Property Investment, Success & Money | The Michael Yardney Podcast

All investing is associated with some level of risk. But if you’re taking on too much risk, you may be speculating, when you think you’re investing. In today’s episode, I’m going to talk about the difference between investing and speculating as well as a number of myths about risk that most investors don’t understand. Then I'll have a chat with Bessie Hassan, of Finder.com.au about the risk of getting scammed. You may be surprised to learn that Australians lose more than a million dollars a week in scams. We’ll talk about who gets scammed, what to watch out for, and how to protect yourself. What most investors don’t understand about risk What’s the difference between investing and speculating? Investing is purchasing an asset to earn a return. You make the decision based on evidence, based on fundamentals, based on long-term horizons so that timing isn’t an important part of it, and you aim to profit from it. Speculation is riskier. It’s based on the hope of a profit. It’s based on hearsay or the next hotspot or chasing the next big thing. It’s usually based on short-term time frames, so timing the market is important. And you’re hoping to make money out of a rising market, and therefore it’s less reliable than investing. So why do some investors think they’re investing when they’re really speculating? They’re looking for the next growth area or the next hotspot. They’re looking for something that will work now. On the other hand, strategic investors don’t look for investments that will work “now”, they look for investments or locations that have always worked  - they invest in properties and locations that have worked in the long term. That’s the big difference between investing and speculating. The myth of risk What most of us have been taught about risk is wrong, and it’s probably holding you back from achieving real wealth. If you are like most investors somewhere along the line you’ve probably heard that there is associated with different investment vehicles, Most believe that any investment can be placed somewhere along a continuum of risk with low risk investments at one end and highly speculative ventures at the other.  They believe that generally, the higher the risk the greater the reward. However, this theory misses an important component that helps determine whether or not a specific investment is risky. That component is you. The investor. Each investor has their own personal risk spectrum. How can you tell if an investment is risky? This question can’t be answered without knowing more about you. Have you ever invested in property? Have you completed a development? If you have zero knowledge about residential developments, or you’ve never owned an investment property, no matter how good the deal seems a development is a risky proposition. Some ways to determine risk: Know your area of expertise -- If you’re investing in something that’s your specialty, you start with a built-in advantage. Control – the more control you have, the lower your risk Transparency – the more you know, the lower the risk Liquidity -- Liquidity means the ease with which you can recover your money by selling the investment and converting it (or part of it) to cash. The greater the degree of liquidity, the lower your risk. Returns -- Investors gain returns from their investment property via cash flow, capital growth, forced appreciation and tax benefits. The more secure the returns, the less risky the investment will be Is your equity safe? -- Is your financial outlay secure if the investment fails? Are you personally liable? -- When you make an investment, do you have to provide a personal guarantee? This gives others (usually the banks) the right to pursue you if things go wrong. If your liability extends beyond the asset itself, your personal assets could be at risk. Market risk -- Some risks are inherent to certain markets. Consider what impact general economic changes to that marketplace could have on your investment. Risk spectrum -- This is the risk specific to the particular investment. Is it the right property, in the right suburb, at the right price and at the right time in the cycle? When considering an investment, don’t look at the investment alone – look at your own risk spectrum too. You can change your risk spectrum by developing expertise. Australians are losing about $1 million a week to investment scams According to Scamwatch by the ACCC men (63.5% of scam reports) are twice as likely as women (33.8% of scam reports) to be targeted by investment scams.  If the current trend continues, combined losses reported to Scamwatch and ACORN in 2018 could be in excess of $100 million.” The vast majority of investment scams are still centred on traditional investment markets like stocks, real estate or commodities. The clearest warning sign you’re dealing an investment scammer is how they contact you and the promises they make. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney’s Mentorship Program Michael Yardney's Property Renovations and Development Workshop Bessie Hassan – Money Expert ScamWatch Some of our favourite quotes from the show: “The fundamentals of sound residential real estate investing don’t change because short-term factors change.” – Michael Yardney “Regardless of how you may define success, your words, those you say to yourself and those you say out loud, are going to help manifest your visions, your goals, whatever you’re saying to yourself, into reality.” – Michael Yardney “Successful people are successful because when the odds are against them, they try even harder, rather than complaining and giving up.” – 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.

The first few weeks of 2019 have already brought many interesting predictions and forecasts for property. In today’s show, I’m going to share 5 property market predictions that will definitely happen in 2019. I’ll also have a chat with John Lindeman. We’re going to find out what his research suggests about how long this property downturn is going to last. The next boom might be closer than you think. 5 Property market predictions guaranteed to happen in 2019 Around this time each year, it’s customary for those of us in the property industry to peer into the future in an attempt to predict what’s ahead for our housing markets in the coming year and beyond. Making property predictions is not an exact science, but I can safely make five predictions that I am certain will be true for 2019.   Most predictions will be wrong!   My first prediction for the year is that it will be a bad year for those in the prediction business. I’m sure this will be correct as most of the economic and property experts get it wrong despite being armed with all the research available in today’s information.   Many things won’t happen, and others will.   Many of the predictions for 2019 won’t happen and a lot of things will happen this year that no forecaster thought to include in their predictions because market movements are far from an exact science.   Some forecasts will be right   I predict that a small number of the many economic and property forecasts for 2019 will accidentally come true and those who randomly predicted them will claim to be experts, despite the fact that it was the first time they got one of their hundreds of forecasts right and that they adjusted their forecasts over the year.   I believe that most property investors will get it wrong this year.   This one is simple –they always do! And I’m not talking about those who fail to take action this year, those who don’t even get into the market, even though that will be a big mistake this year.       Those who get it right will do very well.   And my last prediction is that those property investors who get it right will do very well out of real estate this year and set themselves up for the years ahead. Those who saw previous property downturns as a countercyclical opportunity have consistently done well for themselves. They recognise the slower market as a chance to invest when others are too afraid to buy and when there are more willing sellers in the market than purchasers. A few more property predictions for 2019. The big factors that will affect our property markets this year will be : The availability of finance, Consumer confidence and The result of the Federal election. If our property markets slump further this year the RBA has the ability to lower interest rates as it has often done in the past, or APRA can loosen the screws and allow investors and home buyers borrow more freely. I can’t see any indication of a rate rise in 2019 – if anything they should fall, but the RBA doesn’t like to fiddle with rates in the months leading up to an election. Of course, any fallout from the Haynes Royal Commission into Nanking will further affect the bank's willingness to lend and possibly their need to lift rates out of cycle. And I can’t see consumer confidence changing significantly until after the election due to the unknown future status of negative gearing and Capital Gains Tax. This means there will be further moderate price falls especially in Melbourne and Sydney and there are likely to be significant price falls for new and off the plan apartments. In the meantime, other markets including Brisbane, Canberra and Hobart will keep rising in value. So, our real estate markets will remain fragmented, but there won’t be a crash. Despite all the doom and gloom we hear in the media, things will not fall in a heap. Why am I so confident about this? Because history is a great teacher!   And history tells us that over time, the value of well-located properties always go up and investors who stay in the game for the long term always do well. Why the next property boom is not far away Despite the warnings from property pessimists who expect a continuing and significant downturn in our property markets, history suggests that this is unlikely. There have only been three such significant downturns in the property market between 1901 and today: During the Great Depression, when the property prices fell 26% over 6 years During the credit squeeze in the 1960s when property prices fell by about 18% between 1960 and 1967 In the fallout from the Global Financial Crisis, when property market prices fell by 8-10% between 2008 and 2012 In each previous case, price crashes were precipitated by a share market crash. That leads to a lack of housing finance, which causes house prices to fall. That's very different from market conditions we’re experiencing today. Currently, we have a growing economy, low unemployment, and low interest rates. The difference here is that the credit squeeze is self-induced. It’s not caused by the economy, a share market crash, wages falling or unemployment rising. Banks are responding to possible fallout from the Royal Commission on Banking by tightening up their lending approval processes. The main leading indicator that suggests when the next boom is coming is population growth. Au has one of the biggest population growth rates in the world, mainly from people arriving from overseas, but also interstate growth. Links and Resources: Michael Yardney Metropole Property Strategists National Property Market and Economic Market Update 1 Day Trainings Coupon Code: PODCAST John Lindeman- Lindeman Reports Some of our favourite quotes from the show: “Every year there is an X-factor – an unpredicted factor, either locally or from abroad, that impacts our markets – sometimes positively, sometimes negatively.” –Michael Yardney “As for luck, I’ve always thought that hard work creates good luck.” –Michael Yardney “The sooner you’re able to recognize and praise greatness, the better chance you’re going to have of replicating 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.

Every year is a little bit different in the property market, but 2019 is going to be a watershed year.If you’re curious about what’s going to be affecting the property market in the year ahead, you’re going to enjoy today’s conversation with Ahmad Imam. We’re going to talk about the major trends what will shape our real estate markets in 2019 and beyond. After you listen to today’s episode, you’ll be more informed and less worried, because you’ll know what to look out for, and you’ll find out more about the opportunities ahead. Some of the highlights from today’s discussion: There was a serious crisis of confidence in 2018, made worse by fear-mongering media coverage. The double-digit capital growth experienced in Sydney and Melbourne during the boom was not sustainable. The current correction is an important part of the property cycle. There is more than one property market, and not all of Australia’s property markets were in a downturn in 2018. Experienced investors see the normal downturn in the property cycle as a time of great opportunity. Sydney and Melbourne got the main benefits of national low-interest rates because those are the places the majority of immigrants went. Investment grade properties and A-grade homes are still holding their value. In order for property values to “crash” it means that people have to sell and no one will be available to buy. This is different from the normal ups and downs of the market. Four ways to make money in property: rent return, capital growth, manufactured capital growth, and tax benefits. Make your investment decisions based on fundamentals, not on the media. Now it’s important than ever to follow a system In 2019, there will be more media predicting market crashes, which could become a self-fulfilling prophecy. Interest rates won’t rise in 2019. Wages growth will probably only increase slowly in 2019. Markets will become more fragmented than ever in 2019. Brisbane property is likely to see growth in 2019. The inner suburbs are doing better than outer suburbs, creating a reverse ripple effect. If the market falls further, APRA will recommend the banks begin lending more Links and Resources: Michael YardneyMetropole Property Strategists Ahmad Imam MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne, and Brisbane Use he coupon code PODCAST and come as our guest Some of our favourite quotes from the show: “We’ve got so many clients who’ve been around the block a few times, who have been waiting for this opportunity, who’ve geared themselves up and we’re helping them buy investment-grade properties.” –Michael Yardney“Those who know what’s going on, those who’ve got a level of perspective, will see opportunities.” –Michael Yardney“There’s no way of getting rich quick at this stage of the property cycle.” –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Are you a good negotiator? Negotiating is something we it constantly in all aspects of our life, from relationships to which path you choose to take on a crowded street. And of course, negotiation is one of the skills developed by savvy property investors, business people and entrepreneurs Some people are very good at negotiation, while others simply take what the other party is willing to give them. What is the difference between those two groups? The first group knows how to negotiate. Today I’ll be talking about negotiation with the man who wrote the book on negotiation – in fact, he actually wrote 3 books on the subject – Wayne Berry. Wayne is the CEO of Top Gun Business Academy. Wayne has probably trained more successful salespeople than anyone else in Australia. So listen to our conversation to learn what you’ve been missing when it comes to negotiation. Some of the highlights from today’s discussion: Life is one big negotiation: most things we want or need are either owned or controlled by other people, so it’s important to be able to negotiate to get what we want. Life is easier if you’re a good negotiator. There are three leverage points in negotiation: Information Time Power The first step of negotiating is to gather all of the information that you think is relevant around the situation. Attitude and expectation are great sources of power. Have an attitude that everything’s negotiable is very empowering. Common mistakes people make in negotiation: Not realizing that everything is negotiable. Not doing any planning or preparation for the negotiation. Talking too much and not listening carefully. Negotiating will require different tactics depending on the personality of the person you’re negotiating with. You first need to build rapport and trust to negotiate effectively. If you have more options you’ll have more power in a negotiation, so if you don’t have other alternatives, you should create them. Concessions should be traded and never given away. Find out what the other party can do for you. Sequence of a negotiation: Preparation Figure out what the other party is likely to want Clarify what it is that you want Understanding the decision-making process of the other party Find out if there are any other parties who will be involved in the decision-making process and involve them early on  Links and Resources: Michael Yardney Metropole Property Strategists MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne and Brisbane Wayne Berry – Top Gun Business Academy Special Report – Sources of Power in a Negotiation Special offers from Wayne Berry – Online Sales and Negotiation Skills Program Some of our favourite quotes from the show: “A thinker has to be sold to, negotiated with in a very, very different way to an outgoing person like you or me, or analytical people need to be sold to differently than creative people.” –Michael Yardney “If you don’t like the circumstances, change the circumstances.” –Wayne Berry “We’re not taking advantage of people when we’re doing these negotiations, you shouldn’t feel that way. You’re taking advantage of the situation.” –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.

The beginning of the year is a good time to reflect on the last year and how things went, as well as consider what you want to do in the new year. Today I'm going to share with some of the things I wish I’d known earlier in life. I'll also chat with Ken Raiss about getting your kids into the property market. If you don’t have kids, don’t worry – there’s good information in there for you too. And I'll answer a listener’s question about the importance of past performance and how it relates to future performance of a property or location. 9 things I wish I knew back then Become the pilot of your life Everything changed for me when I learned that my thoughts lead to my feelings, my feelings lead to my actions and my actions lead to my results. This meant my inner world (my thoughts and feelings) controlled my outer world (my actions and results). The turning point was when I realised that I was responsible for all the things (both good and bad) that happened to me. I then became the pilot of my life and not a passenger. And even if it’s not true, I know I act differently, and my results are better because I believe I’m responsible for everything that happens to me. Keep your eye on the prize! When I was young no one taught me about the Reticular Activating System, that part of your brain that only lets you see in your surroundings what you focus your thoughts on. It pretty much always helps you to find what you are looking for. Setting goals and regularly reviewing them is one way to keep your focus on what’s important and to help you take action that will move you closer to toward where you want to go. Your attitude changes your reality. It’s the old “is the glass half full or half empty” story. When things happen in life that we don’t like, we can either choose to see them as a problem or as a solution waiting to be discovered. It took me quite a while to discover that if you change your attitude, you actually change your reality. When you have a positive attitude instead of a negative, one you start to see things and viewpoints that were invisible to you before. You must give to receive. As children, we are told that the joy is in giving rather than receiving. But as we become adults, for many life becomes about what we can get out of someone or something. However, if you want to increase the value you receive (be it money, love, kindness, opportunities) you have to increase the value you give. Because over time what you get is in proportion to what you give. While it would be nice to get something for nothing, that seldom happens. Be Pro-active rather than reactive There seem to be 3 types of people: Those who make things happen Those who watch what happens, and… Those that sit and wonder “what just happened?” Be in the first group and always be on the lookout for opportunities. Make your time count! How often have you heard someone say: “time flies”? Indeed, it does, so use it wisely! Just as you are careful about how and where you invest your money, you should also be careful as to how you invest your time. The Pareto Principle says that 80 percent of the value we receive comes from just 20 percent of what we do with our time. So what things do you spend your time doing that take a lot of energy yet deliver few results? Mistakes mean growth! Sometimes negative experiences, mistakes, and failures can be even better than a success because they teach you something new which another win could never teach you. However, we are often so driven to get things right that we fail to see the value in the things we get wrong. Instead, we spend our time wishing we had done it differently. Or not doing anything at all because the fear of making mistakes paralyzes us. If you get it wrong, learn from your mistake and make it count by doing it differently next time. One “failure” can – with time – help you create many successes. Don’t waste your time worrying Most things you fear will happen, never do. They are just monsters in your mind. And if they do happen then they will most likely not be as bad as you expected. So now when confronted with a challenge I put things into perspective by asking myself: What’s the worst that can happen? What’s the best possible outcome? And… What the most likely thing that’s going to happen This means you shouldn’t take things too seriously because that which seems like a big problem today, you may not even remember in five years. So, lighten up a bit. Time spent worrying is time that could be spent identifying opportunities and taking action. Don’t compare yourself to others. When you compare yourself to others you let the outside world control how you feel about yourself. Instead strive to become the best you can be and look at how far you have come, what you have accomplished and how you have grown. In conclusion, we live in the best country in the world and at the best time in history. Appreciate what you have and enjoy the journey of life because an attitude of gratitude is a simple way to make yourself and those around you feel happy. Options for Helping Your Children Get Into the Property Market | Ken Raiss Guaranteeing the Loan – if you’re going to do this, be cautious. Limit the guarantee to only the amount the bank requires to give your child the loan, not the entire loan amount. Gifting the Money – If you choose this option, keep in mind that the money you give them will become part of any matrimonial assets, which means that in a divorce, it could go to the in-law. Loaning Your Child Money– Be careful of the way that money is presented in the loan application, as it could impact serviceability. Gift a Property – If you own a property yourself or jointly, changing the ownership will trigger capital gains tax and stamp duty. Use a Trust – With this method, you could buy a property now that you could gift to your child at a later date without triggering tax consequences. A lineage clause in the trust can help keep the asset in the family line in the event of a divorce. Links and Resources: Michael Yardney Metropole Property Strategists MUST ATTEND  this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne and Brisbane Ken Raiss – Metropole Wealth Advisory Some of our favourite quotes from the show: “Those who’ve jumped onto a bandwagon of short-term growth – they’ll find that this year’s hot spot will become next year’s not spot.” –Michael Yardney “In my mind, it’s more important to look ahead than look backward.” –Michael Yardney “You’ve got to have the right structures at the start to ensure that your gift keeps on giving.” –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Have you ever felt that you’re not good enough? Have you wondered why you’re not appreciated or valued for who you really are? This happens to everyone, even successful business people and entrepreneurs. But why would wealthy and successful people feel they aren’t good enough? Something called imposter syndrome can make you feel as if you’re not good enough. Imposter syndrome causes feelings of inadequacy and self-doubt even in face of evidence to the contrary. If you’re wondering whether you not you’re good enough, there are questions you can ask yourself to help figure out whether you have what it takes to be successful. Questions to ask yourself Do you have the skills and knowledge that you need to succeed? If you only have the bare minimum of skills and knowledge, you’ll only achieve the bare minimum of success. Seek out virtuoso skills and virtuoso knowledge. Are you persistent? You’ll need to be in order to succeed. Persistence is not an inherent trait. The most persistent people are passionate about what they’re doing. Do you have an unquenchable thirst for knowledge? Successful people spend a lot of time learning about the thing that they want to succeed at. Are you a risk taker? Some people are too cautious, while others take too many risks. Successful people take risks, but they’re cautious and calculated risks. Do you know what you want to achieve? Successful people know how to focus on the thing that they want to succeed at. Do you have success habits? Whether or not you’re successful depends on whether you cultivate habits that lead to success. Do you have the right team around you? You need experts around you to lead you in the right direction, and you need friends and family to support you. The right people will lift you up and the wrong people will drag you down. Do you have a positive mental attitude? Optimism is a common trait among successful people. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney’s Mentorship Program Some of our favourite quotes from the show: “Many people believe that others, not themselves, others are the judge of whether they’re good enough.” –Michael Yardney “I’ve worked with a lot of high-achieving people who didn’t feel worthy of their success.” –Michael Yardney “Successful people seem to be continuously wanting to improve themselves.” –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

If you want to become more successful in life, business, and investing, you’re going to get a lot out of today’s show. Even if you’re not an entrepreneur in the sense that you would normally use that word, if you want to be more successful than the average Australian property invetsor you will need to be entrepreneurial. In this episode, you’ll hear me being interviewed by Brett Warren, the director of Metropole Property Strategists Brisbane. I’ll be answering questions that have been left on the website by my blog readers and my podcast listeners, as well as a few questions that Brett himself came up with. Highlights from the Interview with Brett Warren Why I got involved in property investment My first investment property What I enjoys about property The four ways to get money out of property How I suggest you choose a location to buy property When the best time is for someone to start investing in property What type of property I’m investing in and why The essential qualities of a successful property investor Why I’m still working and 0what drives me The most important lesson I have learned about property investment When I learned about the importance of mindset motivation How to make a mindset change Why successful people fail more often than unsuccessful people How Metropole can help potential property investors Why a buyer’s agent is important, even in this economy Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney’s Mentorship Program Brett Warren – director Metropole Property Strategists Brisbane Some of our favourite quotes from the show: “Performance isn’t possible in an empty theater. So what a privilege it is that I have a large and ever-growing number of people with sustained and enduring interest in what I have to do, what I say, and what I teach.” –Michael Yardney “My first property that I bought for $18,000 I still have now …is worth well over 2 million dollars.” – Michael Yardney “In my mind, you’ve got to invest for capital growth until you’ve built enough of an asset base. If you want cash flow, don’t buy real estate.” –Michael Yardney

We all understand the concept of fake news. The media plays with our emotions, our fear and our greed in an effort to get clicks and readers. Today I’m going to discuss 6 things the media won’t tell you about property investing that you should know. Then, in my mindset moment, I’m going to talk about a concept that’s helped me through my difficult times. After that, I’ll play a radio interview that I did with Laurie Atlas. In the interview, I talk about how you can make your kids richer and more successful in life. And if you don’t plan to have kids, don’t worry – the information in this interview can help you too. What the Financial Media Won’t Tell You About Property Investment Property investment is simple, but not easy. Half of the people who get involved in property investment sell up within five years. 20% sell within one year. Of those who stay in the property investment game, 92% never get past their second investment property. The media makes it sound easy, but it isn’t. It’s going to take you up to 30 years to become financially free through property. It takes a couple of property cycles to establish a large asset base. Residential real estate is a high-growth, relatively low-yield investment. The banks are not on your side. That doesn’t mean the bank is untrustworthy, but their job is to sell products, and not all of those products are in your best interest. No one can actually predict how the markets will act in the future. There are always surprises. There’s not just one property market. Each state is in its own stage in the property cycle, and there are differences even within one state. Super Parents Raise Super Kids Most of our habits are learned by age 9 People should aspire to be wealthy, not be driven by envy Reading can help your children become more successful People who were punished for losing their temper as kids are more likely to be successful Blaming others won’t help your child get to the next level The school system isn’t the right place to learn how to be successful and wealthy Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney’s Mentorship Program Laurie Atlas Radio Show Some of our favourite quotes from the show: “The problem is that most of us act irrationally and emotionally when it comes to money.” – Michael Yardney “You can’t tame the barking dogs. But you have it within your power to completely tune out from them.” – Michael Yardney “True wealth has nothing to do with how much money you’ve got. I’ve actually learned that rich people are actually very poor because all they’ve got is money. Wealthy people have got money plus relationships, money plus love, money plus the time to contribute back to the community, money plus health.” – 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.

Wondering what's ahead for property in 2019? Maybe you'd like to know what other Australian property investors plan to do? Well that's exactly what we discuss in today's show as we unpack the results of this year's Property Investor Sentiment Survey You'll hear what over 1,800 Australians feel about our current real estate markets and what they plan to do. You see...they took part in this year’s Property Investor Sentiment Survey run by my Property Update newsletter in conjunction with Your Investment Property magazine and onthehouse.com.au Being Australia’s longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. Some surprises One of the surprises is that despite our property markets moving to the slowdown phase of the cycle more than half of the respondents believe now is a good time to invest despite the fact that the vast majority of respondents (84%) believe that property prices will fall or remain flat over the next year. Clearly, they are taking a long-term view. However, this is significantly down from last year when 61% of respondents thought it was a good time to invest. At the same time, the percentage that were unsure increased to 23% (up from 16% last year.) However, they are realistic that they won’t enjoy quick and massive capital growth in the near future, but they still intend to buy more property in the next year. Our survey reveals that 42% of the respondents plan to buy an investment in the next year again showing strong confidence in property as a long-term investment. Not surprisingly this is down from the last 2 years where on both occasions more than half (52%) the respondents were planning to invest in the coming year. It’s also interesting to note where investors are planning to buy. South East Queensland is seen as the best place to invest over the next 5 years according to close to 70% of respondents (this includes Brisbane, the Gold Coast and Sunshine Coast.) Last year more than half of the respondents nominated Melbourne as the place to be last year, Their focus is on long-term capital growth, rather than an immediate equity boost, and they’re looking at property that has potential to add value,   Perhaps unsurprisingly, it also reveals that many investors are feeling the impact of credit squeeze with bank’s tighter lending restrictions. Almost half of respondents are finding the recent tighter lending criteria impacting their ability to purchase another property. Interestingly this is only slightly higher this year (48%) than last year (46%) 19% of respondents plan to buy a new home in 2019. This is down from 23% last year (but still higher than the number planning to buy a new home 24 months ago (14%) Links and Resources: Michael Yardney Metropole Property Strategists Ahmad Imam – Director Metropole Sydney Sarah Megginson Editor Your Investment Property Magazine Results of the 2018 Property Investor Sentiment Survey Some of our favourite quotes from the show: “And again, it’s not a competition, but it’s interesting to know what people are thinking, what they’re planning to do, because that’s going to, I guess, set the scene for the markets for the next year.” –Michael Yardney “The average property writer for the big media, they’re young people who probably have no background in real estate and wonder about these ugly greedy investors who’ve got properties, and they’re almost asking for the property market to crash.” –Michael Yardney “I’d rather buy in the better location and a smaller component of land, than further out in a house with a big block of land that isn’t going to do as well. As we keep saying, it’s the location that does the heavy lifting.” –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 wondering what’s going on with the property market – whether you should buy, whether you should sell, how your property portfolio is performing? The media is full of mixed messages, so no wonder you’re confused. There’s no doubt we’re at the next phase of the property cycle, what some call the slump phase. But not all properties are slumping. Today we’ll talk about what you should do as a property investor in a buyer’s market and which types of property will hold their own. We’ll look at previous cycles and research to determine which properties do better in a buyer’s market. I’ll also share a mindset moment, with a mentorship lesson from my own mentor Jim Rohn. Then we’ll have a chat with Ahmad Iman, Director of Metropole in Sydney, about what investors are looking for in terms of their financial goals. Which properties will outperform in a buyer’s market? The property market began to slow down around the middle of last year. Now the market is much softer. What happens next is dependent on finance and consumer confidence. Property values in some areas of Sydney and Melbourne may keep falling until sometime next year, but not by more than 5%. However, investment grade properties are not falling. They’re holding their value. The Perth property market is likely to bottom out sometime over the next year or so. Its recovery is likely to be slow. Hobart’s strong property growth is likely to slow down. Brisbane will probably be the strongest property market over the next couple of years Investment-grade properties and A-grade homes are holding their values even in the weak parts of Melbourne and Sydney. If you’re a homebuyer, your family needs should dictate when you buy your next property. This is a good time for first home buyers to buy a new property or for established home buyers to trade up. If you’re interested in investing, the best time to buy is when you have the financing to do so and the situation fits in with your long-term plan. Don’t try to time the market. How do your goals compare to other investors? Most clients have an end goal of financial independence. Beginning investors are looking for a property profile that generates $100,000 in passive income per year. The average Australian couple needs about $40,000-$50,000 just to live a modest lifestyle. $100,000 a year gross is very different from $100,000 a year net. Another common goal is 4 to 5 investment properties by retirement age or financial independence age. The size and value of your asset base and the quality of your investments is more important than how many properties you have. Experienced investors often have a goal of a property portfolio that generates close to $200,000 in passive income per year. It’s important to consider your own existing lifestyle and spending habits when setting a passive income goal. More sophisticated investors look at purchasing developments or blocks of units to renovate. Links and Resources: Michael Yardney Metropole Property Strategists Rich Habits Poor Habits Michael Yardney’s Mentorship Program Michael Yardney's Property Renovations and Development Workshop Ahmad Imam – Director Metropole Properties Sydney Some of our favourite quotes from the show: “And as always, steer clear of the many property spruikers that are disguised as investment advisors but who are actually working for the project marketers or the developers.” –Michael Yardney “Even the experts can’t time the market.” –Michael Yardney “As an investor, you need to take a long-term view, do your homework and research carefully and make sure you don’t overpay, and go out and buy that property today – the sort that you would have had to fight much harder for a few months ago.” –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.