Property Investment, Success & Money | The Michael Yardney Podcast

Most of us have accepted the situation we're in. We're adapting to a new normal. The bulk of the world is in official or unofficial lockdown, we're taking the threat seriously, and we're seeing unprecedented government support. We're reminded of the importance of family and friends. We're locked in with them or keeping in touch with them virtually. What else has become clear is that we're all equal. This virus doesn't discriminate between background, education, religion, or political affiliation, or net worth. This crisis has revealed that there are no real global borders. We're all connected, and this virus doesn't need a visa. Today, I'll be talking with leading demographer Simon Kuestenmacher, Director of Research at The Demographics Group, and a columnist with The Australian who is globally recognised as a rising star in the field of data management and insight and a regular guest here on my podcast, about his research into coronavirus, who it's going to hit the hardest, and what to watch out for. Some of the topics we discuss: The virus seems to have made an early beeline for the more well-to-do suburbs of our capital cities. Why has this happened? Everyone can be attacked. The virus doesn't discriminate. But because this is a virus that came from overseas, people who travel overseas are likely to be impacted first – and that means more well-to-do Australians. Where is the largest concentration of our aged population? In lieu of medical data, because we don't have much of that, we can look at demographic data to see where the people who are most at risk live. Tasmania and South Australia are the two oldest states and have the bulk of the older population of Australia. Will the virus be contained in our capital cities, or will it spread to the less densely populated regional town centers? It will most certainly spread. Two-thirds of the Australian population lives in just 5 cities. The virus entered through our ports and airports spreads in the capital cities and will spread out from there. Currently, our main defense is social distancing. How will Australia's low-density suburban sprawl make us different from the more densely packed residents of the Chinese and Italian cities? Our low density in this particular aspect is a gift. It's easier to stay sane in a 3-bedroom house with a garden than a 1-bedroom apartment. For mental health, we're in a good situation. But we do have Wuhan-esque conditions at least in some parts of our country. Australia's workforce comprises 13,100,000 full-time and part-time employees. How will various workers in different industries be affected? Hospitality is a fragile sector because it relies on people being out and about. Lots of workers are young or temporary workers from overseas. This is connected to property, because those workers tend to also be renters. Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics GroupIn these challenging time why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Show notes plus more here: https://propertyupdate.com.au/podcast-coronavirus-whos-going-to-be-hit-the-hardest-with-simon-kuestenmacher/ Some of our favourite quotes from the show: "I think at some stage, the desire to move forward is going to overcome our fears." – Michael Yardney "A fuzzy future has little pulling power." – Michael Yardney "You've got to be a dreamer. You've got to have a great vision of your future." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

How would you like to know what the property values are going to be at the end of the year? Would you like me to forecast what property values are going to be in two to three years' time, or which areas will have the best growth? Of course! Everyone likes forecasts. We want certainty. That's especially true in today's market with things are so uncertain. But let me bust a myth about forecasts. The myth is that forecasts work. No they don't! Today, I'll have a chat with Pete Wargent about forecasts, why they don't work and what you can do to have a better idea about what's to come. At the end of the conversation, you'll have a better understanding of what you should be looking for instead of forecasts. And I'll also share a mindset moment about personal development. What's a better way of preparing for the future? The problem with forecasts is the same problem that makes chess such a difficult game, or that makes it so difficult to win the lottery. There are just too many variables. Those variables are impossible to predict and therefore make it impossible to forecast real estate markets accurately. A better option is to think in terms of probability. You want to be approximately right and avoid being completely wrong. It's important to question the models and forecasts. If they don't ask and answer the right questions, they won't provide accurate information. When evaluating a forecast take your gut instincts into account. You can't rely on this completely, but your instincts may be trying to relay important information. You should also consider the track record of the forecaster, and the model that they're using. Remember, asking the right questions is essential. Ways to prepare for uncertainty: Be somewhat flexible – avoid being narrow-minded. Understand and limit your downside. Seek unlimited upside – if you pick high-quality assets in the right areas, over the long run, the compound growth has seemingly limitless upside Mingle – Great things happen when you meet people face to face Links and Resources: Michael Yardney Pete Wargent Next Level Wealth Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Join us at Wealth Retreat 2020 in October –find out more here Pete Wargent's new book Low Rates High Returns Show notes plus more here: https://propertyupdate.com.au/podcast-here-s-why-property-forecasts-fail-but-why-we-still-need-them/ Some of our favourite quotes from the show: "Some forecasters just keep getting it wrong, but they keep kicking the can down the road." – Michael Yardney "I think the aim is to just do better than average because average isn't very good." – Michael Yardney Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We're in the midst of a health war. It's a unique war, with every country on the planet united to beat the same enemy. It's a silent enemy, an invisible enemy. A deadly enemy. This is a crisis that no one alive has faced before on this scale. But we're going to get through this. On today's show, I'm going to have a chat with Ken Raiss, director of Metropole Wealth Advisory, and together we'll answer four common questions that we're being asked about the crisis by clients. What's going to happen to the property market in the short term? What's going to happen to the property market in the long term? Are we going to go into a recession? What does that mean for you? What should you do about all this? What's ahead for the property market in the short term? Our property markets are most likely going to shut down for a while due to social distancing and lockdown. That shutdown could last for weeks. But the same thing happens to the market every year around Christmas time. This may be longer or shorter, but it's not unheard of. One big difference between this shutdown and an ordinary seasonal shutdown is that there may be less confidence when we start up again. However, not all segments of the market will be impacted equally. The upper and lower ends of the market are likely to suffer more. But middle-class areas are not going to suffer as much and will not go down much in value. Property markets will likely recover quickly because property is such an important part of our economy. Property and construction employ a lot of people. The government is committed to preventing us from getting into a deeper recession than we need to. They are supporting us in the lockdown and will help the industry move on in the next phase. The property market has both discretionary buyers and non-discretionary buyers. Discretionary buyers may choose to sit on the sidelines for a while, but non-discretionary buyers will still need to buy. Because of this, the property market tends to be resilient. What's ahead for the property market in the long term? We don't really know what's going to happen. But while this issue will have an impact and will have a short-term effect on our property market, in a year, five years, or ten years from now, this will probably have no lasting effect on the market. The property market has survived bird flu, swine flu, the global financial crisis, SARS, 9/11 and more. We have strong fundamentals – population growth is high. Immigration may drop for a while, but when this is over, people will still come to Australia. Interest rates are low and will remain at this rate for at least another three years. Household composition is changing, and we'll need more housing to accommodate the same number of people. There will also be more people renting. For a long time, close to 30% of people were renting. In the future, it may be up to 40%, and investors need to provide housing for those renters. First-time buyers started the year strong, and they'll be back because they're in it for the long term. In general, the property fundamentals and banking system are both sound. Will we go into recession? Yes. But you shouldn't panic. A recession only means that prices aren't going up as much as they were historically. This recession may be similar to the current rate of infection, where most people who are impacted are impacted mildly. 60% of home buyers live in their homes, which means there is less volatility in the property market than in the share market. During the Global Financial Crisis, house prices fell, but only marginally. And during this crisis, the government is spending a lot of money to prevent the recession from being as deep as it could be. Recovery will be faster for property than for other areas, especially for those who bought investment-grade properties. What do we do? Some people are going to run into financial difficulties during this time. If that's you, you should speak to your bank and your mortgage lender. Presently, you won't be penalized if you need to reduce payments or even pause your repayments. You won't even take a hit on your credit rating. The government has a moral obligation to help people out when they've been ordered to stay home and stop working through no fault of their own, and the banks are on your side in this matter. On the other hand, some people with sound jobs strong financial positions are in a position to do something during this period. If that's you, this is a good time to get a strategic wealth plan. You need to understand where you are now and make a plan to get to where you want to be. Links and Resources: Michael Yardney Ken Raiss, director Metropole Wealth Advisory In turbulent times like this why not get the team at Metropole on your side – find out more here Show notes plus more here: https://propertyupdate.com.au/podcast-the-4-big-questions-investors-are-asking-now-about-property-and-covid-19/? Some of our favourite quotes from the show: "Having been around for a long time, you've already heard me say that recessions really are part of the business cycle. Painful, but nothing unexpected." – Michael Yardney "If you've got a plan, then you've got more control of your life." – Michael Yardney "On the other hand, if you are in the position to do something, now is a good time to get set." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

It's a common belief that becoming rich requires more than a little bit of luck. But is this true? Or is it just that those who are not that rich find it easier to believe that those who've made it are luckier than they are talented? My reading suggests that luck, whether random or self-made is a common denominator of wealthy people. In today's episode, Tom Corley and I will talk more about this. But part of the conclusion really is that if you want to be rich, you do need a bit of luck. And while you don't have control over the circumstances of your birth, you do have some control over the circumstances you manufacture after that. As Tom Corley says, the rich are in the business of manufacturing luck. 4 Paths to Wealth There are actually four paths to wealth: The saver/investor path The big company/climber path The virtuoso/expert path The dreamer/entrepreneur path. You can be on more than one path. And you can choose which path or paths are right for you. Creating Your Own Good Luck Three of the paths to wealth involve creating your own luck. The rich create their own luck, and it's different from other types of luck. The rich put themselves in the right places at the right times 4 Types of Luck Random Good Luck Random Bad Luck Opportunity Good Luck Detrimental Bad Luck No one has control over random good luck and random bad luck. Opportunity good luck is the type of good luck that the wealthy create. They do certain things every day that create the opportunity for good luck to occur in their lives. We call these things Rich Habits. The Rich Habits are various habits that self-made millionaires either learned from a parent, mentor or through the school of hard knocks. Detrimental bad luck is a type of bad luck most of the non-rich create. They do certain things every day that manifest this bad luck. We call these things Poor Habits. These Poor Habits are picked up at home, from parents, from friends in the neighborhood or by following the wrong people. Because many of the Rich Habits are Keystone Habits, adopting just one can help you automatically eliminate two or more Poor Habits, which are overwhelmed by each Rich Habit you forge. As you adopt more Rich Habits, those good habits will eventually create the opportunity for good luck to occur in your life. Rich Habits are like little miracle workers. They not only help improve your life, but they also help change your luck. Links and Resources: Michael Yardney Metropole Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits Join Michael Yardney and Tom Corley at Wealth Retreat 2020 – click here and register your interest Show notes plus more here: The Rich are in the habit of manufacturing their own luck Some of our favourite quotes from the show: "Finding luck requires you to step outside your comfort zone." – Michael Yardney "Remember, courage is not the absence of fear, but it's the ongoing pursuit of something while you're still worried." – Michael Yardney "I've found that luck finds positive people, people who seek out opportunity." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

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

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