Property Investment, Success & Money | The Michael Yardney Podcast

Many real estate investors and homeowners worry about the value of their property today. But it’s important to take a long-range view and think about what the value of property will be in the future.  In today’s episode, we’ll talk about what may happen to property values over the next 25 years and look back at what’s happened over the past 25 years. We’ll also have a chat with Dale Beaumont about Artificial Intelligence, and how that will change our lives in the coming years.  Where will the real estate market be in 25 years’ time?  While most homeowners and real estate investors worry what the value of their properties today, maybe a better question is “where will property prices be 25 years from now?” And the good news is that, believe it or not, the median house price in Sydney could be over $6 million and the median apartment price in our harbor city could be close to $3.5 million in 25 years’ time. Over the past 25 years, the median house value nationally has risen by 412% - an annual growth rate of 6.8% or $459,900 - Melbourne had the highest average annual price growth – 8.1% Sydney 7.6% Perth – 6.7% Hobart – 6.5% Darwin 6.3% Canberra – 6.0% Brisbane – 5.9% Adelaide – 5.9% Think about it - who wouldn’t like to buy their parent’s house for the price they paid for it 25 years ago? So, what’s ahead for property values? If property prices were to rise at the same rate as the past twenty five years, Australia’s median house value would reach $2.9 million by 2043. Here’s what Aussie’s report forecasts: Sydney house values $6.3 million Melbourne $5.8 million Canberra $2.9 million Perth $2.5 million Hobart $2.4 million Brisbane $2.3 million Adelaide $1.9 million  How will Artificial Intelligence change our lives?  Artificial intelligence is already driving cars, reading emails and suggesting replies, and making phone calls Digital assistants like Siri, Alexa, and Cortana are already mainstream We can look forward to more driverless cars within the next five to ten years People might choose to live further from work if they don’t have to drive themselves – driving time can become work time or entertainment time. Artificial intelligence can be taught to learn from the past and make predictions for the future. This can be applied to real estate trends. Artificial intelligence could be used to make phone calls on the behalf of investors to find investment properties that meet certain criteria.  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 Dale Beaumont  Some of our favourite quotes from the show:  “Another interesting trend that’s occurred – not surprisingly – is that the proportion of first homebuyers in the market currently is less.” –Michael Yardney  “What’s basically happening is that we’re trading our backyards for balconies and courtyards to live close to where all of the action is.” –Michael Yardney  “Sydney’s obviously growing at a much faster rate than the national averages and is going to add almost 2 million people to its population by 2037. That’s the equivalent of adding a new Perth into Sydney by then. –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 is plenty of evidence that what we find most stressful as humans is uncertainty, not change in itself. Why do some people seem to sail gently through all the changes life throws at them, while others get upset if they have to change even their breakfast cereal? The key is in how you view change, and your level of acceptance, uncertainty and resilience. In Tom Corley’s five-year Rich Habits study of 233 rich people and 128 poor people he discovered that we adopt the beliefs of our parents, family, mentors, culture, and environment. There are two opposing schools of thought that divide mankind. School of Thought #1: Self-Determination Drives Life Circumstances School of Thought #2: Predetermination Drives Life Circumstances Those who subscribe to School of Thought #1: Believe we are in control of our life circumstances. There is no one out there, no higher power, watching over us, guiding us. Those in this school believe success, wealth, failure and poverty are manufactured. We turn left or right, decide A or B, or do X or Y as a matter of free will, instinct or internal guidance. In other words, the circumstances of our lives are dictated by our own decisions, our own behaviors and the choices that we make. We, in effect, create our own destiny. Those who subscribe to School of Thought #2: Believe we are not in control of our life circumstances. Some higher power is watching over us, determining the circumstances of our lives. Those in this school believe success, wealth, failure and poverty are outside our control. We turn left or right, decide A or B, or do X or Y because some force of nature acts upon us, directing us in every aspect of our lives. In other words, the circumstances of our lives are not determined by us, but by external factors we cannot possibly control. We, in effect, are powerless over the course of our lives. When you subscribe to School of Thought #1 you embrace the concept that you are in control of your destiny; that you have power over the course of your life. As a result, you develop a mindset of self-reliance. Through hard work and personal initiative, you seek to create the life you desire. You pursue lifelong self-education, take calculated risks, seek feedback from others and carefully weigh every decision you make. You search for mentors to help you forge good habits that put you on the right path. When you subscribe to School of Thought #2 you embrace the concept that your destiny is predetermined; that you are powerless over the course of your life. As a result, you feel you are not in control of your life. You are a mere victim of the luck of the draw. Because you feel you are not in control of your life, you do very little to affect the circumstances of your life. You float along in life like a leaf on a fall day, carried by the wind. Which are you Something to think about. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Tom Corley Some of our favourite quotes from the show: “You have a future waiting for you and the future is determined by your habits, the way you think, therefore the actions you take, and therefore the results that you’re going to get.” – Michael Yardney “We are where we are today in all areas of our life, whether it’s financial, whether it’s relationships, whether it’s health, diet, because of all the decisions we’ve chosen to make, and the decisions we’ve chosen not to make.” – Michael Yardney  “The question is, are you an actor in this story that’s in your mind, or are you the storyteller whose actually got the right to be able to change the story?” – 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 our property markets slow down, more investors are interested in becoming involved in property development as a way of “manufacturing” capital growth. The problem is that along with the big profits there are many potential risks. However with good education, proper planning and a good team around you, property development is a great way to grow your property portfolio and end up having high growth properties that deliver strong cash flow and good tax benefits. So in today’s show I’m going to share: 7 reasons you should consider getting involved in property development 13 risks you must be aware of if you’re considering getting started in property development 8 tips for budding property developers The benefits of becoming a Property Developer. Savings   Profits Easier finance   Leverage   Tax benefits. Higher rental return Security The risks of becoming a Property Developer. Some of the significant risks of property development I have come across include:- Buying the wrong property – not appropriate for development. Buying the right property at the wrong price Buying at the wrong time of the cycle and not having the finance to hold on to your project Not doing a detailed pre purchase feasibility study – and missing out lots of figures. Building the wrong end product – too expensive, or not right for market demographics A downturn in the property market leading to lower property values or increased holding costs until the development properties are sold. Interest rates rising during the development process resulting in increased holding expenses and therefore lower profits. Increases in construction costs during the project. Changes in the supply and demand ratio for real estate market as we are currently seeing in the inner city apartment market. This of course depresses property values and reduces your project profit margin. Unexpected disputes with building or trade contractors or unions which can cause costly delays to a project. Changes to the laws relating to property development could adversely affect the profitability and viability of your development project. Unexpected delays and increased holding costs may be encountered when town planning (DA) approval is required for a development. Some inexperienced developers find that some of the improvements they have made to their properties do not result in an increase in value. As you can see many of these risks are outside the control of the developer. Hints for budding Property Developers. Here’s some advice for new property developers Some property investors move into the realm of property development not understanding the rules of the game are very different.   Property development is a great way of building a high growth, strong cash flow property portfolio but you need to approach development will realistic expectations. Currently the tighter finance climate is making it hard for property developers to fund their projects. It is likely you’ll need much more equity and serviceability than you think you’ll require to get started in property development. A great place for budding developers to start is by getting involved in property renovations, in fact that’s how many experienced developers initially learned their trade You’ll learn much of what you’ll need to know and you’ll make most of your mistakes in the first 3 or 4 projects you undertake so start small and don’t overcommit financially for your first few projects Property development is a great way to manufacture or create equity, it’s not a way to make an income (a living) from adding value and selling. Get a good team around you. The best tip is last – join us at my property renovations and development workshop on October 20th and 21st – it’s a training event not a sales event and comes with my personal guarantee Why not learn from a team that’s currently involved in over 50 medium density developments and has completed over 700 developments. Join us at our 2-day Property Renovations and Development Workshop, on October 20th and 21st we’ll take you through everything you need to know to manage your renovation team, and give you the skills to step up to the big leagues as an investor and property developer. Why not click here to find out more and reserve your seat? Links and resources: Michael Yardney’s Property Renovation and Development Workshop Some of our favourite quotes from the show: “Rather than buying properties at retail, when you become a property developer you can acquire your investments at 15- 20% below their market cost.”  – Michael Yardney “The really smart developers don’t sell their projects. They refinance them against their new higher value and take out their extra equity, this equity that they have manufactured by developing property and use it as seed capital for their next project.” – Michael Yardney “If undertaken correctly, property development can be very lucrative. If you buy your development site well, your investment will always be underpinned by the security of real estate in a prime position. – 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 property prices about to PLUNGE by 40-45 percent?"  Channel Nine's '60 Minutes' ran a feature with the sensational and alarming headline: "Aussie housing prices could fall by as much as 40% in next 12 months"  It’s déjà vu. Every few months, the media finds someone who’s willing to stick their necks out and offer a property market doomsday scenario, predicting the end of the world for property owners in Australia. In spite of the fact that such predictions have been proven wrong time and time again...      So, is the sky really going to fall this time?  Well, I think it's highly unlikely that the property market will crash.  But today I’m chatting with 2 experts, Pete Wargent and Dr. Andrew Wilson to bring some sense back to the discussion.  Some highlights from the chat with Pete Wargent  Different property markets behave differently, but generally speaking, if you own capital city property, you don’t need to worry about a crash. Australians do have higher household debt than people in other parts of the world, but it’s important to understand why that is. The government doesn’t own most of the housing stock, so most of the rental properties are owned by landlords. This means that Australia will likely continue to have higher household debt than other countries for the foreseeable future. In general, Australia’s debt is in the hands of people who can afford that debt – in the upper two quintiles. On the other hand, debt levels haven’t really increased in the lower income levels. In international terms, the number of people in mortgage arrears in Australia is very low. Tighter lending standards have caused an intended slowdown in the market, but a crash is unlikely.  Some highlights from the chat with Dr. Andrew Wilson    Should we be worried – are our property markets about to crash?   Looking at the historical data, the most significant fall in house prices since 1986 was 9.6%, and that occurred over 9 quarters. The next highest was 7.2%, and that occurred over 5 quarters. There’s no historical precedent for a 40% crash.   What’s the real story about household debt?   Although debt has risen with houses prices, the proportion of household income required to service higher debt has fallen over recent years despite low incomes growth and low real wages Although debt has risen with houses prices, the proportion of household income required to service higher debt has fallen over recent years despite low incomes growth and low real wages And since the last Census, wages are up 4.1% and mortgage rates are down 0.5% with house price growth dissipating.    What about mortgage defaults? Are they really a problem?   Such a huge volume of garbage is being written, filmed, podcasted, Facebooked, and blogged about mortgage stress right now that it’s nigh on impossible to keep up! An important metric to watch is the health of the labour market, with jobs growth still firing along and the unemployment rate continuing to decline to the lowest level since 2012, with further improvements expected over the next year or two.    What about the fear of many interest-only loans swapping to principal and interest?   Investors who have taken out interest-only loans three or four years ago are in a position where they could repay more because interest rates are lower than when they took them on. Also, they would have more equity in their properties. They have the equity to cover converting into an interest and principal loan and at a lower interest rate.    What do you see ahead for our property markets?   We’re in for a period where prices growth won’t be dissimilar from one capital city to another. It will reflect more local factors, like strong economic performance.  Links and Resources:  Michael Yardney Metropole Property Strategists Michael Yardney's Property Renovations and Development Workshop Pete Wargent Dr Andrew Wilson   Some of our favourite quotes from the show:  “It’s unfortunate to see so many investors buy into this fear mongering and make emotional, sometimes panicking decisions, on the result of this scaremongering.” –Michael Yardney  “It’s the property market’s version of the women’s magazines that say Jennifer Anniston is pregnant again or Prince Harry and Megan are expecting a baby.” –Michael Yardney  “I see the coming months as a great time of opportunity if you’re looking to buy new investment or upgrade your home, because some people are going to sit on the sidelines, worrying and concerned, by all the scaremongering in the media.” –Michael Yardney  PLEASE LEAVE US A REVIEW  Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.  

You’ve probably heard me say that I believe that property investment is a game of finance - with some houses thrown in the middle. Well, in today’s episode I’m going to tell you 10 things your banker won’t tell you but that you must know to become a successful property investor. Then Ken Raiss answers a listener’s question about whether you’re ever too old to invest. And even if you're not wondering if you're too old to invest, there are some great lessons in my chat with Ken. 10 things your banker won’t tell you: Bankers can only offer you limited options – they won’t tell you what other banks are offering, even if another bank has an option that’s better for you Bankers are salespeople – it’s their job to sell you financial products There are three doors into the bank: the retail door, the business branch, and the institutional branches Mortgage rates are negotiable An offset account is often better for you than a term deposit Bank fees make a lot of money for the banks Some fees can be waived – but you have to ask Bankers aren’t financial advisors The system will decide on your loan application You should shop around for the financial products that best suit your needs The 3 Stages of Financial Freedom Phase 1 – Accumulation. Investing doesn’t give you cash flow right away, so you need time to develop your asset base. Phase 2: – Consolidation. You slowly reduce your debt, increasing your cash flow Phase 3 – Living off of your cash machine Links and Resources: Michael Yardney Metropole Ken Raiss – Metropole Wealth Advisory     Michael Yardney’s Mentorship Program Some of our favourite quotes from the show: “Get a good team of people around you. It’s really too hard to do it on your own.” – Michael Yardney “Finance is the key to getting involved in renovation and development.” – Michael Yardney “When people haven't invested by the time they get to their 50s or 60s, deep down they are probably holding themselves back because of a concern with risk or a concern with debt.” – 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 to be the best performing property market over the next couple of years?  In today’s show, we’ll talk about where the best performing market will be, what to do and what not to do if you decide to invest there. In my mindset message I’ll explain why everything happens for a reason. And you’ll also learn why many Australians are going to remain in debt all of their lives. What investors must understand before buying in Brisbane People are starting to return to Brisbane as employment expands Most of the jobs in Brisbane are within a 10-12 kilometer ring, and that’s where people want to settle Brisbane has fewer auctions and more multi-offer scenarios than the southern states Brisbane is prone to flooding and storm water runoff – you need to know what to look for Lifestyle is different in Brisbane, indoor/outdoor living is popular. Brisbane is not Queensland – you can’t just invest anywhere in Queensland 5 reasons you’ll always be in debt You only make the minimum credit card payment – when you do this, you end up mostly just paying interest, and you don’t make any progress on paying off the principle You spend too much on holidays – consider avoiding people and situations that tempt you to overspend You think debt is just a normal part of life – you shouldn’t need to rely on debt just to maintain your lifestyle You don’t have a contingency fund – emergencies and unexpected expenses will occur. If you have a rainy day fund, you won’t need to rely on credit cards when those situations arise You allow expenses to rise with your income – make sure that you aren’t adding to your debt by spending more than you need to just because you’re making more Links and Resources: Michael Yardney Metropole Michael Yardney's Property Renovations and Development Workshop Michael Yardney’s Mentorship Program Brett Warren – Director Metropole Properties Brisbane Some of our favourite quotes from the show: “Remember that people come into your life for a reason, for a season, or for a lifetime.” – Michael Yardney “When we’re going through particularly difficult times, it can very comforting to thing that there’s a purpose to this.” – Michael Yardney “The thing about getting into debt is that anyone can do it. The hard bit, of course, is getting out of debt.” – 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

Want to become smarter? According to the latest research, you can. Contrary to what was previously believed, your IQ is not fixed. Most IQ tests attempt to measure two types of intelligence - crystallized and fluid. Crystallized intelligence relies on existing skills, knowledge and experience to solve problems by accessing information from long-term memory. Fluid intelligence, on the other hand, relies on the ability to understand relationships between various concepts to solve the problems. It is independent of any previous knowledge, skills or experience and accesses information from short-term memory or "working memory". Researchers have concluded that this part of intelligence can be improved. So how do you do this? That’s what we’re going to discuss today. When you engage in certain mental and physical activities, the size of your axons grows, the number of dendrites multiply and you increase the number of synapses inside your brain. When your mental and physical activities are limited, your axons shrink, reducing the number of dendrites and synapses. WHAT ACTIVITIES GROW AXONS, DENDRITES AND SYNAPSES? Reading to learn Auditory learning Visual learning Studying (Semantic Memory) Learning a new language Utilizing a new language through repetition or absorption in a new country Traveling – exploring different parts of the world and different cultures (Episodic Memory) Learning a new skill Novelty Daily exercise Engaging in athletic activities Practicing a skill, new or old, repetitively Creative pursuits such as writing, painting, music, engineering, building design, invention, etc. Increasing your communications with others (networking, volunteering, working, social interaction, etc.) WHAT SHRINKS AXONS, DENDRITES AND SYNAPSES? Absence of learning (no reading, no auditory learning and no visual learning) Loss of skills due to inactivity Isolation Being Homebound Being set in your ways – absence of novelty Not exercising No athletic activities Watching TV (exceptions: TV shows that teach) Reading Facebook, Twitter, Snapchat, etc. (exceptions: posts that teach) If you forge daily habits that increase the size of your axons, number of dendrites and the synapses inside your brain, your IQ will grow. Good habits, therefore, can grow your IQ throughout your entire life. Conversely, bad habits can cause your IQ to decrease during your lifetime. Links and Resources: Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney’s Mentorship Program Some of our favourite quotes from the show: “Interestingly, exercise is one of the actions that can increase how smart you are.” – Michael Yardney “When you’re a spectator, your brain cells are not growing. In fact, they’re shrinking.” – Tom Corley “The message today is your IQ is not fixed at birth, it’s not related to your genetics, in fact, your habits, what you do regularly can either help you become smarter or less intelligent.” – 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.

An insider’s guide to renovating properties for profit In today’s show, we’re going to give you a dose of renovating reality. Renovation can make your property more attractive to tenants, reduce your vacancies, and minimise lost rent. But it’s important to approach renovation strategically, so that you maximize the value of your property, without spending more than you need to. Today, we’re going to talk about what works and what doesn’t, and about the common mistakes that property renovators make. Things to Keep In Mind When Renovating: Avoid over-capitalising.Start with establishing a post renovation market appraisal on the property. Allow for purchase price and any associated costs, interest, marketing or selling fees and a healthy buffer and deduct that from the post Reno market appraisal. What's left is the budget, inclusive of profit for the renovation. As a rule, keeping the renovation budget to 10% of the market value of the home is about Allow a contingency amount. Once a budget is established, allow a contingency based on your experience level and extent of the renovation works. Allow a little more if structural works or there's planning/building approvals required and a little less if the works are purely cosmetic. Remember, renovating is full of variables that not allowed for could quickly make your project unfeasible. Tailor the renovation for the target market. Becoming an expert in the area by attending property inspections of similar properties, discussing the expectations of the tenants with local real estate agents will help determine the scope of works for your renovation. By knowing what the market expects, you can tailor the works to suit that market and therefore not spend on things that may not bring a return on your dollars. First impressions matter. Natural light, fresh paint, new floor coverings and window furnishings go a long way towards transforming a tired old property into something that will be sort after. Often, it's the little things that can make or break a successful renovation. Neutral colours allow tenants to create their own identity with their belongings. Dominant colours and textures tend to close in the wall and makes spaces feel smaller than they are. Kitchens and bathrooms sell properties. Beware diluting your dollar by doing half the job. When assessing the scope of works for your renovation, keep in mind that the two big ticket items, the kitchen and bathroom generally come a package deal. If you renovate the kitchen but leave the original tired and rundown bathroom, it will devalue the kitchen, and vice versa. If the budget doesn't allow for both them, it may be worth deferring renovation works until the budget is healthier or consider undertaking a smaller refurbishment to include repainting, floor coverings and window furniture or air-conditioning to improve the first impression and the feel of the property. Avoid DIY. Unless you’re a skilled tradesperson, don't get lured into to misconception that you'll save money by doing the work yourself. TV shows like the block glamorise and simplify the renovation process. In most cases, it will cost you the same or more but always take you longer if you’re doing the work yourself, therefore resulting in poor finishes, delayed completion dates and unnecessary holding costs due to the extended completion times. Remove the emotion. Adding value to an investment property or a flipper should be run like a business. There's no room for latest fad in design and you shouldn't be trying to make the cover of Belle magazine, that's for your own home. The purpose of renovating investment properties should always be about maximising both the rental return and capital value of that property. Get a good team around you. Renovation involves coordinating various tradespeople all of which are managing a whole lot of other 'jobs' at the same time. Discuss your schedule and plan for the renovation and seek their assistance and advice. Remember, they're the experts. They've done it before and probably seem the mistakes others have made. By getting close to your trades, you'll avoid falling into the same trap. Stretch. You normally get only one chance per property – do it right and don’t skimp Links and Resources: Michael Yardney Metropole Greg Hankinson - Director Metropole Constructions Some renovation case studies 2018 Property Renovations and Development Workshop Some of our favourite quotes from the show: “Over the years I’ve found that renovating is full of variables. Things crop up that you didn’t foresee, and it suddenly makes what looked like it was going to be a great project not profitable.” – Michael Yardney “It’s not what you like; it’s actually what the target market would like.” – Michael Yardney “You’re not going to get two dollars back for every dollar you spend, despite what some of the magazines and some of the seminars will tell 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.

What is currently the most desirable location in Sydney? The answer may surprise you. Areas like the eastern suburbs of Sydney or the lower north shore may immediately spring to mind.   And yes, they have been and will continue to be desirable due to their affluence. However, there is no doubt that the underestimated location in question, which has long been the underdog, is now dominating livability studies due its cultural amenities, transport options and great value. Have you figured it out yet? Well, it is none other than the inner west of Sydney. The inner west is emerging as one of the most sought-after local government areas in Sydney. From Dulwich Hill to Newtown, Leichardt to Balmain, the metropolitan area directly west of Sydney CBD is now starting to shine as the ‘Europe’ of Sydney.   Domain suggests that “the unassuming inner west may once have been overshadowed by the flashy eastern suburbs, the bohemian inner city and the blue-ribbon lower north shore. But in recent years, this cluster of neighbourhoods stretching due west of the CBD has emerged as Sydney’s liveliest and most livable precinct – and, for many prospective buyers, it’s now their top pick.” So, what makes the inner west so desirable? Let’s run through a few pointers. Love it or hate it, the inner west has the reputation of being the most liberal, socialist, green, intellectual part of Sydney. Accordingly, the area has become increasingly gentrified over the past decade. The inner west shares the livability and similar cultural amenities to affluent areas like the Eastern Suburbs and Lower north shore but at a much more affordable price point making it fantastic value for owner occupiers and investors alike. First home buyers are also finding that their money stretches further in the inner west. The inner west is one of the oldest areas of Sydney with the architecture ranging from art deco apartments, terraced houses and small mansions that reflect its development in the Victorian and Federation periods. This adds to the inner wests appeal and scarcity value. The region’s unique housing attributes are also helping it pull ahead of the pack. Much of the terraced housing stock in suburbs such as Newtown and Annandale dates back to the 1860s and has become coveted by affluent buyers seeking historic charm coupled with low-maintenance living.” It is one of the few local government areas that has access to Bus, ferry, light rail, train and cycle paths. Transport infrastructure within the inner west has never been stronger with locals seeing the benefit as Sydney’s population continues to swell.   “There’s a lot to be said for excellent public transport, no matter your income level. The buses are excellent. The light rail gently wends its way from Dulwich Hill to the city. The Inner West train line connects even more suburbs. And people in Rozelle and Balmain can catch the ferry. All that choice is very attractive.” The inner west has certainly proven to be an investment grade area that is both strong in having wealth building rates of growth but also stable, in that due to its local economic growth drivers will not fluctuate in value as much as the outer suburbs of Sydney. Success Is Easy, But So Is Neglect Jim Rohn suggests that when giving the choice of "easy to" and "easy not to" that you don’t neglect to do the simple, basic, "easy"; but potentially life-changing activities and disciplines Pros and Cons of Rentvesting in Sydney Pros: You can enter the property market sooner You can live the lifestyle you want in your dream home without waiting You’ll be able to start building wealth sooner You can save for your dream home while you rent You have more flexibility to change your living situation if your circumstances change You have the freedom to move around if you’re not ready to settle down in one spot You can take a tax deduction on the interest payments on your investment property loan If you want to live in an area that isn’t a great spot for investment, you can live in one area and invest in another Cons: Buying an investment property before buying your own home may seem counter-intuitive Rent money is often considered “dead money”, and this can be a sticking point for some people You may eventually have to move out of a rental home that you’ve formed an emotional connection to You’re limited in how much you can renovate or upgrade a rental home Links and Resources: Michael Yardney Metropole Ahmad Imam – Director Metropole Property Strategists - Sydney Rich Habits Poor Habits Michael Yardney’s Mentorship Program Some of our favourite quotes from the show:  “The way one lives in Sydney has evolved, so more people are happy and expecting to live in apartments in Sydney, as they would in any other major metropolis in the world.” – Michael Yardney “One of the things I want to point out is that it’s always been harder for first-time buyers, and study after study has shown it’s really not harder today than it was 40-50 years ago.” – Michael Yardney “Rentvesting won’t be the ideal strategy for every investor, but if you’re just starting out or if you’re prepared to think outside the box and do things differently to get ahead, then becoming a landlord and a renter may just be the right way forward for 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.

Today I explain How to Profit from Property Development in the current property markets. Listen in as I chat with property development expert Bryce Yardney and we discuss: Why more investors are keen to get started in property renovations or property development. The importance of learning from trusted educators and mentors rather than the new breed of “get rich quick educators.” The four different levels of property development available to investors The benefits of becoming a property developer The big risks involved in property development at this stage of the cycle.  What is required to fund a property development project. I also walk through my 8 stages of the property development process Pre Purchase  Concept stage Purchase Town planning Working Drawing and documentation Pre Construction Stage Construction Completion Links: My Property Renovations and Development Workshop