Property Investment, Success & Money | The Michael Yardney Podcast

Today, I am going to answering some of your questions. The first one is about how to predict property prices. Wouldn’t that be nice to know? We’re also going to talk about how to invest on a budget. Everyone has a budget of some type. Ahmad Imam is going to answer this question for us. In my mindset moment, I explain why it’s important for you to fail. Don’t be put off by this topic because the end will be worth it. How to Predict Property Prices We can’t really predict property prices, but we can try to find properties that will outperform using the three Ps: people, purchasing power, and places. First time buyers and investors are generally at the lower end of the market. Middle markets are changeover buyers or people downgrading. Upper end of the market are more prosperous buyers driven by the business cycle. It’s important to understand the different types of property buyers: Purchasing power has been high until recently. Now purchasing power will be driven by the ability to get finance. People move where there are jobs and higher salaries give them more purchasing power. Mindset Message: Why you should fail. No matter how successful people are, they all make mistakes. The game is won by losers. If you don’t fail at something you aren’t doing enough. The trick is to keep trying and manage failure If you want to be successful, you will first have to fail. Investing on a Budget with Ahmad Imam Affordability is at the top of everyone’s concern. Your budget is set at the bank’s. Location is in your control and is critical. 80% of property performance is due to location. Don’t compromise on this Your property must be investment grade. Biggest mistake is to buy based on affordability. Land is important, but not all land is created equal. Links and resources: Michael Yardney Metropole Ahmad Imam Rich Habits Poor Habits Favourite quotes from the show: “Examine almost any shiny success and on the flip side you are going to find grimy failure.” Michael Yardney “The truth is success scares people.” Michael Yardney “Property values are driven by the three Ps: people, purchasing power, and places.” 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.

In today's podcast I answer the question of who should you ask for property investment advice. With so many mixed messages and vested interests, who can you really trust. In my mindset message I’ll be sharing messages from one of my mentors Jim Rohn. And Ken Raiss the Director of Metropole Wealth Advisory answers the question of whether you can claim negative gearing when you own a property in a trust. Takeaways:   Who Do You Ask for Property Investment Advice? Options that may not be the best: Many people ask no one  - which might leave knowledge gaps. Friends and family may have good intentions, but may not be experts. Real estate agents work for the vendor and most don’t own any investment properties. Mortgage brokers may not understand the market enough to advise you on what an investment grade property is. Accountants don’t have an intimate knowledge of the property market. Financial planners are licensed to sell financial products, but most aren’t able to advise on real estate. Property marketers are sales people selling a “product”. Invest seminars and workshops. Ask if the person conducting the event is an expert and how have they made their money. Many people who claim to be mentors can be property sellers in disguise. Be careful who you choose.   Buyers agents are usually just order takers and don’t take into account your long term strategy. Better options: Find a  trusted advisor who can help you devise a strategy that sits behind your property investment decisions. Following the teachings and systems of those that have already achieved what you want to achieve. A trusted advisor tailors their recommendations to your personal circumstances and warns you of the possible risks. The first question you should ask is “how are you getting paid.” Experience takes years to acquire and comes at a cost.     Mindset Message: Two choices we have in life from Jim Rohn   Make it less than we have the capacity to be. This can lead to a life of apprehension Become all we can possibly become and do as much as we possibly can.   Ken Raiss: Can you claim negative gearing when you own a property in a trust?   Negative gearing is not a property investment strategy. It is a finance situation at a moment in time. Some trusts allow you to take advantage of negative gearing, but the ATO puts restrictions on these. Other trusts will let you carry the loss foreword for future years. There is no right or wrong answer - the type of trust you should use depends on your individual circumstances and you need specialist advice. Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Jim Rohn Ken Raiss Metropole Wealth Advisory Episode 1: What Makes an Investment Grade Property Favourite quotes from this episode: “If they are not financial experts, don’t ask them for financial advice.” Michael Yardney “If you are interested in getting proper financial advice, you just need to find the right advisor who understands all aspects of investment.” Michael Yardney “Most wealthy people have trusted advisors and are prepared to pay for them in all areas of their lives.” 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.

In today’s show I'm going to talk about which properties to avoid if you want to be a successful investor. While it’s important to understand what properties make good investments, it’s equally important to understand which properties you should not buy. I’m also going to share a number of Wealth Accelerators the rich use to become richer in my mindset moment. These are things that you may not have thought of, but are important for property investing, life and success. And  as I answer a listener’s question “Is possible to buy 10 properties in 10 years?” I’ll share my thoughts on property accumulation. Know Which Properties to Avoid: Properties you shouldn’t buy are properties that banks don’t like and on which they’ll lend a loan-to-value ratio. If the banks are wary of a property see it as a warning sign. Services Apartments leave you dependent on one particular operator and they have a limited resale market. Department of Defense Housing has a long lease and no ongoing maintenance, but they have expensive property management and other fees. And they’re not located in investment grade locations. Small units, studio apartments and student accommodations - an apartment needs a flexible floor plan with at least 40 square meters and preferably 50 sq meters. Off the plan large apartment developments - they are in oversupply. Poor locations or even the worst part of a good street. Properties with no or limited parking Apartments in suboptimal locations. Avoid main roads and secondary locations. Rental guarantees are there because that is the only way the seller can find a buyer. Holiday locations. It’s better to build your asset base in sound investment grade locations before buying a getaway property. Mining towns – enough said.   Mindset Message: Wealth Accelerators: Leveraging and using other people’s money in a strategic way. Using other people’s time. Understanding how to legally use the tax laws to your benefit. Using the right ownership structures - own nothing in your own name. Having a sound network and building a great team around you. Having mentors and belonging to mastermind groups. Having a wealthy mindset. Your reality is what you think is real. Your perception is your reality. Owning the right assets. Buying 10 Properties in 10 Years It doesn’t matter how many properties you own – it’s the size of your asset base and how hard your money works for you. Don’t focus on the number of properties - focus on the size of your asset base. Accumulation stage - build a portfolio of properties that outperform the averages Lowering your loan-to-value ratio. Live of your cash machine Understand the 3 phases of wealth creation:- Links and resources: Episode 1: What Makes an Investment Grade Property Episode 3: How Many Properties Do You Need to Retire Michael Yardney’s Mentorship Program Metropole Property Strategists Rich Habits Poor Habits Favourite Quotes from this episode: “I often see investors exhibit confirmation bias  - this is where people just want confirmation of the decision they have already made.” Michael Yardney “Investors buy with their calculators. I like to sell to owner/operators who buy with their hearts.” Michael Yardney “Properties need to be liquid. You need to be able to resale or refinance. ” 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.

This week we learn some investment lessons from the most successful investor in the world. In my mindset moment, I’m going to share some quotes from Warren Buffett. My special guest today is Ken Raiss, director of Metropole Wealth Advisory. Ken answers a question about the best structures for owning an investment property. Learn to Invest From the Most Successful Investor in the World Warren Buffet's Philosophy includes: Adhering to a proven investment strategy. Being a counter cycle investor. Specialize not diversify. Being a value investor. Take a long term view and invest for the long term. Don’t invest in anything you don’t understand. Manage your risks. Bad times will come and go with surprising frequency. Mindset Message: Warren Buffett Quotes The difference between successful people and really successful people is that really successful people say no to almost everything. What we learn from history is that most people don’t learn from history. Diversification is protection against ignorance. You only have to do a few things right in your life as long as you don’t do too many things wrong. What are the best structures for owning an investment property: Ken Raiss Decide your structure well before you buy Buy a family home in your personal name For investments ask what you expect out of it Trusts can be an option depending on what you want A self-managed super fund is a form of trust with tax benefits later on Ask what your primary source of income is when deciding tax advantages for the type of trust you choose. Property trusts for personal and discretionary trusts for businesses Trusts with family lineage clauses Testamentary trust set up after death as part of a will Specific advice for your particular circumstances are ideal Links and resources: Michael Yardney Metropole Episode 1 Why It Is Important to Buy Investment Grade Property Warren Buffett Metropole Wealth Advisory Ken Raiss Property Update Quotes from this episode: “If you focus on sound financial strategies with a long-term, big picture goal, you will be able to gain financial independence.” Michael Yardney “Learn the habits of people who are really successful.” Michael Yardney “To become an expert, you have to do the same thing 100 times not 100 things once.” 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.

Boy have things changed in the property markets over the year. Growth is stalling, so what's ahead for the year? Today’s show is going to answer this question plus more. It is a special edition of my weekly show and I'll chat with four experts who share their “on the ground” knowledge as we do our Spring State by State property market update. Today’s discussion includes: What’s really going on in Australia’s major capital city property markets We answer the question: Is the market consolidating before another rise or have we reached a peak? We show you how property prices don’t always go up. We explain how we are at a time of increased risk and volatility. Ken Raiss, Director of Metropole Wealth Advisory – The Economic Context The global economy is improving and the labor market is strong. Low wage growth is restraining spending. China is growing at a reasonable pace driven by infrastructure and property spending. China has a moratorium on sending money overseas. The US has one of the stronger economies and is slowly raising interest rates. The Australian economy is going through a bit of a rough patch, but improving. We are seeing low wage growth and higher prices particularly in energy and health. Business confidence is high, but this has not translated into hiring new staff or increasing wages. Interest rates aren’t expected to rise at least in the second half of 2018. People pulling money out of their savings has put a damper on things. Kate Forbes National Director of Property Strategy – Metropole Melbourne Melbourne has been the best performing property market over the last 20 years. Population growth and job creation have been strong fundamental drivers. Migrants have been coming to Melbourne for all the permanent jobs creates by the strong economy. It’s not too late to get into the market, but correct property selection is critical – it needs to be an investment grade property . The location of the property is paramount. Ahmad Imam Senior Property Strategist – Metropole Sydney Sydney property prices have grown 13% over the last year, but the markets are fragmented. Property price growth has been stronger in the inner ring suburbs. Capital gains in those pockets that had strong growth are being weighted down by affordability constraints. The lower end of the market will benefit from first home buyer incentives. The growth has been driven by strong population growth and skilled migration. Property is also a popular asset class for baby boomers leading up to retirement. It’s not too late to buy, but now more than ever you have to buy an A grade asset. Strongest and most stable growth in existing and established apartments. Small to medium density boutique style complexes.   There is also strong growth in townhouses and detached houses at the upper end. Brett Warren Senior Property Strategist – Metropole Brisbane Brisbane has grown about 3%. The housing market has been performing strongly. Brisbane lost job growth and the population growth struggled. The population growth and job growth are picking up. There is also infrastructure expansion which is a positive for investors and homeowners. Better performing areas have fundamental drivers of good infrastructure, employment, walkability, and good schools. Be careful of buying in the Sunshine and Gold Coasts. Investment opportunities in the good pockets and employment hubs. The Other Capital Cities Canberra home values have increased about 8% over the last year. Darwin values are down and likely to keep falling a little. Values are 18.6% lower than its peak. This is a market best avoided. Property values in Hobart increased by 13.6% over the last 12 months. The economy is also starting to pick up. There has been short term growth, but very few long term growth drivers. Perth markets are still languishing with significant over supply. Dwelling values have fallen. I’m not convinced that this is a good place for counter cyclical investing. Adelaide markets are very fragmented. Property values have increased, but there are very few long term growth drivers. There are better places to invest. Links and resources: Michael Yardney Metropole Ken Raiss Kate Forbes Ahmad Imam Brett Warren APRA Quotes: “I’m an investor not a speculator.” Michael Yardney “The vast majority of our economy growth is in the capital cities and that’s where 80% of our population live.” Michael Yardney “I would avoid investing in areas that aren’t capital cities as the gap between our large centers of economic growth and our regional markets is going to keep widening .” 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.

Today, I am handing over the show to you, the listener, as I answer your questions about property investment. I talk about how to acquire multiple properties in today’s tight lending environment, market timing, and pros and cons of cash flow versus capital growth in properties. In my mindset moment, I am going to share with you four quotes from Richard Branson that have inspired me and just might inspire you too.   Today’s discussion includes: The importance of timing (or not) when investing in real estate How to grow a 10 property portfolio in the current finance market. The pro's and cons of cash flow positive properties The importance of buying “investment grade” properties The 3 big drivers of property values: People (household formation), Purchasing Power, and Supply & Demand My “top down” approach to property investing How the best time to buy is when you are ready to buy The size of your asset base and its performance is more important than the number of properties you own While growing your asset base takes a few decades having the right mentors can help shortcut the process Mindset Message: Four Quotes from Richard Branson “Don’t be embarrassed by your failures. Learn from them and start again.” “Criticism is a poor reflection on the one who criticizes.” “True success should be measured by how happy you are.” “Find something that you enjoy and have fun doing.” Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Richard Branson Episode 1 Buying Investment Grade Properties Episode 2 Is it too late to buy this property cycle?   Quotes: “Look for locations within capital cities where people have a higher disposable income.” Michael Yardney “Buy when you can afford to buy, and when you are ready to buy.” Michael Yardney “It takes the average property investor 30 years to become financially independent.” 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.

In this special podcast 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 Michael Yardney's Property Update Blog

In today’s show I'll be discussing 7 pearls of ancient wisdom for success in property investment and life. Let's see what we can learn from Confucius and his friends. In my motivational moment, I share some great concepts from Steve Jobs and Winston Churchill. There is so much we can learn from these experts that can be applied to life, success, and even investing. I finish off with Pete Wargent who explains to us why we can’t depend on the Government to look after us in the future. We can do smart things as a property investor to secure our own futures. 1. 7 Pearls of Ancient Wisdom for Success Thoughts lead to feelings. Feelings lead to actions. Actions lead to results. Recognize where you need help and don’t be afraid to ask for help. Seek out mentors that have achieved the goals you aspire to. Review your property portfolio regularly. Get rid of losers and move foreword. Insure yourself and your assets and maintain a financial buffer. The process takes time. It’s never too late to get into the property game. 2. Mindset Message: Developing rich habits by thinking like successful people. Steve Jobs and Winston Churchill teach us about: Having perseverance and letting your vision pull you through. Having a positive passion project. Having the courage to continue is what counts. 3. Why we can’t depend of the Government to look after us in the future. Australian’s are living longer, often 20 – 30 years after retirement. The typical superannuation fund balance will not be sufficient for your “golden years.” Australians need to invest and build an asset base using the power of leverage, time and compound growth It will take around 15 years to build a sufficient asset base for financial freedom, but possibly a further 10 years if you do what the average property investor does and invest the wrong way. Consider investing in different asset classes including shares and properties We all have a “natural bias” towards certain investment classes The most important thing is to get started Speed things up by getting the right mentors and finding a proven strategy then formulate a plan Start investing when you are young because time and leverage are on your side Links and resources: Pete Wargent’s seminar in Sydney  - Money for Life Michael Yardney Metropole Rich Habits Poor Habits Michael Yardney Mentorship Program Pete Wargent Pete Wargent on Property Update Property Update Stephen Koukoulas Quotes: “Your level of wealth will seldom exceed your own personal development.” Michael Yardney “One of the biggest mistakes that new investors make is thinking that they can do everything themselves.” Michael Yardney “If you are the smartest person in the room, you are in the wrong room.” 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.

Today I share 9 reasons not to invest in property, and in my mindset moment, I’m going to be a bit of a thorn in your side. Then my guest, Pete Wargent gives us some predictions for the future of property. 9 reasons not to invest in property You should NOT get involved in real estate investing if you’re: Looking for tax savings and ignoring property investment fundamentals Fear of missing out or FOMO Wanting to get rich quick Not understanding how investment property works If you are not financially fluent in budgeting, spending, and handling debt Looking for your property to do multiple things like be a holiday home or retirement home as well as an investment Your finances are not in order If you can’t afford an investment grade property Trying to time the market or find the next hot spot Mindset Message: You are not your fears, but you create your fears. Pull out the thorn and face your fears, so that they never bother you again. Pete Wargent’s prediction for the future of property Pete explains where we should be investing based on the following likely trends over the next decade: Falling homeownership rates More Asian migration and overseas investment More high-rise construction and apartments Jobs in “service industries” are becoming more prevalent All this means that real estate investors will need to get smarter in their decisions Links and resources: Michael Yardney Metropole Rich Habits Poor Habits Pete Wargent’s blogs on Property Update Pete Wargent Pete Wargent on Twitter @PeteWargent The Untethered Soul: The Journey Beyond Yourself Pete Wargent on Property Update Quotes: “Buying property to save on taxes can lead to ignoring the fundamentals of property investing.” Michael Yardney   “Investing based on emotion leads to bad judgement.” Michael Yardney   “Property investment is a long-term endeavor that usually takes about 30 years to reach financial independence.” 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.

Everybody wants to know what is ahead in the world of real estate, but I was recently asked about the biggest changes I have seen looking back over the last decade. Today I share these, and then I look forward to my 9 property predictions for the next decade.   In my mindset minute, I talk about what I would do differently if I started over again and ways to learn smarter and faster and “getting a bigger cup”. Today’s discussion includes: In 2007, Sydney was the most expensive city with a median price of $500,000 Perth was the second most expensive capital city About 70% of new buildings were being built on the fringes of capital cities rather than in the CBD I had just written my first book which became a classic - How To Grow A Multi-Million Dollar Property Portfolio - in your spare time We were on the cusp of the biggest economic downturn in almost a century and nobody realized. Yet strategic investors stayed the course, didn’t panic and look how well they’ve done Back then I spoke about holding residential real estate for the long term and nothing has really changed No one foresaw the 3 big drivers of the property markets over the next decade: Significantly lower interest rates Strong population growth Our mining boom led by the surging Chinese economy. 9 predictions for property in the next decade: We’re in for a period of lower capital growth We’re also in an era of lower interest rates There will be significant growth in our service industries Our property markets will become more fragmented More people are going to live in apartments There will be a bust in the inner city apartment markets in some areas We’ll have significant population growth There will be a lot more white noise Always expect the unexpected Mindset Message: What would I do differently if I started investing all over again? I would spend more time educating myself. I would learn from others by modeling the most successful people and upgrading my “programming.” Links and resources: Michael Yardney Metropole How To Grow A Multi-Million Dollar Property Portfolio - in your spare time Unlimited Power by Tony Robbins Rich Habits Poor Habits Quotes: “You can’t predict the future by looking at the past.” Michael Yardney “I now look into the future not the past. I focus on where future growth is likely to occur.” Michael Yardney “Learn from mentors and others because learning from your mistakes can be slow and demoralizing.” 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.