Property Investment, Success & Money | The Michael Yardney Podcast

What will the property markets be doing for the rest of 2019? And what can we expect to happen after 2019? In today’s episode, I’ll be asking those questions of property researcher John Lindeman who joins us to talk about why he disagrees with many of the so-called experts predicting long-lasting house price falls and what he bases his analysis on. During today’s mindset moment, we’ll talk about winners and losers and what one of the big differences is between them. It’s probably not what you think. Finally, I’ll have a chat with Adam Nobel, a top selling agent in Brisbane, about how to choose a selling agent to sell your property. Understanding how selling agents work can help you whether or not you’re in the market to sell right now. Some of the questions I asked John Lindeman Many so-called experts are predicting  long-lasting house price falls - as much as up to a further 25 to 30% in the next few years, but reading your commentary I see you don’t agree. Why is that? John's answer: After looking at all the indicators that have caused booms and busts to occur, what we’re looking at right now is not similar to the indicators that have caused large crashes in the past. Most experts make their housing predictions based on past performance because they believe the market will continue to perform in the future test in the past, but you have a different view. What are your forecasts based on? John's answer: Past performance can tell us a lot, but you also need to know what the main indicators are. You can use those to predict what’s going to happen. In a recent blog you made property forecasting easy – you boil it down to a simple equation. Could you please go through that with us? John's answer: Demand is up (300,000 new residence from overseas and other states arrive in Brisbane Sydney and Melbourne each year) + Supply is down (housing investor finance fell and new dwelling approvals plunged) = Rental Crisis What happened in previous cycles we got to the stage where Capital growth slowed down or stopped? What do you see happening to our property markets moving forwards? Highlights from the conversation with Adam Nobel Why choosing the right selling agent is important The highest profile agent isn’t always the right choice for your property What kind of research to do when looking for selling agents Why selling agents need to be local experts How to mystery shop agents Links and Resources: Michael Yardney John Lindeman – Lindeman Reports Adam Nobel – Hugo Alexander Property Group Organise a Strategic Property Plan with the team at Metropole Some of our favourite quotes from the show: ”I’ve found that in general, people fall into one of two groups: those who make excuses and those who don’t.” –Michael Yardney “When you wake up in the morning, you get to choose which route you take.” –Michael Yardney “You’d be surprised how much more the right agent can get for your home – or put the other way, how much the wrong selling agent could cost 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.

Are you interested in getting into property development? If so, the insights in today’s episode can help you on your journey. And even if you’re not planning on getting into property development yourself, you can still learn a lot about property selection and how the mind of a successful property developer works by listening to the interview in today’s episode. In this special bonus episode, you’ll hear Dan Gold of Long Property interview my son, Bryce Yardney. Bryce has been overseeing and the property development arm at Metropole for many years. This interview will provide some interesting and useful insights into how successful property development works. Highlights from Dan Gold’s Interview with Bryce Yardney How Bryce got into property development How the property development division of Metropole works What Bryce would recommend for an entry-level property development Why the overarching strategy is buy, develop, and hold, rather than buy, develop, and sell quickly Why Bryce focuses on capital growth How Bryce finds a good property for development Why you need a development-friendly council Types of financial metrics people should be focused on when they do due diligence on a potential investment site How to size up a good deal versus an average deal Holding costs through the development period Tips for people who are considering a substantial renovation or development project What happens after a successful development project Links and Resources: Michael Yardney Metropole Property Strategists Bryce Yardney   Metropole Dan Gold – Long Property Metropole’s Property Development Services Organise a Strategic Property Plan with the team at Metropole Some of our favourite quotes from the show: ”I got involved in property development in the 1980s, and I made lots and lots of mistakes, but a rising market carried me through. If you make those mistakes in today’s current flatter market, you’re going to get yourself into real financial trouble.” – Michael Yardney “Getting through is the hard bit – you’ve got to have the financial buffers, but once you get to the end, it’s surprisingly easy to hold onto the completed development. And then, you profit from the strong cash flow and capital growth over the long term.” –Bryce Yardney “The more inexperienced you are, the more unsure you are, the bigger contingency you have to allow the bigger the risk margin you have to allow, because you’ve got to assume you’re wrong.” – Bryce 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.

Many commentators are worried that the current crisis in consumer confidence will impact economic growth. They suggest that the negative wealth effect of falling house values could lead to a cut in consumer spending and that this plus the collapse in construction activity (one of our biggest employers) at a time of overseas economic headwinds could combine to create the perfect storm which could lead to Australia into recession. In his first public speech for 2019 Reserve Bank Governor Philip Lowe highlighted the issues that are likely to shape the future. Lowe also believes the current slump in our property markets is "manageable" but conceded that now it's just as likely that the next move in interest rates is down as it is likely that we'll have a rise in rates. For what it's worth I think interest rates will be cut twice this year bringing the rate down to one percent. 6 Reasons we’re not going into recession Here are 6 reasons given by Governor Lowe as to why we’re not going to have a recession: Despite the various political issues and the trade wars creating some downside risks, the world economy and the economies of our trading partners are performing well. Australia’s economic growth is forecast by the RBA to be around 3% over 2019 and 2.75% over 2020. This should be enough to see further gradual progress in lowering unemployment. 3. We’re creating more jobs. Last year: 212,000 full-time jobs created last year 51,000 part-time jobs created last year Unemployment is falling - at 5% it is now the lowest it has been since 2011 In NSW and Victoria (our two economic powerhouses) unemployment is around 4.25% With the number of job vacancies at a record high, unemployment is forecast to drop further to 4.75% over the next few years. There are finally signs of wages growth ahead A gradual pickup in underlying inflation is forecast as spare capacity in the economy diminishes. Underlying inflation is now expected to increase to about 2 percent later this year and to reach 2¼ percent by the end of 2020. Now I’m not an economist but I see plenty of other positive signs amongst all the pessimism in the media. These include: The next Federal Budget is likely to deliver a surplus for the first time in years. Our population is growing strongly – albeit a little slower than before Australia's population grew by 390,500 people or 1.6% during the year ended 30 June 2018. Natural increase and Net Overseas Migration contributed 39.4% and 60.6% respectively to total population growth for the year ended 30 June 2018 Infrastructure boost - We have a very strong infrastructure investment pipeline mainly coming from State Governments. The next Federal Budget is likely to deliver a surplus for the first time in years. Australia's population grew by 390,500 people or 1.6% during the year ended 30 June 2018. Natural increase and Net Overseas Migration contributed 39.4% and 60.6% respectively to total population growth for the year ended 30 June 2018. The Australia dollar is likely to stay low for some time yet and this is good for our export industries. Our Mining Sector is on the improve assisted by our falling Australian Dollar and increasing mineral prices. This means the big economic drag we have seen from the downturn of the mining sector over the last five years or so from falling mining investment is starting to fade. The Agricultural Sector on the improve – and if we play our cards right we could become the Asian food bowl. Tourism is booming International student education is continuing to be a huge “export industry” for us - up 17% last year. Our Housing markets And while clearly not all the news is good for our housing markets there are clearly some positives that the media tends to overlook. Interest rates are low and are likely to fall further this year as the RBA tries to stimulate our markets. The good news is the RBA has plenty of ammunition up its sleeve but there is always the question of whether banks will pass on interest rate cuts to their customers, and whether they will loosen their tight lending criteria. Residential vacancy rates are tightening Rents are likely to rise The underlying demand for property is still strong but hindered by consumer sentiment and tight credit. There is clearly an oversupply of new apartments in many locations, but the pipeline is slowing down. The big unknown Clearly, we have a mixed bag of economic fundamentals that will interplay on our economy and our housing markets. While these are relatively easy to quantify, the big unknown will be consumer sentiment and currently, that is low and unlikely to change until the outcome of the federal election is known. Having said that, those investors who take a long-term view and recognise that all economic downturns are temporary, while the increase in the value of well-located residential properties in our capital cities is permanent, will be able to take advantage of the property investment opportunities the current buyer’s market is delivering us. Links and Resources: Michael Yardney Metropole Property Strategists National Property and Economic Market Update 1 day Trainings   use the coupon code: PODCAST Some of our favourite quotes from the show:  ”The housing markets don’t work in isolation, similarly, the Australian economy doesn’t work in isolation.” – Michael Yardney “If you’re in the financial position and it fits in with your long-term strategy, it definitely is worth considering getting into the market now, because underlying demand is going to pick up between now and when the election occurs.” –Michael Yardney “You need an area that’s going to have current and future levels of multiple growth drivers, and population growth and economic growth.” –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. I’m joined today by Ahmad Imam, and 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 recognize 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 memorize 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 memorize 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 realize 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 Ahmad Imam – Director Metropole Sydney 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 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.

Just over 30 years ago I began my study of rich and successful people. Of course, not all rich people are successful, and not all successful people are rich; but remember I was much younger and more naïve then and wanted it all. I tried to understand why some people were rich while others kept struggling financially. Over the years I attended many seminars, paid mentors and read as many books as I could on the topic of success. I modelled successful people and eventually grew successful myself. It wasn’t easy, I’ve had my challenges in life (mostly self-inflicted) and I’ve hit rock-bottom, but I got up again, learned from my mistakes and moved forward. And for well over a decade I’ve mentored over 2,500 successful (and some not so successful) investors, business people and entrepreneurs. In fact, a by-product of this is our top selling book – Rich Habits Poor Habits In it, Tom Corley and I explain how being rich has little to do with the money itself Instead, it has a lot to do with how you think about money. So, if you want to become rich, one of the first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action, and to let the action become natural by thinking the way wealthy people think. We’ve found rich people share similar habits. While we explain this in some detail in our book, in today’s podcast we begin a series where we discuss…   21 Success Habits of The Rich …. The average person thinks about spending their money, while the rich think about how to invest their money. The average person worries about running out of money while the rich think about how to use their money to make more money. Most people believe hard work makes you rich, while the rich know that leverage creates wealth. Successful people don’t procrastinate. They don’t spend their life waiting for the ‘right time’ or waiting until they know it all or have figured everything out. The average person believes having a job gives them security. The Rich know there’s no such thing as “job security.” Most people want to be rich. The Rich are committed to being Rich. (They are very different things.) When things go wrong, the Rich find a lesson, while others only see a problem. The average Australian sets their financial expectation low, so they’re never disappointed. On the other hand, the Rich set their financial expectations high so they’re always excited. Successful people take calculated risks – financial, emotional, professional, psychological. But once they’ve built their wealth, they take fewer risks. The Rich consciously and methodically create their own success, while others hope success will find them. The Rich look for and find opportunities where others see obstacles. The average Australian believe life happens to them. They are a passenger, while the Rich believe that they create their own destiny. They are the pilot of their lives. Successful people align themselves with like-minded people. They understand the importance of being part of a team. They create win-win relationships. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney’s Mentorship Program Some of our favourite quotes from the show: “We all can, in the countries that most of the people who are listening to this podcast, become financially independent, become wealthy, if you know how the wealthy think, if you learn about their habits, and if you start doing what they do and thinking what they think.” –Michael Yardney “If your money’s not working while you’re asleep, you’ll never get rich.” –Michael Yardney. “It’s those who get up again, who find a lesson in their mistakes, who find a way of overcoming them who do well, while the average person sees it as a problem and they don’t get up again.” –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.

Mentors are an important part of your success. They help you get further in life, whether that’s in property investment, entrepreneurship, or just in how you handle your money. Today it’s easier now to find a mentor than it ever has been before, but the ready availability of information has its downsides. There’s such a thing as too much information from too many sources, some of them untrustworthy. So when choosing a mentor, it’s important to do your research and find out if the person you’ve chosen is trustworthy. In today’s show I’m going to share with you some lessons that I’ve learned from one of my mentors, Warren Buffett. I’ll also have a conversation with Ahmad Imam about FOBO – what it is and how to cure it. And in today’s mindset moment, you’ll learn about some of the differences between successful people and unsuccessful people. What I learned from Warren Buffett “Be greedy when others are fearful, and fearful when others are greedy.” This is a well-known quote by Warren Buffett. Initially, I took the words literally and thought I had to buy counter-cyclically. But in context, what Buffett actually suggests is that to profit in the market you don’t really have to predict downturns. I learned several lessons from my new understanding of this quote. Fear and greed drive our markets and cause them to cycle. Too often, it can cause them to cycle too far in either direction. Trying to predict these market cycles are is a fool’s game. We know much less than we think we do, even when we have plenty of data. As an investor, you simply need to know that these cycles keep recurring. When you know that the cycles will recur, you’ll be prepared and not surprised when it happens. Don’t overreact to a new phase in the property cycle or allow your emotions to affect your investment decisions. How to diagnose and treat FOBO You’ve heard of FOMO: Fear of Missing Out. But there’s a new acronym people are using: FOBO. It stands for Fear of Better Options. People with FOBO are those who are constantly procrastinating because they know there are many options out there and they aren’t sure which is better for them. This leaves them unable to commit How do you know if you’re suffering from FOBO? Symptoms include: A severe case of analysis paralysis Feeling overwhelmed by all of the information and choices High anxiety created by the fear of buyer’s remorse Cold feet when you’re on the verge of making an important decision People with FOBO suffer from a lack of perspective. They have difficulty identifying which sources or information to take seriously. Analytical people often procrastinate the most. They get so caught up in analyzing the options that they fail to take action. It’s important to recognize that you won’t know it all, but that over time you will know enough to start taking action and you’ll find out more along the way. How to cure FOBO: Do your research. If you don’t know how to do due diligence, engage people that do know how. Set a deadline for research and stick to it. When the time is up, you’ll need to make a decision. Be decisive. If you can’t, engage an expert in the field who can do it for you. Links and Resources: Michael YardneyMetropole Property StrategistsNational Property and Economic Market Update 1 day Trainings  Coupon Code: PODCAST Ahmad Imam -  Metropole Properties Sydney Some of our favourite quotes from the show: “One of the mistakes I made early on is I didn’t actually reach up high enough on the food chain of mentors, because if I did, I would have been further along with my success earlier.” –Michael Yardney “Another trait of successful people is that they talk and share and encourage ideas with other people. –Michael Yardney “Our system of growing wealth through property is too simple for many intelligent people. They think there’s got to be more to it than that, and there isn’t.” 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.

To be successful in the current more challenging property markets, you not only need to know what to do, but just as importantly you need to know what not to do. As I see it there will be plenty of challenges and risks in the real estate markets this year and the value of certain properties will be a little lower by the end of the year. But we’re experiencing a necessary market adjustment and without it we’d be in for the kind of crash we really didn’t want. So in today’s show, we’re going to talk about what not to do in property in 2019. I also have a bit of a controversial mindset moment to share with you. And I’ll chat with Ahmed Imam about the questions you should ask an agent before you make an offer so you understand how to take advantage of this buyer’s market. Here’s What Not to Do In Property in 2019 Don’t wait too long to get started Don’t let fear stop you Don’t wait until you know everything. You’ll learn more as you move forward, and you’ll learn from your mistakes and challenges. Don’t focus on linear income, focus on recurring passive income Don’t be impatient – wealth is the transfer of money from the impatient to the patient Making an offer on a property – what price should you offer? Here are 5 questions to ask the agent before you make your offer:   How did the vendor come to the asking price for their home? Was it from the agent’s suggestion or because that’s how much they need to buy their next dream home? Some sellers are unrealistic and unlikely to come down from their asking price if they have to get a certain amount for a particular reason. Have there been any other offers made? This lets you know if you have any competition and how serious the vendor is about selling their home for a reasonable price. How long has the home been on the market? If it’s just been put up for sale, the seller may not be anxious to accept the first offer. If the home has been on the market for several months, it’s more likely the seller would be ready to accept your offer. Why is the vendor selling? Are they going through a divorce? Do they have to move interstate urgently? Have they already bought another home that would put them under pressure to sell their current home? This will let you know how motivated the seller is. Has the asking price been reduced during the time the property has been on the market? This will tell you whether the seller is really keen to offload their home and also let you know that you might have a motivated seller on your hands and perhaps greater bargaining power. Links and Resources: Michael Yardney Metropole Property Strategists Ahmad Imam – Director Metropole Sydney National Property and Economic Market Update 1 day Trainings   use the coupon code: PODCAST Some of our favourite quotes from the show: ”I think it’s worth remembering that owner occupiers create property markets. If you think about it, 70% of properties are owned by homeowners. On the other hand, investors create the booms.” –Michael Yardney “The truth may hurt, but the world doesn’t owe you anything.” – Michael Yardney “Confidence and trust are earned by you, not owed to 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.

I was asked to put together a list of simple rules that distilled my property investment philosophy, so in today’s episode, I’ll give you 9 simple property investment rules to go by. In my mindset moment, I’ll share 2 inspirational quotes that have helped me and that might be helpful for you as well. Then we’ll discuss some of the differences that separate rich people and poor people. Hopefully, by the end of the episode, you’ll be a little wiser when it comes to money, property, and success. 9 Property Investment Rules Become financially fluent – You need to understand how money, finance, the property market, and the economy work. Adopt a proven investment strategy – Real estate is a high-growth, low-yield investment, so it’s best to invest for capital growth. Not every property is investment property – you want properties that are going to out-perform the averages in capital growth. Demographics drive markets – Demographics are more important than short-term ups and downs when it comes to shaping our markets. Real estate investing is a game of finance with some properties thrown in the middle – property is a long-term game, so you’ll need financial buffers along the way. The economy and our property markets move in cycles – each boom sets up the next downturn, and each downturn sets the stage for the next boom Follow my 6 Stranded Strategic Approach and only buy a property – properties should: Appeal to owner occupiers Be priced below intrinsic value Have a high land to asset ratio Be located in an area that continually outperforms the averages Have a twist that adds value Come with the potential to manufacture capital growth Don’t focus on bargains -- Properties that no one else wants today will probably be the type of property that no one else will want in 5 years’ time. Allow for an X-factor – unforeseen events can be positive or negative, but they’re sure to happen. 10 major differences between rich and poor people If you’ve been listening to my podcast you’d realise that I believe wealth is a choice that we must all make.  Wealth is a mindset Bill Gates once said, "It's not your fault if you were born poor, but it's your fault if you die poor." In Australia, there's no reason why you should live in poverty. Wealth is waiting for you, but you have to make up your mind if you want it in your life. For years I studied the rich then I became one of them, and for the last decade I’ve mentored over 2,000 people to become rich Here are 10 of the major differences I’ve realised that separate rich and poor people: 1a. Poor people are skeptical. I distinctly remember a nephew of mine saying, "Those plumbers are a rip-off! They'll charge for things they haven’t done. He thought that everyone unjustly wanted his money and that everyone is out there to get him. Do you know someone like that? 1b. Rich people are trusting. Rich people have the tendency to trust those they meet (within reason) and give others the opportunity to be themselves. 2a. Poor people find fault. People who are poor are always looking for the problems instead of the solutions. They end up blaming their environment, circumstances, jobs, weather, government and will make an extensive list of excuses as to why they cannot be successful. 2b. Rich people find success. Rich people understand that everything happens for a reason. Rather than letting life happen to them, they take direct action and make big things happen. They put aside all the excuses and eradicate their blame lists because they have to do what must be done. 3a. Poor people make assumptions. When it comes to knowing the truth, poor people often make assumptions. If they want to reach out to a someone, they might say, "They probably don't have time to talk to me." Instead of checking the facts or asking questions, they never make a true attempt when it comes to getting what they want. 3b. Rich people ask questions. Many rich people ask the question, "What if?" For instance, "What if I wrote an email to that person and he or she answers?" If you begin to ask questions, you will save yourself a lot of hassle. The power is in the hands of those who ask the right questions. Then don't answer your questions, question your answers. 4a. Poor people say, 'they' and 'them.' Have you noticed how the people at the checkout at the supermarket say, "They never have enough cashiers. I don't know what's wrong with them." Obviously, these people don’t take any ownership and responsibility for their job. They certainly separate themselves from the job that was paying her. 4b. Rich people say, 'we.' At one of my favourite restaurants, the server said, "We take great delight in cooking our steaks in real fire." Her sense of pride and ownership stimulated me, which allowed me to give her an honourable tip. Surely, you will be rich when you invest more into what you believe in. 5a. Poor people want the cheapest way. Have you noticed how poor people tend to look for the cheapest items, bargains, free advice. Unfortunately, cheap is always cheap. 5b. Rich people want the best way. Rich people will go the extra mile to find quality – they recognise that price is what you pay and value is what you get. They don't limit themselves to price and often seek service while they shop. They’re prepared to pay for mentors, coaches, and advisors 6a. Poor people think money is more important than time. Millions of people all over the world are trading their precious time for money. You can always get $500 back, but you can't get 50 hours again. Nonetheless, the majority of people trade time for money and never realize their true potential because of it. 6b. Rich people know that time is more important than money. Rich people never trade time for money. Moreover, they seek fulfilling experiences that dramatically alter their lives. Their careers are more focused on doing what they love and helping others, instead of merely clocking in for a meager paycheck. 7a. Poor people compete. When a poor person sees an opportunity, they find out how others are doing it and copy them. Most often, they never consider another way of doing it. Instead, they settle in the belief that doing what others are doing is the best thing they can do for themselves. 7b. Rich people create. On the other hand, the rich like to think outside the box and find new opportunities 8a. Poor people complain, condemn, and criticize. Most poor people have learned how to be poor from their parents. Their family members have conditioned them to believe that everything is "wrong" instead of right. If you've ever heard someone ask, "What's wrong?" you'll know what I mean. 8b. Rich people praise and enjoy their blessings. Rich people know that they have many privileges and they don't take it for granted. Because of their appreciation of gifts, love, and circumstances, they are able to generate more. 9a. Poor people seek amateur advice. They often listen to the opinions of others and seek approval from acquaintances. They believe almost everything they hear without questioning authority. They accept opinions as facts and prohibit themselves from doing research once satisfied with an answer. 9b. Rich people seek expert advice. Those who are rich have learned to think for themselves. If they cannot figure out something, they seek expert advice. Usually, they pay for the advice and are given a wide variety of options. They learn the experts only make suggestions, which means that they aren't particularly confined to a specific action. 10a. Poor people have big television sets. Poor people use their free time to avoid the art of thinking (which is the most challenging task) and zone out to what many have conformed to believe is "entertainment." 10b. Rich people have big libraries. Wealthy people are educated and read a lot of books. They use their knowledge in a way that benefits them. Instead of drifting off in random activities, they seek to get within their minds to understand themselves, others, and the world in which they live. Bottom line: To get a true perspective on how to become rich, you must study rich people. After all, you become what you study. If you're currently surrounded by people who aren't yet rich, just do the opposite of what they do. Soon enough, you'll be able to reach your financial dreams! Links and Resources: Michael YardneyMetropole Property StrategistsRich Habits Poor HabitsMichael Yardney’s Mentorship ProgramNational Property and Economic Market Update 1 day Trainings Some of our favourite quotes from the show: “It’s really critical to understand if you’re being impartial advice, or if you’re being taken advantage of by the many vested interests out there after your money.” –Michael Yardney “Trying to make something perfect actually prevents us from making it just good.” –Michael Yardney “What if what you know is only one of the many possibilities, and there are some better ones, other ones, different ones? What if what you know could be further enhanced by what other people know? What if what you already know is actually wrong?” –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 do I invest? What approaches do I use and which strategies do I use? There is no “secret” to successful property investing, but there is a strategy I use to boost my chances of success. It is to firstly build my asset base through capital growth and then, once I’d built a substantial asset base, to move to the “cash flow” stage of investing. When my properties increase in value this gives me equity for my next deposit and the greater rental growth helped pay the mortgage. The next stage is to slowly lower the loan-to-value ratio (LVR) of my property portfolio and then to start living off my “cash machine” of properties. You see…while cash flow management is important to keep you in the investment game, it’s really only capital growth that’ll get you out of the rat race. A big mistake I see many investors make is chasing cash flow positive properties early in their journey and never achieving a sufficiently large asset base. My Top Down Approach Over the years I’ve honed my property investment strategy to find that 5% of properties that I like to call “investment grade” properties, – ones that are likely to grow at wealth producing rates of return. I use what I call a “top-down approach” to my investment selection.   The Right Stage of the Economic Cycle   It starts with buying at the right stage of the economic and property cycle. I look at the big picture – how’s the economy performing and where are we in the property cycle?   The Right State   Then I look for the right state in which to invest – one that’s in the right stage of its own property cycle. While I’m not trying to time the cycle, I don’t want to buy right at the peak when I’ll have to wait longer for capital growth. I only invest in our larger capital cities, where there are multiple pillars to the economy – because this is where economic growth and wages growth will occur.   The Right Suburb   Then within that state, I look for the right suburb – one with a long history of strong capital growth outperforming the averages. I’ve found some suburbs have 50 to 100 per cent more capital growth than others over a 10-year period. It’s all about demographics, as these suburbs tend to be areas where more owner-occupiers want to live because of lifestyle choices and where the locals will be prepared to, and can afford to, pay a premium to live because they have higher disposable incomes. In general, they’re the more affluent inner- and middle-ring suburbs of our big capital cities, so I check the census statistics to find suburbs where wages growth is above average. Clearly my approach is very different to the speculative approach some investors adopt looking for the next “hot spot”.   The Right Location   Once my research has shown me the suburb to explore, I look for the right location within it. Some livable streets will always outperform others and in those streets, some properties will always be more desirable than others and outperform as investments by increasing in value. Think about the suburb where you live – there would be areas you’d happily live in and areas you would avoid, like on main roads or too close to shops, schools or commercial areas.   The Right Property   I search for the right property using my ‘6-Stranded Strategic Approach’ and finally I look for…   The Right Price   I’m not looking for a ‘cheap’ property (there will always be cheap properties around in secondary locations).  house price tag market property cost save home growth data statistics trend I’m looking for the right property at a good price. I choose my properties in that order – a top-down approach – which leads many people to ask why price is at the bottom of the list. You make your money when you buy because you buy the right property – one that will be in continuous strong demand by both owner-occupiers (who push up property values) and tenants (who help you pay off your mortgage). To ensure I buy an investment property that outperforms the market I use my… 6-Stranded Strategic Approach I buy a property that Would appeal to owner occupiers – This is because owner occupiers will buy similar properties pushing up local real estate values. Is below its intrinsic value – that’s why I avoid new and off the plan properties, which come at a premium price. Has 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. 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 – This will be an area where more owner occupiers will want to live because of lifestyle choices and one where the locals will be prepared to, and can afford to, pay a premium price to live because they have higher disposable incomes. Is a property with a twist  – something unique, or special, different or scarce about the property, and finally…   Is where I can manufacture capital growth through refurbishment, renovations or redevelopment rather than waiting for the market to deliver me capital growth.   Each strand represents a way of making money from property and combining all five is a powerful way of putting the odds in my favour. If one strand lets me down, I have three or four others supporting my property’s performance. IT DOESN’T END THERE… While most investors just buy a property and hold it for the long term, strategic investors regularly review their investment portfolios. It makes no sense to invest in a property and then not review its performance every year or so. I like to look at my property portfolio’s performance at least once a year. Are my properties performing to my expectations? Are they outperforming the market? If that property were for sale today would I buy it again? Does this property still fit in with my overall plan? This is also the time to assess how our shifting markets will affect your property portfolio. What would happen to your position if interest rates were to rise 1% or 2%? Because in due course they will. It’s also the time to assess your Loan to Value ratio and your cash flow to see if you can afford to buy another property or two. Over time you grow, your skills improve and your circumstances change, so treat your property investments like a business and evaluate your assets dispassionately. So as I said earlier – there is no secret to property investment success, just a strategy. While most investors read a book or two, do a little research and then buy one of the first properties they come across, strategic investors are smarter than that. They follow a system that is rooted in the real world and has stood the test of time in changing markets. So now you know the “secret”, what will you do with it? Links and Resources: As mentioned in the show: Special 2 for the price of 1 Book Bonus: How to Grow a Multi Million Dollar Property Portfolio - in your spare time PLUS  What Every Property Investor Needs To Know About Finance, Tax And The Law.  Michael Yardney Metropole Property Strategists Some of our favourite quotes from the show: “I look for aspirational suburbs. Suburbs where people aspire to live there.” –Michael Yardney “I’ve found that following my six-stranded strategic approach, you minimize your risk, and you maximize your upside.” –Michael Yardney “Financial freedom comes at a cost. It comes at a cost of sacrifice, giving up things now for the future, and it comes at the cost of delayed gratification.” –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Most of us want to become rich. But do we really know what that means? In today’s show, I’m going to debunk some of the biggest myths about rich people. The myths that have developed around wealth and rich people are not only interesting but within these myths and the realities behind them, we may find clues as to how we can become wealthy ourselves.  It’s important to challenge these misconceptions because how you think about money and rich people can determine how successful and wealthy you become. Some of the myths about money and the rich we discuss: Rich people inherited their money – Studies show that a large percentage of the wealthy came from poverty or the middle class and made their own money. Rich people don’t have to work hard – Rich people don’t relax more than poor people. Tom Corley’s study showed that rich people worked 11 hours more per week than poor people. Rich people pay less tax than anybody else – While super wealthy people can invest their money in tax-advantaged investments, but they only represent about one half of one percent of the wealthy. For the most part, the wealthy pay a large amount of tax on their earnings as they earn it. The rich are rich because they got lucky – Wealthy people experience opportunity luck. In other words, they create their own luck. The rich are better educated – In Tom Corley’s study, more than 30% of the wealthy did not have a college degree. They relied on self-education. Rich people are not charitable, and they look down on the poor – Wealthy people devote a large amount of free time and money to non-profits or charities in their community. They see it as an obligation to lift others up. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney’s Mentorship Program Some of our favourite quotes from the show: “If you believe negative things about money or about rich people, that they’re bad, you may be creating an undertow of self-sabotage that keeps you from being successful.” –Michael Yardney “If you’re not wealthy or successful in your own mind – you can be successful as a parent you can be successful as a person, but maybe not as much financially successful – it actually is hard to admire wealthy people because you think, “I should be there as well.”” –Michael Yardney “You can’t become successful in any area of life – including money if we’re talking about rich – without hard work, without failure along the way, without getting up one more time and looking adversity in the eye and beating it.” –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.