plus more here: What you don’t know about Imposter Syndrome could hurt you as an investor Some of our favourite quotes from the show:  “If you suddenly come into wealth, whether it’s through property, whether it’s in lottery, whether it’s inheritance, I just see people over and over again sabotage themselves.” – Michael Yardney “I’m prepared to bet my money that spring’s going to come after winter this time too because it always has.” – Michael Yardney “I’m prepared to fail knowing that I’ve just found something that doesn’t work, and I’ll get to the next level.” – Michael Yardney  PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

When you look back on 2019, it’s going to be a watershed year for property, a year of two halves.  At the beginning of the year everyone was very nervous about the future of our property markets.  At the end of the year there’s so much more optimism.  Of course, there are still some economic issues and headwinds ahead for our property markets.  But we’ve recently conducted our annual Property Investor Sentiment Survey, so today, I want to share what 1,800 property investors are planning to do for 2020.  This will help you understand where you fit in with a wide range of other Australian investors as well as giving you a glimpse ahead, because investors do move our property markets.  Being Australia’s longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would-be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. I’m joined today by Sarah Megginson, editor of Your Investment Property Magazine. Investor profile shifted slightly: 2017 - 28% owned 5 or more properties 2019 - this had dropped to just 17% owning 5+ We’re not sure whether this reflects a drop in property ownership or a change in the type of people who are replying Rentvestors: 16% of respondents were rentvestors in 2019  Almost half (48%) the respondents would consider using it as a strategy to get into the market Investment Strategy: Investing for "Long term capital growth" and "buy, add value and hold" remain the two most popular property investing strategies Long term growth was the no.1 strategy for 59% in 2017; 51% in 2018; 49% in 2019. Add value and hold the property largely unchanged, 20% in 2017; 19% in 2018; 19% in 2019 - so around 1 in 5 investors adopting this strategy Sentiment:  People remain positive, as the majority reported that now is a good time to buy property in 2017 (61%), 2018 (52%) and 2019 (68%).  19% of respondents plan to buy a new home in 2020 – the same as last year (2019). This was down from 23% in 2018 (but still higher than the number planning to buy a new home 3 years ago (14%) Takeaways from our conversation: Watch out for analysis paralysis. Don’t buy investment properties for tax benefits. Treat your investment properties as a business. Negative gearing is not an investment strategy. This is the best countercyclical opportunity to invest in a long time. Don’t change your long-term strategy because of short-term circumstances. In today’s tighter finance environment, living off equity is very difficult.  If you want to outperform the averages, you need expert advice. But be careful who you ask. Links and Resources:  Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Sarah Megginson – editor Your Investment Property Magazine  Get the results of the 2019 Property Investor Sentiment survey here Show notes plus more here: Here’s what 1,800 investors think is going to happen to property in 2020 Some of our favourite quotes from the show:  “Don’t make 30-year decisions based on the last 30 minutes of news.” – Michael Yardney “The decision to buy a home doesn’t depend as much on the market as, I guess, your family circumstances.” – Michael Yardney “All the successful people I know don’t particularly want to retire, they just want to work at their pace, do what they want to do, when they want to do it, with whom they want to do it, and have choices.” –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 be rich and successful be like Spock. If you’re a Star Trek fan, you’ll really enjoy that segment where Tom Corley and I discuss controlling emotions as being one of the rich habits.  And even if you aren’t, you’re going to get a lot of good information out of it. Then, I’m going to teach you one of the lessons I learned many years ago.  It’s an extended mindset moment about the Law of Belief.  Once you understand the Law of Belief, you’re going to be much more in control of your life.  You’ll be able to develop some more rich habits and get rid of some poor habits.  Why You Want to Be Like Spock For the few listeners out there who have never heard of Dr. Spock, he is the Vulcan in the Star Trek series, books, and movies.  Spock’s overriding character trait was that he never expressed emotion and, thus, was ruled by logic.   There is a great deal of new brain science out there that explains how emotions, in particular, negative emotions, alter brain performance.   One of the most profound impacts emotions have on the brain is that they interfere with the operations of the Prefrontal Cortex.  Why is that a problem?  It’s a problem because the Prefrontal Cortex does numerous things, some of which impact your ability to live a successful, happy, healthy and wealthy life: Executive Command and Control – The Prefrontal Cortex is the area of the brain where logic and decision-making reside. Creativity – Insight, flashes of genius and intuition result from the joint communication between the Prefrontal Cortex and the Limbic system. Consciousness – Although consciousness is spread out among many areas of the brain, the Prefrontal Cortex is the CEO of consciousness and self-awareness. Emotional Control – The Prefrontal Cortex has the ability to stop emotions in their tracks, upon command. When your emotions erupt, you have two choices – let them flow or shut them down.  When you allow your emotions to flow, the Amygdala, one of the primary emotional centers of the brain, takes complete control of the brain by shutting down or overpowering the Prefrontal Cortex.  There are millions of people around the world, sitting behind bars, all because they allowed their Amygdala to control their behaviours and decision-making.  So, controlling your emotions keeps you out of trouble?  Yes, but it is much more than that. Controlling your emotions also happens to be critical to success, wealth, health and happiness.  When the Prefrontal Cortex is trained to control emotions, and this training becomes a habit, the Amygdala loses all power over you.   This allows you to intelligently and logically think through difficult situations, without any emotional interference.  Those who have trained themselves to be unemotional are able to tune out all negativity, no matter the source, and go on about their business.   Becoming successful is a process. Part of that process is learning to Be Like Spock and control your emotions. And, it’s a big part of that process. The Law of Belief Many years ago, I learned about the Law of Belief from Brian Tracy, one of my mentors. The Law of Belief states that whatever you believe with emotion, becomes your reality. The Law of Belief says that you don’t necessarily believe what you see, you see what you have already decided to believe. In other words, your beliefs control your reality.  You act in a manner consistent with your innermost beliefs and convictions. It’s not hard to tell what anyone believes by simply looking at what they’re doing. This is a foundational law in life. That means that without wholeheartedly believing that something can actually be part of your reality, it will always remain out of your reach, no matter how desperately you want. Our thoughts and our beliefs lead to our feelings, our feelings lead to our actions, and our actions lead to results.  But the great thing about the Law of Belief is that it’s reversible.  Our beliefs are built on a mixture of facts and fictitious perspectives. We learned the beliefs that we had when we were young.  Beliefs are nothing more than illusions of reality, and we’re all walking around with tinted glasses on. The problem is that we don’t know we’re wearing tinted glasses. Our self-limiting beliefs make up fundamental flaws in our psychology. The biggest part of success has to do with the way you think and the way you feel. All the good property advice and information in the world won’t be enough if you’re sabotaging yourself with self-limiting beliefs. But, if you engage in actions consistent with the beliefs you want to have about yourself and about your life, you can eventually develop the muscle – the beliefs – by lifting the right weights. Links and Resources:  Michael Yardney Metropole Tom Corely’s Rich Habits Blog Get your own copy of our international bestseller Rich Habits Poor Habits  Show notes plus more here: If you want to be rich and successful be like Spock PLUS the Law of Belief | RICH HABITS, POOR HABITS Podcast Some of our favourite quotes from the show:  “If you have a team, if you’ve got people that work with you, whether they’re employees, teammates, partners, you like working with people who are volatile and you don’t know what’s going to come out of their mouth next.” – Michael Yardney “That’s something I’m going to say now – be like Spock.” – Michael Yardney “It’s only what a person actually does that tells you what they truly believe.” – Michael Yardney PLEASE LEAVE US A REVIEW  Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

We know the Reserve Bank is determined to lower unemployment and increasing wages growth and inflation.  It’s attempting to do this by lowering interest rates and is even talking about other measures such as quantitative easing.  But what if this doesn’t work?  What if the only effect of lowering interest rates is pushing up property values, yet the economy doesn’t pick up?  That’s the subject of today’s chat with Dr. Andrew Wilson. We discuss some really interesting things about the economy, what’s happening overseas, and what it means for you, me, our wealth, for interest rates, and for our property markets.  But first, I’m going to share five property investment lessons you can learn from farmers and a mindset moment with you. 5 Lessons property investors can learn from farmers Look at your salary or wages the way a farmer looks at his seeds. Think about how and where you can ‘plant’ that income to create a return on your investment, instead of focusing on consumption and spending. Be patient and look after your investment the way a farmer tends his crops. As a property investor, you need to understand that long-term market cycles (as with the seasons) and time in the market will ultimately determine your capacity to produce a post-work income through real estate. Be selective with how you use your growing asset base like a farmer is selective with his harvest. As an investor, you need to keep an eye on your growing portfolio and know when to take out some profit. In the asset-building phase of your investment journey, you should only take out profit to reinvest for accelerated returns, just as a farmer re-sows the best seed to make sure each new crop is more bountiful than the last. Each new cycle should be seen as a chance to grow your wealth. Like the farmer, you don’t want to consume the fruits of your investment labors, but continue to look for new buying opportunities that will enable you to use that good quality profit to acquire even more good investment-grade properties.        Work your investment portfolio, the way a farmer works his land. For property investors, the lesson is to be an active participant in the growth and sustainability of your portfolio. This means taking care of your investments, regularly reviewing their performance and protecting them with necessary asset protection structures, cash flow buffers, and insurances. It also means keeping a close eye on the performance of your properties and if necessary, doing a bit of ‘weeding’ if you have underperforming assets that are threatening your harvest. What if rate cuts don’t work but only push up property values It seems the RBA is aware that their low-interest rate tactic may backfire. In the minutes of their October meeting, RBA board members stated that “policy stimulus might be less effective than past experience suggests.” The IMF’s World Economic Outlook cut its growth forecast for the Australian economy from 2.1 percent to 1.7 percent — a level below the government’s and the Reserve Bank’s forecasts of about 2.25 percent. In their minutes they noted that the Reserve Bank’s most recent forecasts suggested that unemployment and inflation rates over the following couple of years were “likely to be short of the Bank’s goals”. The RBA minutes justified their decision to cut rates in October. They suggested that holding back rate cuts in anticipation of a negative shock was not the best policy. Instead, they felt it is better to cut rates, strengthen the economy immediately so that the economy would be better placed to absorb a negative shock. The Board minutes leave little doubt that another cut is expected. We’re in for some interesting times ahead. 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   More details and show notes here: 5 Lessons property investors can learn from farmers | What if rate cuts don’t work but only push up property values? With Dr. Andrew Wilson Some of our favourite quotes from the show:  “To find success in growing your own crop of high growth assets, you must change your focus from consumption to production.” – Michael Yardney “Your thoughts lead to your feelings, your feelings lead to your actions, your actions lead to your results.” – Michael Yardney “Just because spring arrives doesn’t mean things are going to look good in autumn.” – 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

Around this time every year, a little animal creeps out.  They’re called naysayers. And they find all the bad things that are going on in the world, rather than seeing the good things. Rather than being grateful.  Interestingly, in the 40-something years, I’ve been investing, the naysayers always come out.  And interestingly, they’ve always been wrong.  So in today’s episode, I’m going to explain to you why these are the good times – why these are the times you should be enjoying and appreciating.  Then we’ll have a chat with my business partner Brett Warren about why he left $50,000 on the table by not doing a property deal. Some great information there.  And there will also be a lesson in my mindset moment that I think is going to help excite and stimulate and influence you to go for some great things.  Why These Are the Good Times The steady stream of “bad news” we receive via our 24/7 news cycle is enough to get anyone down. It’s easy to buy into the doom and gloom hype in the media these days. So, it’s no wonder many of us are pining for the “good old days”. But what if I told you that you’ve won the lottery and right now, we are living in the best country in the world and at the best time in human history? Thanks to the internet, we have a whole world of possibilities our parents and grandparents would never have dreamed possible. We can video chat with friends and family on the other side of the world, work from home and even gain qualifications through prestigious overseas universities, all without leaving the couch. We have limitless news and entertainment right at our fingertips. International travel has never been cheaper platforms such as Airbnb enable us not only to travel on a budget but also to make some cash on the side when our home is empty. Most of us can afford to eat at restaurants and buy takeaway on a regular basis, even if we don’t have a huge income. And if we can’t be bothered going out, we can have the finest cuisine brought to our home using apps like UberEats. So what is wrong with this picture? Human nature is such that with all these advances and improvements, we can’t help but want more, more, more. But none of it is real. Real happiness and real financial security can’t be found at the bottom of an award-winning bottle of wine in a fancy restaurant. It’s gained through hard work, discipline and maintaining your priorities – spend a little here, save a little there, until you reach a point where you’re no longer dependent on your weekly wage to make ends meet. Until that time, you’re never truly free, because you’re always at the mercy of your creditors, your employer, or the economy. Becoming financially free isn’t about having the best of everything – you have to make sacrifices in some areas so that you’re able to splurge on the things that really matter to you. It’s called delayed gratification. Then follow these three simple steps to financial freedom: Spend less than you earn (otherwise you’ll always owe money.) Save and invest wisely in income-producing growth assets like residential real estate. Reinvest your money and use compounding and leverage to grow your asset base until you have a cash machine. Now don’t underestimate the importance of this simple message. Every little step you take towards that dream is progress, even if it doesn’t seem that way at the time. Why I said no to a $50,000 profit with Brett Warren  Never make long term decisions, based on short term information. It’s easy to focus on the short term: In this case a possible $50,000 profit as a one off hit flipping a property.  But it’s an error to assume that everything will go according to plan. In this case, to achieve the best-case scenario, you would need to hope that:  The purchase would go to plan at the right price There would be no significant issues with the renovation It would be easy to find a tenant paying the desired rent  The valuation would stack up at the end  You need a backup plan in case one or two (or more) of these factors don’t work out as you hoped.  This is the risk of the transaction alone, let alone the idea of holding on to the asset and renting it out for the long term. The better plan is to focus on the longer-term and reduce risk. Focus on areas with a higher percentage of Owner Occupiers  Homeowners are in it for the longer term and will not give up their homes so easily, this leads to less market volatility. At Metropole, we look for suburbs where the locals have a high disposable income. We look for locations where the wage growth is higher. We also look for locations where jobs are plentiful. The people living here will generally be able to ride out the difficult times. We also look for aspirational suburbs and gentrifying suburbs. As a result, these locations perform significantly better with less risk. Links and Resources:  Michael Yardney Metropole Property Strategists Brett Warren – Metropole Properties Brisbane Organise a time to speak with Brett by clicking here   Show notes plus more at the show page: Believe it or not, these are the good times | Why I said no to a $50,000 property profit with Brett Warren Some of our favourite quotes from the show:  “We want everything and we want it yesterday, and this mentality leaves us open to the relentless pursuit of keeping up with the Joneses.” – Michael Yardney  “One day you’re going to wake up and realise you’ve made it. And it will be totally worth it.” – Michael Yardney “You only need one thing to succeed: forget all the reasons why it won’t work, and believe in the one reason why it will.” – 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