Property Investment, Success & Money | The Michael Yardney Podcast

What’s happening in the property markets around Australia? In today’s episode, I’ll speak with four experts to give you an update on what’s happening state by state.  You'll hear how our property markets peaked in September last year, and while the boom is over, it seems we’re in for a benign correction. Some areas are still growing, while others are slowing down.  In most capital cities, I believe that we’ll end up with values higher at the end of the year than they were in the beginning.  Here’s some of the things we discuss: Melbourne Property Market with Kate Forbes: The Melbourne property market is consistently performing well. It may not be the best capital city performance at the moment, but it has been one of the best performers on a consistent basis over the last decade. Capital growth will continue in the Melbourne market, but not to the same levels that it has been. Melbourne is experiencing a population boom because of its economic activity Melbourne will continue to see rental hikes over the next couple of years Investors are less able to get into the market in Melbourne due to new APRA regulations Advice for investors looking to get into the Melbourne market  Sydney Property Market with Ahmed Imam: Why the Sydney market is fragmented Dwellings aren’t being built fast enough to keep up with population growth and migration in Sydney How many houses are being built each week in Sydney – eyet there is still a deficit Infrastructure projects than are occurring in Sydney How Sydney property ownership will look different going forward Brisbane Property Market with Brett Warren: What was holding Brisbane’s property market back, and why it’s doing better in 2018 What’s on the horizon for Brisbane’s property market Interest in Brisbane from overseas Why homebuyers are getting back into the Brisbane market, and how that affects property values Rental prices are continuing to grow in Brisbane What type of Brisbane properties are best for investing in Property performance on the Sunshine Coast and Gold Coast Economic Factors Affecting Property Markets with Ken Raiss: External factors that are affecting Australia’s economy How unemployment, wages growth, and infrastructure expenditures are affecting Australia’s economy How the infrastructure boom is going to affect Australia’s economy in the coming years Whether the average Australian household is in good shape to take on more property debt Despite the slow wage growth, there are no major speed bumps ahead in the Australian economy Other Capital Cities in Australia: Adelaide: Adelaide is very fragmented and has few growth drivers. Overall, home value growth is low Perth: Perth’s market peaked in June 2014 and hasn’t reached bottom yet, although it’s getting close. It’s too early for a counter-cycle of investment Hobart: Hobart is Australia’s most affordable capital city and has delivered the highest capital growth over the last year. However, the market is very small and it has few long-term growth drivers Darwin: Darwin is still suffering from the end of the mining boom. Housing prices will likely continue to fall through much of this year. Canberra: Canberra has a strong economy and above-average population growth. However, Canberra has very high rates of land tax that are probably going to get higher. This disincentivizes investors. Regional Markets: Some regional areas perform better than some capital cities, but overall the trend is toward capital cities being a better investment.  Links and Resources: Michael Yardney Metropole   Kate Forbes Ahmad Imam Brett Warren Ken Raiss Some of our favourite quotes from the show: “You shouldn’t change your long-term strategy because of short-term ups and downs in supply and demand or finance.” Michael Yardney “I see the next major spending spree is really the infrastructure boom which is going to drive us through the next decade.” Michael Yardney “This year’s hot spot very quickly becomes next year’s not-spot.” Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Who wouldn’t like to buy their parents’ house at the price their parents paid years ago? In today’s show we’re going to look at the past as I have a chat with Pete Wargent to see what clues it can give us about the future of property.  We discuss what would happen if Crocodile Dundee would have to assess the changes that happened to our property markets in Australia since 1986 – maybe he’d gone on a walk about State Side for a few decades.  What Mick Dundee would think of present-day Australia could give you a very different perspective on current conditions. Having the benefit of hindsight can give you insight into the future. While you may not be able to go back and change past decisions, maybe you could use this information to predict how things are going to unfold going forward. Some of the things we discuss: How and why the population in some of Australia’s cities, like Sydney and Melbourne, have dramatically increased in the last 30 years The changes in Australia’s workforce over the last few decades, including that how the female workforce has increased to the highest levels yet How the general perception of debt and interest rates have changed along with the demographics in Australia How entertainment has changed in Australia since the 1980s, and how increased screen time has increased connectivity between people How crime rates have changed over time, particularly in the cities. The way the increasing population in our cities affect the quality of life Why Australia’s economy is improving and will continue to improve in the near future How immigration has affected the median age in Australia What Australia might look like 30 years from now Links and Resources: Michael Yardney Metropole Wealth Retreat Pete Wargent Daily Blog Pete Wargent on Property Update Some of our favourite quotes from the show: “You’ve got take into account the general economic circumstances, what’s happening to the economy, inflation, the cost of goods, when you understand what interest rates are and whether you should take on debt. Good debt has never been an issue, not way back then either.” Michael Yardney “Many houses have more television screens than they have people, and then they wonder why the money doesn’t last the month out and why their budgets don’t meet.” Michael Yardney “One of the things I’ve noticed is that we’re now the second-wealthiest country in the world on a per-capita basis, in terms of household wealth.” Pete Wargent Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Why are the best business owners and entrepreneurs crushing it, while most are struggling? Just in case you hadn’t noticed, it’s tough out there at the moment for business owners, entrepreneurs and many people in professional practices. Having said that, while many are struggling, some business owners are crushing it - so what can we learn from these successful people? A little while ago I was having a chat with Mark Creedon, my personal business coach and a director of Metropole Business Advisory about the reason why many business owners & entrepreneurs don't succeed. We were discussing that in fact the reason why certain businesses were crushing it are down to 3 fairly simple behaviours (and it has nothing to do with having unlimited marketing budgets or having hundreds of people at your 'beck and call'). In fact they were so simple that I couldn't resist myself, so I pulled out my iPhone and recorded the conversation which I wanted to share with you today

Are you having money problems? Are you where you hoped to be financially at this stage of your life? Well…if you want to be in a better financial situation, then this week’s show is for you because I’m going to debunk 15 Myths that could be killing your wealth potential.  You see…money doesn’t discriminate; it doesn’t care who you are or where you come from. No matter what you did yesterday, today begins anew and you have the same rights and opportunities as everyone else to become wealthy.  Yet the sad reality is that the majority of Australians will never achieve financial freedom.  So, join me in today’s show as I explore the common myths about money that hold many people back from achieving their financial goals. Myth # 1: It takes money to make money Despite what some people believe, it doesn’t really take a lot of money to make money. Many Australians have untapped equity in their homes that they can use as seed capital for investments, while others will have to learn the discipline of saving to get some start up capital. Then all they need to do is invest in high growth investments such as residential real estate and use the magic of compounding, leverage and time to grow their asset base. Myth # 2: I don’t make enough money. Almost everyone makes enough money to become an investor. The truth is most people don’t have an income problem, they have a spending problem. Look at your current wage and ask yourself; how much am I likely to earn over my lifetime? For most of us, the answer will probably be over a couple of million dollars. The problem is most of us spend as much as we earn. You’ve got to start living within your means, paying yourself first, saving a deposit for a property and investing in order to break your current pattern. Myth # 3: My job and superannuation will take care of my financial future. If you accept my definition of financial freedom as having enough passive income to finance the lifestyle you desire, without having to work; you will never achieve this through your job or superannuation. Instead you will need to take control of your financial future by investing. You just can’t save your way to wealth Myth # 4: I’m not smart enough. In our country everybody has the ability and opportunity to become rich. Successful people come from different backgrounds and while some have university degrees, others never finished high school. To reassure you that an education doesn’t equal a financial fortune, here are a few multi millionaires who never graduated from college: Bill Gates (Microsoft), Michael Dell (Dell Computers) and Steve Jobs (Apple). The truth is you can do whatever you want; not being smart enough is just another excuse. Myth # 5: Investing is complicated. Developing your own financial freedom is only as complicated as you make it. Sure gaining the knowledge to become financially independent is challenging, but many new things seem more difficult than they are until you develop an understanding of them. Investing is no different. It’s easier than ever before to learn the fundamentals of wealth creation, with limitless tools available in today’s high tech, info-laden world. The key is to learn from the right people – those who’ve already achieved what you want to achieve. Myth # 6: Investing is risky. The dictionary definition of “invest” is: “To commit (money or capital) in order to gain a financial return.” The word “risk” doesn’t even get a look in. However, many people speculate when they think they are investing – they buy a property in a secondary location or off the plan “hoping” it will increase in value. Speculation is risky. On the other hand, finding a property with an element of scarcity so it will always be in strong demand, in an area that has always outperformed the averages and buying it below its intrinsic value, is a proven investment strategy that minimises your risk. Myth # 7: You have to know how to time the investment markets. It’s often said that timing is everything when investing, but that’s not really the case. Sure timing matters – you don’t want to buy property at the peak of the boom, but successful investors find that timing isn’t really that important. Have you noticed how some investors do well in good times and do just as well in bad times, while others do poorly in good times and even worse in bad times? The truth is, successful investors know how to create wealth at any point in the property cycle while unsuccessful investors manage to lose money at the same stages of the cycle. This suggests to me that it’s not our external world that determines whether we make money; it’s something inside us – our mindset. Myth # 8:  The rich are lucky. The truth is that success in wealth creation is no more about luck than is success in anything else in life. To become wealthy you have to be in control of your finances and not count on good fortune. When you have a proven investment system or strategy, luck becomes unnecessary. I’ve played Monopoly a couple of times with some financially intelligent people and I realise now that, contrary to what I thought when I was young, it’s not a game of luck. Good players know the right spots on the board to get the best return on their investments. They know how to acquire and control the best “monopolies” in order to collect the highest rents. They’ve learned to negotiate and find ways to make great deals. They’ve learned how to take the luck out of Monopoly and consistently win big as a result. To me, this sounds a whole lot like the real world of investing. You need to learn how to take the luck out of wealth creation and instead develop smart strategies to get ahead. First you need to learn how to play the game, and then you need to know how to win the game. Myth # 9:  To become rich you must diversify. Wrong! Yet that’s what most financial planners suggest isn’t it? Diversification leads to an average outcome. I’ve found that successful investors don’t diversify -they cultivate the skills required to make better, smarter investing decisions and specialise in one niche. “Wide diversification is only required when investors do not understand what they are doing”  Warren Buffett  “Many financial advisors recommend that you diversify for your own protection. What they fail to tell you is that it is also for their protection. Since most financial advisors cannot tell you exactly which stock or mutual fund is a great investment, they tell you to buy a bunch of them” Robert Kiyosaki  Myth # 10: Paying off your house provides security. This is one of the old myths many of us learned from our parents, who probably learned it from their parents. But it doesn’t make sense in the new financial era. The problem here is that once you’ve paid off your house, you end up with idle equity sitting under your roof doing nothing; equity you could use as a deposit to buy an investment property and grow your wealth. Myth # 11: All the good investments are taken. Opportunities are always out there – in every market. Sometimes there are a lot and sometimes there aren’t. Some are obvious and others are opportunities you create by understanding investment markets. Sure, all of yesterday’s deals have been taken, but tomorrow’s deals have not. Someone will snap them up. Why shouldn’t it be you? Myth # 12:  If you want to do it right, you have to do it yourself. There’s no such thing as a self-made millionaire. All successful property investors have a good team of professional advisors and supportive mentors around them. That doesn’t mean you should hand over full responsibility for your wealth creation to others. But the rich recognise that they can’t be an expert in all aspects of wealth creation, so they find a team of experts they can lead in order to help them achieve their goals. Myth # 13:  I’ve done everything wrong! It’s too late. It’s never too late to learn how to invest or to overcome your mistakes. There are many success stories of people who conquered all sorts of adversity, or started investing later in life and ended up achieving financial freedom. In fact, Ray Croc was over 50 years old when he built his very first fast food outlet. You might have heard of it – it’s called McDonald’s. Myth # 14: Debt is bad Most Australians believe debt is a dirty word, but not all debt is bad. Savvy property investors know how to use good debt to buy appreciating assets. Myth # 15: It doesn’t matter what I want – I just can’t do it. Subscribing to this myth is almost a guarantee of failure, because our beliefs and perceptions become our reality. Some people who’ve had a few failed attempts “learn” that wealth is beyond their control and they can’t affect the outcome. They remain in a cycle of victimisation all their lives. This is one of the reasons why the rich get richer – they believe they are in control of their destiny. You must also believe you’re in control and act as if you’re in control. Then pretty soon you’ll be surprised by the results you achieve. Invariably, the more success you have the more your thoughts about what you can and can’t control will alter for the better. Yes – you can do it! There’s no way money can know who’s in control of it, what their qualifications are, what ambitions they have or what they’re going to do with it. Money is there to be used and spent, saved and invested. It can’t judge whether you’re worthy or not.  Now that you understand some of the myths that have held so many people back, the good news is you can do things differently. Choose to change your beliefs to produce outrageous results and reach every goal you set. Of course while property investing may be simple it’s not easy. And that’s not a play on words. Fact is, around 20% of those who get involved in property investment sell up in the first year and close to half sell their property in the first 5 years. And of those investors who stay in property, about 90% never get past their second property. So if you want financial freedom from property investment to fund your dreams, you’re going to have to do something different to what most property investors are doing. You’re going to have to listen to different people to who most Australian property investors listen. You’re going to need to set yourself some goals and follow a strategy that’s known, proven and trusted. Then you grow your property investment businesses one property at a time. Of course…you need to buy the right type of properties. One that has a level of scarcity, meaning they will be in continuous strong demand by owner occupiers (to keep pushing up the value) and tenants (to help subsidise your mortgage); in the right location (one that has outperformed the long term averages), at the right time in the property cycle (that would be now in many states) and for the right price. To become a successful investor you will need to surround yourself with a team of independent and unbiased professional advisors (not sales people) – a team of people who are known, proven and trusted, so it is probably appropriate to remind you that in changing times like we are experiencing, no one can help you quite like the independent property investment strategists at Metropole. Remember the multi award winning team at Metropole have no properties to sell, so their advice is strategic, independent and unbiased. Links and resources:   Michael Yardney’s Mentorship Program   Rich Habits Poor Habits   Metropole  Quotes: “Most people don’t have an income problem, they have a spending problem.”  Michael Yardney “My definition of financial freedom is to have enough passive income to finance the lifestyle you desire without having to work.”  Michael Yardney “Take control of your own financial future by investing and building an asset base.”  Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.                      

Why is Michael Yardney still working? | Learn the Money Habits of the Rich Making money and creating wealth to achieve financial freedom is usually the reason why people invest in property. This means that property is really just a vehicle for attaining money and that's one of the reasons today’s show is about money. I'm going to segment this show into three parts. If you're like many other listeners of my podcast you may wonder why I’m still working. Well today I break that down for you and share some insights into what makes my mind tick.  Then I share Jim Rohn’s wisdom on changing your life, and Tom Corley is here to talk about the money habits of the rich.  Why Is Michael Yardney Still Working? Yes I am truly financially free, owning a substantial property portfolio across a number of sectors. I’ve built a Cash Machine that gives Pam and me real choices in life. I don’t have to work, but I really enjoy what I do. Enthusiasm is the reason successful people keep doing what they do. They have developed an intense enthusiasm for what they have been doing which results in being successful. I still enjoy putting deals together, bidding at auctions, the psychology of negotiating, teaching and putting training programs together, and passing my knowledge forward. And I am still unashamedly enthusiastic about making money. I enjoy passing it on to future generations and contributing significantly to charity. I’m very grateful for what I’ve got, and I believe that it is my obligation to repay the world.  That is why I spend so much time writing, educating, and putting together this podcast. These activities are the least “profitable”, but the most rewarding things I do. You Can’t Change a Season, But You Can Change Yourself: My mentor Jim Rohn believed in the power of choice and attitude. It’s up to you to decide and determine your life through your attitude and your choices. Life is full of seasons, and you need to learn how to handle the winters. You must learn how to handle difficulties, because they come after opportunities. Get stronger, wiser, and better.  Learn the Money Habits of the Rich with Tom Corley: Habits are repetitive behaviours, thoughts, beliefs, or emotions. 40% of our daily activities are habits. We are where we are because of our habits. Habits are a reflection of our lives. If you have a great life, you have more good habits than bad habits. Such as… Live below our means. Spend less than you make and save and invest the difference. Don’t gamble. Gambling is a tax on poor people. Reading is about learning, and learning is about growth. We need to grow into the person we need to be in order to be successful. Knowledge opens our eyes to opportunity. History exposes mistakes of the past. Rich people don’t waste time watching TV and surfing the Internet. Links and resources:    Tom Corley   Rich Habits Poor Habits   Wealth Retreat   Jim Rohn   Metropole Our favourite show quotes: “I spend all day talking about property while drinking coffee and dealing with nice people. Why wouldn’t I still be working?” Michael Yardney “If you are doing something that you don’t have an intense enthusiasm for the likelihood of success is slim indeed.” Michael Yardney “Everybody has the capacity for intense enthusiasm, you’ve just got to find the right outlet for it.” Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

If you are looking at buying a new home or investment this year, odds are you’ll have to consider buying a property at auction. So today we discuss the process of what to do before, during and after a property auction, including some great tips of what to do if the property passes in. And even if you’re not planning to buy at auction in the near future, listen in as I discuss the psychology of negotiating with agents before and after the auction with Bryce Yardney. A property buyer’s guide to auction success: If they have a good property for sale with the likelihood with strong buyer competition, most vendors will put their property to auction. So don’t avoid buying at auction - there are a lot of good properties for sale by auction and if you know what you’re doing it’s a relatively transparent process. Do your due diligence Get finance pre approval Get your purchasing entity organized. Get a solicitor to check the contract Have any inspections or reports organised. Prior to auction: Attend as many auctions as you can and understand how they work. If possible check out the auctioneer who will be conducting the auction you’re planning to buy at. Do your research and understand your market. Know what the property is worth. Let the agent know that you are interested before the auction, but play your cards close to your chest. Get a copy of the contract and vendor statement checked by a solicitor. Why not get an experienced buyers’ agent on your team to bid for you? Bring a cheque book or bank cheque to the auction or organize an electronic payment. Determine the price you are prepared to pay prior to the auction. Pick three prices. A price you love, a fair price, and a walk away price. Never stop bidding on a round number  -  give yourself 3 or 4 bids above a round number. Arrive early at least a half an hour. Survey the landscape, see who is there, and find out who your competition is. Dress nice and portray confidence. Stand front and center and let people know that you are there to bid. Start with a strong bid and make your last bid as strong as your first bid. Be prepared to walk away if the price gets too high. If the auction stalls, put yourself into position to negotiate with the vendor when the property passes in by being the highest bidder. Don’t follow the agent inside like they ask you to. Show a position of strength on your own turf. Ask what the vendor’s reserve price is? Sound surprised. Then ask what the lowest price they are willing to sell for. This is just another starting point for negotiation. Don’t be afraid to drag out the negotiations if there is no other competition for the property. You are not obliged to meet the vendor halfway. This is where you would benefit from having a professional property negotiator on your side. Links and resources: Bryce Yardney Michael Yardney Metropole National Property & Economic Market Update Promo Code: Podcast Dr. Andrew Wilson Ken Raiss Podcast Episode 14: Do Real Estate Agents Tell White Lies to Make a Sale? | This Is the Best Predictors of Future Success Podcast Episode 13: Learn to Negotiate Like a Pro from a Negotiating Pro Property Update App Some of our favourite show quotes: “If you come prepared with a plan buying at auction can be a very exciting experience.” Michael Yardney “A lot of buyers see auctions as highly stressful events and they are worried that they may pay more.” Bryce Yardney “I like watching the auctioneer and the person selling the property. You will be ahead of the game understanding the techniques and psychology behind buying and selling a property.” Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.  

What's the right investment strategy now that we've moved to the next stage of the property cycle? When it comes to property investing, you will often hear two conflicting philosophies. Some say you should invest for capital growth, and others say you should invest for positive cash flow. Now that we are in a period where capital growth is going to be lower, more investors are wondering if they should change their investment strategy and look for cash flow positive properties. This is exactly what we discuss in today’s show. The first half of the show we talk about finding the right investment strategy, and in the second half we talk about finding the right property. So whether you’re a beginning investor or a seasoned pro, there’s something for you. What’s the Right Property Investment Strategy for This New Phase of the Cycle: More beginning investors tend to invest in cash flow positive properties. On the other hand, successful investors - those who’ve built a substantial asset base grow their portfolio through leveraging the capital growth of their investments. While cash flow positive properties allow you to get short term income, they will never allow you to accumulate enough equity and assets to become financially free. The few extra dollars a week in cash flow that you might receive isn’t going to make a difference in your lifestyle, but the lack of capital growth is going to hamper your ability to get the deposit for your next property.  And the lack of rental growth is going to hamper your ability to service more debts. When interest rates rise, and the will sooner rather than later, a cash flow positive property can become cash flow negative – an you lose out because you don’t have the cash flow and you don’t have the capital growth. Investors should focus on building their asset base. Asset growth first and then cash flow. You should only buy properties with a high land to asset ratio. The first phase is the accumulation phase. This is where you build your net worth and asset base. You can speed things up by manufacturing capital growth through renovations. The next phase is the transition phase. This is where you lower your loan-to-value ratio after you have built an asset base. Then eventually you can. Live off the cash machine of your investment property portfolio You have to get your investment phases in the right order. When you retire the majority of your assets will be the capital growth of your property. Setup the correct loan structures before you buy to cover shortfalls for two or three years. You need to invest in high quality “investment grade” properties. The Big Difference Between Winners and Losers: Most successful investors realize that success is a mindset. People fall into two groups those who make excuses and those who don’t. Winners stop themselves from making excuses, and they get the job done. The Right Property for This New Phase of the Cycle: We are now in for a period of lower growth for a number of years. There is no such thing as the perfect investment. Strong means you’ll get capital appreciation at wealth producing rates of return. Stable means your asset won’t fluctuate in price much. Look for an investment that is strong and stable steady cash flow. Liquidity either through selling or borrowing against the investment. Easy management. A hedge against inflation. An investment with good tax benefits. Look for properties with I’d take stability in my investments over liquidity. Put your money into a “how to” investment such as an established capital city property. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits National Property & Economic Market Update Promo Code: Podcast Some of our favourite show quotes: “I tend to see more successful investors, those who’ve built a substantial asset base, grow their portfolio through leveraging the capital growth of their investments.” Michael Yardney “If you buy in a low capital growth area, your rents won’t increase as much as properties bought in a high capital growth area.” Michael Yardney “The few extra dollars a week in cash flow that you might receive isn’t going to make a difference in your lifestyle, but the lack of capital growth is going to hamper your ability to get the deposit for your next property. The lack of rental growth is going to hamper your ability to service more debts.” Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

We all have dreams for the future, and many of those dreams require money to make them come true. So today we discuss some ways to get smart about money and help you get on track with your financial goals. Whether you are just starting out on your way to financial freedom, or you’re stuck along the way and even if you’re doing really well with your financial goals today’s show is for you. Because I chat with Mark Creedon about setting financial goals and why many Australians don’t achieve their goals and dreams and how you could. How to get on track to your future financial goals: Understand the importance of your money habits and recognise what you are doing right and what you can improve on financially. What is your plan and what is your purpose? Become smart about money. Ask why money is important to you and what having more money would mean to you. View your financial decisions through a lens with more flexibility. After finding your why, you’ll need to set some goals and design a roadmap to get you there. Honestly evaluate your starting point – how are you doing financially?   Carl Richard’s 3 guess process. Relax a bit and get going. What are your goals? When do you want to do it? Put down a number. How much money or how many properties do you need to achieve this? Know where you are beginning. Do a balance sheet. Understand your assets and liabilities. A lot of people don’t want to do a balance sheet because of emotional issues associated with their financial position. Most people have difficulty saving. On the other hand successful people can delay gratification. It’s easy to say no to spending when you have a good reason to do so. Automate your savings eg10% before you even touch your money. Mistake #1 is not putting a plan together. Many people never decide to become rich. Other people procrastinate. The big mistake of immediate gratification and spending more than you earn. Don’t get hung up on specifics and details. Give yourself permission to guess when you plan. Dump your emotional baggage around money and financial goals. Give yourself permission to move forward. It’s a lesson not a bat to beat yourself on the head. Take responsibility and move on. Don’t blame. Things change over time. You can either be right or be rich. You will face a number of roadblocks along the way. You may fail at certain things. Keep in mind it is a process and don’t give up. Links and resources: National Property & Economic Market Update Promo Code: Podcast Marc Creedon Michael Yardney Metropole Rich Habits Poor Habits Dr. Andrew Wilson Ken Raiss Carl Richards Steven Covey Some of our favourite show quotes: “Goals aren’t just dreams and wishes. You have to have an action plan behind them to convert your desire into a reality.” Michael Yardney “The reason people haven’t achieved their financial goals goes down to a deeper level of poor money habits.” Michael Yardney “The money is a means to an end it is not the end itself. The first step is to plan.” Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

We are heading for the biggest crash in Australian history according to Harry Dent. Crypto currencies are about to fall, the stock markets will crash and home values in the big cities are about to halve. Is this really true? Today, I speak to Harry Dent to find out what he really thinks. I also speak to Dr. Andrew Wilson, and give you my thoughts on what’s ahead. Harry Dent Says Australia’s Property Bubble Will Burst: Here are some of the things Harry Dent said: What’s ahead is a global crisis of the developed world -leading to a worse depression than the Great Depression of the 1930's. Bubbles cause an economic reset, but once that’s over the markets can boom again. The economies of many countries in the world are slowing. Demographics will tell you when the different generations are going to spend money and when the slow down China has the worst bubble in the world. They are also Australia’s biggest trading partner. Australia’s real estate prices are the second highest (compared to income) in the world. We have created an artificial bubble because so much money has been injected into the system by governments. Bubbles build predictably, what’s harder to predict is when the bubble is going to burst. Stock bubbles crash twice as fast as they build. When bubbles burst they burst by 70, 80, or 90%. Half of this comes in the first 2 ½ months. Bitcoin has been leading the stock market crash by about two months. Businesses are better off leasing rather than owning their premises, unless it’s a totally strategic move to own the business. You should take some equity from your real estate and short the stock market to hedge against downturns. A typical real estate bubble is six years up and then six years down because people don’t sell immediately when the bubble crashes. Values aren’t going to crash as hard in Australia as in other countries. Things that will cause the bubble to burst include when US real estate starts to go down and bitcoin crashes. The high-end property markets are what seem to be cracking this time around. The most overpriced markets in the US are San Francisco and Los Angeles. Once the bubble bursts, Australia is best positioned of all the developed countries to recover because of its proximity toAsia Harry’s new book has a whole new bubble model that looks at more than demographics. Michael’s Take on What Is Going On: Investopedia defines it as:“A run-up in housing prices fuelled by demand, speculation and the belief that recent history is an infallible forecast of the future. Housing bubbles usually start with an increase in demand in the face of limited supply which takes a relatively long period of time to replenish and increase. Speculators enter the market, believing that profits can be made through short-term buying and selling. This further drives demand. At some point, demand decreases or stagnates at the same time supply increases, resulting in a sharp drop in prices - and the bubble bursts.” For mine, bubbles are also accompanied by easing of lending criteria so that loans are easily obtained leading to rapid rises in housing credit, with many people who can’t really afford to take on loans speculating and overcommitting themselves. Do we have some of the features of a bubble at the moment? Yes. Are we in a bubble? The answer is no.  Property values are not about to collapse. Rising house prices on their own do not cause a bubble. The rise has to be followed with an increase in, speculation, borrowing and leveraging. This makes the market fragile and unstable. If anything, our banking system has become more stable than it has been for decades. With increased regulations by APRA and the RBA We’re heading into this stage of the property cycle in the best shape that we’ve been in in a long time. Most Australian economist do not believe that the Australian market is headed for a crash. For the markets to crash, we need desperate sellers who are willing to give their property away for nothing, with no one there to buy them. We need one or more of these things to occur for a property crash to happen: A major depression, Massive unemployment, Exceedingly high interest rates, and Too many properties available. Dr Andrew Wilson Bursts Dent’s Bubble: Here's what Andrew had to say: Housing prices are NOT going to drop 40% in value. We probably shouldn’t even be responding to these outrageous predictions. It’s very unlikely that we’ll see any house prices lowering in Melbourne and Sydney this year. Demand remains strong in both of these markets. New household formation is about 1,500 per week in Sydney.  This translates into the need for  75,000 new dwellings each year. Also 8% fewer homes were approved for building this year in Sydney. The key catalyst for the housing market are interest rates. Currently, they are going nowhere. We have the near lowest income growth that we’ve ever had. Without income growth and low interest rates there is no capacity to push prices higher. A challenge for policymakers is that  middle and low income workers expenses are rising faster than their incomes. High debt and low interest rates has constrained property price growth. It’s been over seven years since Australia has had an increase in interest rates. Interest rates should remain flat for at least another year. We have a resilient robust market. The banks are much healthier now than they were two years ago or when we had the GFC. Links and resources: Metropol Property Strategists National Property Market & Economic Updates Promo Code: Podcast Harry Dent Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage Dr. Andrew Wilson My Housing Market APRA Quotes: “As an investor, I believe it’s important to listen to others rather than to just move forward with confirmation bias.” Michael Yardney “Debt bubbles cause financial asset bubbles and at some point we have to have a reset.” Harry Dent “We’re going to see a consolidation of price growth in all of the capital city markets. This is a product of flat interest rates.” Dr. Andrew Wilson Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Today, we discuss the top 5 mistakes that property investors make, those that have nothing to do with buying the wrong property with Stuart Wemyss director of ProSolutions Private Clients. If you want to build wealth through investing in property, you’ll learn something from the mistakes that others have made so that you don’t make the same ones. I’ve talked and written a lot about how to choose the right property - an “investment grade property.”   So let’s assume you have found the right property. There are still many things that you can get wrong. Today’s episode should help you avoid some of those mistakes. The top 5 mistakes that property investors make: Not undertaking proactive tax planning before investing in property means you most likely pay a lot more tax than necessary (consider income tax, CGT and land tax). Not proactively managing your borrowing capacity and bank valuations which means you hit a “brick wall” and cannot continue to grow your investment portfolio. Wasting time investing in the wrong assets or adopting the wrong investment strategy that are fundamentally flawed and were never going to work. Trying to time the market. Waiting for “signs” or “indications” that it’s safe to invest now (these will never appear). Worrying about inconsequential issues and not taking a long term view. Not starting with the end in mind i.e. not understanding how you invest today will impact on your ability to achieve your longer term lifestyle and financial goals. You must work out if your proposed action will help or hinder your ability to achieve your longer term goals. Links and resources: Michael Yardney Metropole National Property & Economic Market Update Promo Code: Podcast Stuart Wemyss director ProSolutions Private Clients Episode 1: What Makes an Investment Grade Property | Become the Pilot of Your Life, Not the Passenger Quotes: “You shouldn’t be buying property for tax savings. Tax savings are just the cream on top.” Michael Yardney “You should get some structuring advice before you buy your property. Once you have purchased your property, it will be a bit too hard and expensive to change.” Michael Yardney “It’s always a difficult balancing act when you first start off because your priorities and finances take precedent, but you should always take a long-term view.” Michael Yardney Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes. You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.