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Property prices have been climbing at a breathtaking pace in 2021. This has been good news for homeowners but heartbreaking for house hunters. At the same time, there have been mixed messages in the media about what’s ahead. Of course, there’s always the Negative Nellies wanting to tell anyone who is prepared to listen to them the market is about to crash, but other more solid commentators are suggesting our property market is slowing down. And I agree, I believe the pace of capital gains has peaked, but I’m not suggesting home values are about to dip, far from it. Rather I believe we’ve moved from a peak rate of growth to a pace of capital gain that will be more sustainable. I was recently interviewed by Jarrod Mahon for his Perth Property Insiders podcast, and because the questions he asked me were more general in nature, rather than related to Perth I asked his permission to replay the interview with you as I hope you’ll get benefits from my answers to his questions. You’ll hear me answers questions like how much more life is left in the property cycle and you’ll be pleased to know that it’s not too late to be early for this property cycle – I’ll explain how long I believe is left in this cycle and where the opportunities lie. Topics I discussed with Jarrod Mahon Last year when many of the bank economists predicted a 15%, 20%, 30% fall in property values I disagreed with them I’m on record in March and April last year suggesting that well-located A-grade homes and investment-grade properties would only fall about 5% in value and secondary properties would fall close to 10% in value and I got that right. I also called a turning point in our property markets in October last year when we could see on the ground what was happening long before it showed up in the official statistics. However, I didn’t really expect the market to rebound so quickly. All the property markets are stronger than they were 12 months ago. In the last three months, Melbourne’s grown closer to 6%. We’re in a cycle of upgrading Based on affordability I expect 20- 25% growth this cycle And while this will be a general increase in value around the Australian property market some areas are going to outperform others, as they always do and a lot of this will have to do with demographic High-end properties will outperform, and capital cities will outperform the regions In cities, the apartment market will languish While normally investors make up around 30% of our property markets currently, they’re making up around 20% of all property purchases. This will increase and as more Australians become comfortable with their financial situation and hear how well the property markets are performing, we will have a whole new wave of property investors, as has happened every other cycle. The unfortunate thing is that most investors will fail – they will not get past the first investment property and if history repeats itself 50% will sell up the properties within the first five years. Affordability and the deposit gap will slow growth Apra and the RBA said they are not going to interfere as long as lending remains responsible. It’s unlikely interest rates are going to go up, but we could see. It’s not really population growth that drives our property markets and more demographics which in part includes how many of us there are but also how we want to live and where we want to live. Population growth per se does not cross property price growth family formation does – my daughter just had a baby but doesn’t need any extra house. The return of cashed-up ex-pats is having to property price growth. It has been estimated that hundreds of thousands of people return to Australia over the last year, with many of them coming from cities that have more expensive property markets. Many are returning with plenty of Real Estate dollars behind them off in a stronger currency is the Australian dollar which supercharges their buying power even more. Ex-pats from expensive cities like London, Hong Kong, and New York often don’t consider our property prices unaffordable I’m not happy to pay whatever is necessary to secure a prestigious property in the desired location Immigrants often rent for a while because they’re not sure where to live and this is definitely affected our rental markets, particularly in the big capital cities. Immigrants don’t know where to buy – all they know is there a place of employment or maybe the university, so they are often start as tenants. Australia has a business plan to increase our population to 40,000,000 people by 2050. We plan to get to 30,000,000 people by 2030 – that’s unlikely to happen – more likely to be 29 million. But that means if you get into the property market today, you’re ahead of 3 ½ million other people are going to be buying property in the next 8 to 9 years There is no doubt that people move from one location to another because of affordability, but more important than that is jobs. The ability to work, live, and play all within 20 minutes’ reach is the new gold standard desirable lifestyle. Imagine being able to carry out your daily activities within a 20-minute walk from home. Resources:  Get a range of my eBooks and reports as my gift at www.PodcastBonus.com.au Jarrod Mahon Investor’s Edge and the Perth Property Insiders Podcast As our markets move forward why not get the team at Metropole to build you a personalised   Strategic Property Plan – this will help both beginning and experienced investors. Shownotes plus more here: It’s not too late to be early this property cycle with Jarrad Mahon Some of our favorite quotes from the show: “It really has been just the huge change in consumer confidence that I don’t think anyone really expected.” – Michael Yardney “I say this is a cycle of upgraders, and it’s happening at all levels.” – Michael Yardney “Clarity is knowing exactly what you want in life, and what you need to do to get what you want.” –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

Today, I’d like to share with you my top insights into creating accelerated wealth. Now, the show is a little bit different, because it’s actually the audio of a webinar I conducted with my friend Louise Bedford who asked me to share with her audience my insights into creating wealth in this new business, property, and economic cycle. It came at a great time because I was preparing the curriculum for Wealth Retreat this year that we’ll be holding on the Gold Coast in June, and I was reviewing my notes from previous years and speaking with previous attendees. I was blown away by the feedback as previous attendees explained how the Wealth Retreat changed the way they handled their investments, their business and their lives. That’s high praise from people who are already very successful. So, I hope that sharing my insights will also benefit you and help you take advantage of the opportunities that lie in front of us in 2021. My insights into wealth creation The first step along the investment path is educating yourself. It’s what I still do today to keep growing and it’s what all successful investors do. Experience is an expensive teacher. I recognised that we all have personal ceilings of achievement that are based on our current thoughts and habits. The answer is to grow yourself into a bigger cup so that you attract and keep more wealth. You do this by upgrading your wealth programming – the way you think and react about money. We all need to learn from mistakes – this helps you get it right and move forward. The only question is, whose mistakes? Yours or those of the successful investors who have already achieved what you want to achieve? Remember, building wealth all on your own is not only hard work, but it’s slower and riskier. Alone you are vulnerable and will never reach your fullest potential. But when you connect with the right mastermind group, the chemistry will literally propel you to heights you never dreamed possible. The biggest obstacles we need to overcome to become financially free Obstacle #1: Isolation: It’s hard to build wealth on your own You see…alone you are vulnerable. You will never reach your fullest potential. But when you connect with the right people, a whole new set of options you never dreamed possible opens up to you. In fact, one of the main reasons people attend Wealth Retreat is to have an instant peer group of movers and shakers. Obstacle #2: Fear One of the greatest obstacles to building financial freedom is fear. And with all the mixed messages in the press at the moment with concerns about, the after-effects of the Corona Virus on our economy, what will happen when JobKeeper ends, growing social unrest in Australia – not just overseas, the challenges with obtaining finance and talk of a property bubble developing, many of us are more fearful than ever. This fear can be taken many forms, but the big 4 fears I come across are: Fear of failure – this is especially prevalent. Fear of debt – most of us have been taught that debt is bad and not to take on more debt. Strategic investors recognise that debt in itself is not necessarily bad, rather it’s not being able to repay your debts that’s a problem. Fear of success – Interestingly, some beginning investors put off their investment decisions because they are haunted by a fear of success. While this may initially seem strange, this fear generally stems from a feeling of unworthiness, where people convince themselves that they are undeserving of wealth or wanting to accumulate wealth makes them a bad person. Fear of the unknown – Who wants to go into a dark room? Who wants to go to a party where you don’t know anyone? Who is not nervous about buying their first investment property? Whenever the outcome is uncertain, fear rears its ugly head. Another fear I have commonly seen is the fear to follow your passion. Obstacle #3: Uncertainty The third major obstacle I’ve observed our Wealth Retreat graduates had to overcome was confusion. They had heard so much conflicting financial advice over the years that they quite simply didn’t know which direction to move in. How to overcome these obstacles One of the most valuable benefits of Wealth Retreat for attendees was that it simplified the complex world of wealth building and business planning so that they had a crystal clear, specifically defined plan of action to pursue their personal wealth building. Alone you are vulnerable; connected we are strong It really struck me how easy it is to fall back into old habits and let negative outside influences dramatically impact our mindset and financial results when we are on our own. We cannot be our best selves in isolation from the world. We need other people. The key is making sure we’re spending time with people who inspire, empower, and encourage us. Your peer group is contagious One of the things that struck me on the first night at Wealth Retreat, when we all got together for a special surprise event (the details of which I can’t reveal here, otherwise it would spoil the surprise for the attendees) was how quickly people connected with each other. It’s ultimately up to you to find and create the peer group that will help you live the life you want to live. After a “Loss” we tend to go back to what we knew One of the most important insights that I want to share is that when most people suffer a “loss” financially, their natural tendency is to pull back and isolate. Some are fearful… others embarrassed… But isolation only makes things worse. You need to accurately assess the situation, learn your lessons, and move forward. Beating yourself up is of no benefit. This is why your peer group and mastermind team are so essential. Your Mastermind Team Apart from the opportunity for participants at Wealth Retreat 2021 to have one on one sessions with our expert faculty, one of the exciting parts of Wealth Retreat this year will be the small group breakout sessions. This is a masterminding technique where you ask a focused power question to your mastermind group and they have time to brainstorm as many possible answers to your question as possible. Resources: Join us at Wealth Retreat 2021 – find out all about it here Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a range of my ebooks here:  www.Podcastbonus.com.au Shownotes plus notes here: [Podcast] My Top Insights into Accelerated Wealth Creation with Louise Bedford Some of our favourite quotes from the show: “If you’re in the room with a group of already successful movers and shakers, it makes you think different and you come out different.” – Michael Yardney “Isolation is one of the largest obstacles to building wealth.” – Michael Yardney “People need to convince themselves that they’re deserving of wealth.” – 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  

Perhaps it’s a reflection of how old I am, but as I keep seeing the stories in the media about rapidly rising house prices, I simply think: here we go again. There are already those out there telling us we are in the housing bubble that’s going to crash. Then there are others who are warning us how the Reserve Bank or APRA are going to interfere and slow things down. And then the banks that only 12 months ago forecast house prices would fall 10, 15 or 20 percent are now suggesting house prices could rise by 10, 15, or even 20 percent in this year alone in some areas. While these periods of rapid house price rise essentially come down to the forces of supply and demand, each sprinkled with varying quantities of irrational exuberance, the precise forces behind each of the housing booms I’ve invested in over the last almost 50 years are not the same. I remember just after I bought my first investment property early 1970s inflation boomed when the Whitlam Labour government came in. At that time interest rates were much higher than they are now. Inflation had the effect of reducing the real value of mortgages, but it was also a time of strong wage growth. Then I remember the great property boom of the late 1980s which was one of the factors that led to the recession we had to have in the early ’90s and particularly remember the boom in the early 2000s, when investor demand was a significant factor driving up house prices, in part because of the changes made to the capital gains tax regime at the time. Looking at the current housing boom, there are some very interesting features that contrast with previous cycles. The first is that population growth is currently very low, in fact, net immigration actually caused Australia’s total population to fall over the past 12 months. That’s very different from previous booms — particularly in the middle of the last decade — where strong immigration was an important driver of rising house prices. Another interesting difference is the relative absence of investors in the current housing market compared with owner-occupiers. This is reflected in the much stronger demand for standalone houses rather than apartments. In February this year investors only made up about 20% of all home loans while traditionally this is closer to 30%. And it’s not just local investors that are missing. There is also the absence of foreign investors. During the last boom Asian investors, particularly from China were an important force driving up property prices and buying many of the high-rise apartments being built in our CBD. They are nowhere to be seen this time around. So far, a significant factor of this property boom has been the presence of first homebuyers assisted by various federal and state government initiatives including the homebuilder program, the first home loan deposit scheme, and various deputy concessions. While our banks are keen to lend to First Home Buyers, I’ve heard that the Bank of Mum and Dad is now is the fifth largest lending institution in Australia. Here homeowning parents who sitting on significant equity in their property help their children get into the housing market either with gifts, loans or they assist by guaranteeing their loans. So how can you make the most of this property cycle? Is the Reserve Bank going to interfere and raise interest rates? Will APRA slow down lending as it has in the past? These are all questions I’m going to ask of my regular podcast guest, financial adviser Stuart Wemyss.   Truths about the housing boom Our property markets have been surging this year with double-digit growth in sight for all our capital cities. And now that more Australians feel secure about our economy in general, and their jobs in particular, this will only place more impetus under our markets. And it’s clear that FOMO (fear of missing out) when homebuyers and investors are scared the market is running away from them is driving many decisions. Buyers feel they must get into the market and this is showing with even secondary properties selling well above their vendor’s expectations. Normally at the beginning of the property cycle, there is a flight to quality – people remember the type of properties that held their values well during the downturn and avoid secondary properties. But currently, I’m seeing some home buyers so worried the market is going to pass them by that they are compromising their selection criteria just to get into this market. Unfortunately, we’ve seen how you end up when the market eventually slows down, and it’s not always a pretty sight. So what’s ahead for the markets this year and how can you take advantage of our current property boom without getting burned? That’s the topic of my discussion today with independent financial adviser Stuart Wemyss. Will the RBA increase the cash rate? The lowest 40% of income earners have been affected by COVID-19 the most. An increase in interest rate would adversely affect low-income owners when they could least afford it. An increase in interest rates would be bad news for the federal and state government budget deficits. The federal government’s total borrowings attempt to reach $1 trillion meaning 1% of price interest rates would cost the government an additional $10 billion a year – not an attractive prospect. Will APRA introduce macroprudential controls? Chairman Wayne Buyers said APRA’s primary responsibility is financial stability, not soaring house prices, and it is not seeing activity right now that would compel it to intervene. However, more commentators are suggesting there will be a role for changes to potential lending standards. How might this be done? Increase interest rates for investor mortgages and leave owner-occupier rates unchanged (investor mortgage rates are already 0.4-0.8 percent higher than owner-occupier rates). Limit the maximum loan to value ratio (LVR) for investment loans. At the moment, investors can borrow up to 90 percent of a property’s value, meaning they only need a 10 percent deposit plus costs. The government could reduce these LVR limits, like the Reserve Bank of New Zealand did last month. Increase the benchmark interest rates for investors. A benchmark interest rate is used when a lender calculates your borrowing capacity. It provides a buffer to provide for future interest rate increases. The higher the benchmark interest rate, the lower your borrowing capacity. While a new round of macro-prudential policies is looking increasingly a matter of when, not if, as I see it, the catalyst for such a policy intervention is more likely to be based on a worsening in the quality of lending standards or increase in mortgage-related household debt rather than as a response to heat in the housing market. Tighter credit conditions would probably have an immediate dampening effect on housing market activity while continuing to let record-low interest rates support the ongoing economic recovery. It’s very likely that the government (through APRA) will tighten borrowings criteria for investors sometime over the next six to 18 months. Of course, this is dependent on property prices. If price rises are considered sustainable, borrowing rules do not need to change. For property investors, it is time to lock in access to as much capital as possible over the next six months. Depending on the type and location of your property, I would probably be inclined to wait for one to two months before getting your properties revalued. This will allow for some more comparable sales to occur. Then, around April or May, I would ask my mortgage broker to revalue my properties and lock in my borrowing capacity to 80 percent of those new valuations. The exact timing of this does depend on your circumstances. Notwithstanding the prospect of future lending rule changes (as discussed above), it is always a good idea to maximize your access to borrowings, even if you have no immediate plans. So, what should someone interested in getting into property be doing now. Lock in access to as much equity as possible over the next 6 months. Depending on the type and location of your properties, I would probably be inclined to wait for one to two months before getting your properties revalued. This will allow for some more comparable sales to occur. Then, around April or May, I would ask your mortgage broker to revalue your properties and lock in my borrowing capacity to 80% of those new valuations. The exact timing of this does depend on your circumstances. How important is timing the market? Ultimately the price you pay for a property is largely irrelevant. What is far more important (by a factor of 10) is the quality of the asset you buy. Property is a long-term investment. You should plan to hold it for many decades. So there’s no point getting anxious over a few months. Discretionary vendors will be encouraged by recent results. As such, we should expect the supply of properties on the market to increase. This may have a cooling effect on prices or at least temper price rises. We must remind ourselves that prices are able to move in both directions. One thing is almost for sure. Interest rates are likely to remain low for an extended period of time, and that’s an opportunity. Resources: Michael YardneyGet the team at Metropole to help build your personal Strategic Property Plan. Click here and have a chat with us Get your bonus ebooks and reports – www.PodcastBonus.com.au Join us at Wealth Retreat 2021 Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: Some home truths about this housing boom with Stuart Wemyss Some of our favorite quotes from the show: “It’s not just you and me who are going to have to pay more. The government’s borrowings would cost them more.” – Michael Yardney “I see property price growth slowing later this year. Not prices going down, but the growth slowing.” –Michael Yardney “I’ve come to realize that too many people worry about failing, about getting it wrong.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

We are experiencing extraordinary times with a booming economy and surging property market yet if history repeats itself, most investors won’t become rich. So, in today’s podcast, I want to share three lessons with you to help even the odds in your favour. Firstly, I’m going to explain six reasons many property investors don’t become rich, and they’re probably not ones that you would’ve thought of. I would then like to discuss a controversial topic with you - that debt can actually be an asset, not a liability. Of course, not everyone agrees with me, but I hope once you’ve heard my point of view you will understand why the rich are getting richer because they know how to use it wisely, especially in today’s low-interest-rate environment. And then I’m going to share 5 things that you can do differently to make your future better. The reasons why property investors don’t become rich Reason 1 – Most people wait too long to start Many investors are waiting for everything to be “perfect” before they get going.  Which means they never get going. The longer you wait to get started with your investing, the longer it will be before you get the money, success, and freedom you want. Reason 2 – Fear stops them Fear keeps many of us from getting what we want, especially in matters of money. Some fear taking on more debt, others fear failure and some even have a fear of success. Successful investors have learned to harness their fears and rather than focus on the negatives, they use fear to force them into positive action. Reason 3 – Waiting until they know enough The fear of not knowing enough prevents other investors from getting started. However, the irony here is that the more you learn, the more you learn that you don’t know! The way out is to recognize that while you don’t know it all, and you never will, you do know enough to get started with your investing and you will learn more along the way as you apply your knowledge in the real world, surviving any mistakes and challenges along the way. Reason 4 – Focusing on linear income instead of passive income Some income streams are linear, and some are passive. Linear income is what you get from a job. Passive income is when you work once but continue to get paid over and over again from work you’re no longer doing. The way to become wealthy is having passive income coming in whether you go to work or not. Reason 5 – Not using systems for making money A system for making money is something that takes the emotion out of your investment decisions and makes the results more reproducible. My preferred system is investing in high-growth property.  Once you create a proven system for making money, there is no limit to the money you can make. Reason 6 – Not being patient Warren Buffet once said: “wealth is the transfer of money from the impatient to the patient.” To become a successful property investor requires patience and persistence.  You must not only get started, but you must continue on and follow through. How debt can be an asset You were probably taught by your parents to get a good education, a good job, buy a home, work really hard, and pay off your debt. But, in my mind, that’s not a productive use of the equity in your home. Instead, you should recycle the equity in your home and convert it into productive debt to buy income-producing assets. The three types of debt Bad debt: This is debt against assets that depreciate in value. Bad debt generally refers to things like credit cards or other consumer debt that does little to improve your financial outcome. Necessary debt: This is the non-tax-deductible debt against your home, but it’s something essential that can’t really be avoided. Good debt: This is a tax-deductible debt against income-producing and appreciating assets. Think loans against residential investment properties business loans. A seven step guide to debt recycling Over time you will have paid down a portion of your home mortgage with a principal and interest loan and during that time your home would have increased in value. The bank will often lend you up to 80% of the value of your home as long as you can show serviceability. You would take out a new investment loan using your available home equity as security and the purpose of this loan would be to use the funds as a deposit on an investment property. You could use this to invest in assets that produce both income and capital growth such as a managed fund, shares, or as the deposit against an investment property. You could even use the income generated from your investments, plus any tax advantages of a geared investment, to pay off the non-deductible debt in your home loan. Over time you will build your wealth as your investment property or share portfolio should increase in value over time and the cash flow you receive in the form of rental or dividends should also increase. At the same time you will slowly be paying down the mortgage on your home, so that when you reach your retirement years and start enjoying the longest holiday you will have in your life, you will own your own home with no debt and have an investment portfolio of properties or shares (preferably both) with a manageable level of debt. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan. Click here and have a chat with us Join us at Wealth Retreat 2021- find out more here Shownotes plus more here: Believe it or not, debt can be an asset | 6 reasons property investors don’t become rich + More Some of our favorite quotes from the show: “The more you learn, the more you learn you don’t know.” – Michael Yardney “The difference between the current value of your home and the outstanding amount of your mortgage is your equity.” – Michael Yardney “The quality of the results you get has a lot to do with the questions you ask yourself.” – 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

Property investment may be simple, but it’s not easy. It’s simple if you follow the rules and the right strategy, but it’s not easy because there are so many moving parts, and most people don’t even recognize that. Successful property investment requires the collaboration of a team with expertise in property, finance, tax, the law, and financial planning. If you’re a regular listener, you’d know I try to give you a mix of all of those things to give you a holistic overview of property investment. Today’s episode is no different. I’ll be talking to Ken Raiss, my business partner at Metropole Wealth Advisory, about the best ownership structures for property investment. After that, I’ll share my mindset message with you. Highlights from my chat with Ken Raiss: What are ownership structures? They’re a way of controlling your assets without owning them. It’s a way to get all of the benefits of having them, like wealth and the ability to pass assets on to your children, without actually owning them. They give you a better way to manage cash flows, tax, and asset protection while separating you from the asset. People’s lives and circumstances change. So even if you already have your portfolio and structures in place, it could make sense to change it now, depending on your circumstances. Types of structures: In general there are Companies and Trusts They’ve both been around for a long time, but they’re now coming into use by ordinary people. Companies are very regulated. They must meet the minimum regulations set by the government. There are no government laws or rules about what needs to be in trust. Trustees may hold the cash, but they have a legal obligation to use it the way that the trust says they have to use it. Trusts have lots of flexibility concerning who you can give it to and what you can use it for. Benefits of using a trust: A more efficient way of distributing cash flows Be able to manage their own tax affairs Better control and management of the estate on death More flexibility Asset protection Common mistakes people make when using structures: Setting up a company, particularly for a business, then becoming the individual shareholder Setting up a company when trust would be more appropriate Setting up a trust when you’d be better off with a company Getting the wrong type of trust Selling a property from a trust in such a way that the depreciation is added back to the trust once or twice Failing to take the trust’s end date into account Links and Resources: Michael Yardney Ken Raiss, director Metropole Wealth Advisory Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here In turbulent times like this why not get the team at Metropole on your side – find out more here Get your own copy of What Every Property Investor Needs To Know About Finance, Tax and the Law. Shownotes plus more here: What is the best structure to buy your property in, yet protect and pass on your wealth, with Ken Raiss Some of our favourite quotes from the show: “Before people panic too much, there are things that can be done to amend trustees.” – Michael Yardney “Many trusts have very broad definitions of who beneficiaries can be.” –Michael Yardney “I guess one way of summarizing the habits of successful people could be: successful people start before they feel ready.” –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

Almost 50 years ago I began my study of rich and successful people. Of course, not all rich people are successful. But I remember trying to understand why some people were rich while others kept struggling financially. Over the years I attended many seminars, paid mentors, and read as many books as I could on the topic of success. I modeled successful people and eventually grew successful myself. It wasn’t easy, I’ve had my challenges in life (mostly self-inflicted) and I’ve hit rock-bottom, but I got up again, learned from my mistakes, and moved forward. Over the years, I grew a very substantial property portfolio, built a national business this has won multiple awards as Australia’s leading property consultant and has been involved in over $4 billion worth of property transactions, and currently manages over $2 billion worth of assets for our clients. As you can imagine I have learned a few things about wealth and success along the way. And a byproduct of this is my top-selling book – Rich Habits Poor Habits — that I co-authored with Tom Corley and which has become an international bestseller and translated into a number of foreign languages including. In our book, we explain that being rich has little to do with the money itself. Instead, it has a lot to do with how you think about money. So, if you want to become rich, one of the first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action and to let the action become natural by thinking the way wealthy people think. Unfortunately, we live in a society that teaches us that money equals success. Like many other things, money is a tool. It’s certainly not a bad thing but, ultimately, it’s just another resource. Regrettably, too many people worship it. Now, I didn’t understand this when I began my study of rich and successful people more almost 50 years ago. Over the years I have learned that… Being rich has little to do with the money itself. Instead, it has a lot to do with how you think about money. This means that if you want to become rich, one of your first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action and to let the action become natural by thinking the way wealthy people do and developing what we call Rich Habits. In the last month’s Rich Habits Poor Habits podcast, Tom and I discussed some of the Rich Habits that are common among successful people, and in today’s show, we are going to continue this discussion, so welcome to today’s show. Rich Habits of Successful People If you’ve been reading my blogs or those of Tom Corley, or if you be listening to our monthly Rich Habits Poor Habits podcasts or you’ve read or RHPH book you will know that rich people share similar habits just the way poor people share similar habits. Now before you get too offended… We’re not making a judgment when we say rich people or poor people – they are terms we’re going to use to help clarify the different ways of thinking that 1% of people exhibit from the majority of the population. So, let’s learn more about these habits, Maybe we should clarify what habits really are: Habits represent unconscious behavior, thinking, choices and emotions. A habit is formed when neurons (brain cells) talk to one another repetitively. Habits have a purpose. More Rich Habits of Successful People Rich and successful people align themselves with like-minded people. They understand the importance of being part of a team. They create win-win relationships. The poor believe money will make them happier, while the rich know that money has little to do with happiness, but it does make your life easier and more enjoyable. The rich don’t blame (what’s the point?) They take responsibility for their actions and outcomes (or lack thereof). They know there is no such thing as a rich victim. The poor believe it’s wrong for a small group of people (the 1%) to possess most of the money. The rich welcomes the masses (the 99%) to join them. Successful people are not necessarily more talented than the majority, yet they always find a way to maximize their potential. They get more out of themselves. They use what they have more effectively. The poor believe that in order to gain something, you must sacrifice something else. You must choose between great family life and being poor, or love and being poor, but you can’t have both. The rich know they can have it all if they have an abundant mindset. Successful people are solution-focused, rather than looking for problems or obstacles. Successful people are fearful like everyone else, but they are not controlled or limited by fear. They use it to empower themselves. The rich get up early. They know there’s no shortcut so they work hard until they’ve accumulated a big enough asset base so they don’t have to work hard anymore. The rich ask the right questions – ones that put them in a productive, creative mindset and a positive emotional state. They understand that the better the questions they ask, the better the answers they get, and the better the results they will achieve. The rich have clarity and certainty about what they want (and don’t want) for their life. They actually visualize and plan their future while others are merely spectators of life. While the poor believe rich people are lucky, the rich know luck has nothing to do with their success. While the poor wait for their lotto numbers to come up, the rich don’t expect Lady Luck to pay them a visit; instead, they aggressively pursue their dreams. While the middle class believes the road to riches is through formal education like a college degree or a master’s, you’ll find many of the rich never completed high school. They favor specific knowledge in their industry over formal education. They’ve learned to become more valuable by becoming an expert in their job. The rich are voracious life-long learners. They constantly work at educating themselves, sometimes formally and academically; but more often informally by asking, watching, reading, or listening and also experimentally by doing, trying, failing, and trying again. By the way… I’m not talking about formal education. Of course, it’s worth realising that… We all have some of these Rich Habits and we all exhibit some disempowering Poor Habits. The big differentiator in the see-saw of life is: do you have more of the Rich Habits or more of the disempowering Poor Habits? The good news is that as you’re learning about these concepts in our book the choice is yours.  You can choose whether you will be a have or a have not. Links and Resources: Tom Corley - Rich Habits Michael Yardney - Metropole Get your own copy of our international bestseller Rich Habits Poor Habits Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Learn These Rich Habits of Successful People | Rich Habits, Poor Habits Podcast, Part 2 with Tom Corley Some of our favourite quotes from the show: “I think one of the comments we’ve both made over the time is that any problem that money can solve isn’t really a problem.” – Michael Yardney “I think we both realise that if you do the hard things early in your life, the rest of your life’s going to be easy.” – Michael Yardney “You can get random good luck. And you can get random bad luck. But the successful people don’t count on that.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

I recently read an article in the Australian by leading demographer Bernard Salt that made me think. He posed an interesting question. He said, “imagine taking an Australian couple from the 1950s and placing them in our society today. What would surprise them most?” Would it be the internet or mobile phones or our general level of prosperity? Maybe it would be something seemingly unremarkable (to us) such as the ubiquitous use of plastic. Or maybe it would be the idea of wearing outer garments with slogans, brand names and images paraded for all the world to see. Perhaps it would be our accent – it would sound less Australian, or the pronunciation of some words which would have more of an American twang to them, or even some of the words we use. Terms such as 24/7 became popular after the turn of the century, which brought with it the alphanumeric concept of Y2K. Bernard Salt suggested that if this ’50s couple were to wander around the CBD of any big city, he was sure they would be struck by the ethnic mix of the people, the cafes, the independence of women, and the absence of formal dress, with hatless men and gloveless ladies everywhere. I’m sure he’s right. This got me thinking about what will change in how we live moving forward after the coronavirus pandemic. How is your lifestyle going to change? While this is an interesting academic question it is also an important question to ask ourselves as property investors, business people, or entrepreneurs. As we move through 2021, we’re still getting regular reminders that even though life is more normal, the effects of Coronavirus will be with us for a long time. While some people are still looking back in the rear vision mirror to see what lessons we can learn to give us some guidance for the year ahead, let’s look forward into the future as I chat with leading demographer Simon Kuestenmacher Simon is Director of Research at The Demographics Group, a columnist with The Australian, and a regular guest on this who is globally recognized as a rising star in the field of data management and insight and a regular guest here on my podcast. All trends point towards Australians looking inwards, focusing on family matters, embellishing the family home. Retail shifted online during the lockdowns but even after Australia opened up again online retail remained higher than expected before the pandemic. The changes in retail sales by industry sub-group also show how Australians are investing in their family homes.  Major events don’t just change the way we view the world but also change the way we want our homes to look. When Italians and Greeks moved to Australia, we transitioned from building English homes to building Mediterranean homes that allow us to combine indoor and outdoor living. After the millennial drought, we added water tanks to our homes. During the pandemic, we added veggie patches, additional storage (for food and toilet paper?), zoom rooms to the house, and changed the way we use our garages.  Even after droughts, pandemics, and Mediterranean migrant waves are gone the changes introduced to our homes are still there. The current changes suggest larger homes will be in more demand. Customer behaviour also is linked to customer income. The story here is simple. The richer you are the less intensely the pandemic hit you. Tenant selection should be on an investor’s mind. This data further suggests that lower-skilled workers will struggle to afford homeownership and will therefore be renters. Links and Resources: Michael Yardney As our markets move forward why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Join us at Wealth Retreat 2021 – click here to find out more Simon Kuestenmacher - Director of Research at The Demographics Group Shownotes plus more here: These are the big trends post-Coronavirus and they may not be what you expect with Simon Kuestenmacher Some of our favourite quotes from the show: “Even dress code seems to have changed. People are less formal post-COVID.” – Michael Yardney “Sometimes we only look at what it costs to do something, and then when it seems too hard, we just don’t do it.” – Michael Yardney “You’re never going to become rich if your money doesn’t work for you while you’re asleep.” – 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 are a lot of great things about being an adult, such as setting our own bedtimes and owning the pet of our choice. But perhaps most importantly, with age comes the wisdom and perspective we only wish we had when we were younger. So if you had the opportunity to go back in time, what would you have liked to tell your younger self? That’s what I’m going to discuss today with Mark Creedon and even though we can’t go back in time, we can reflect on the hard-earned knowledge we wish we had known then. And we can even use it to inspire our future selves. What would you say to your younger self if you could? When we are young, we think we know it all. We have our whole lives ahead of us, and the exuberance and energy to go after what we want. But our 20s can also be a time of great insecurity. We are hungry and ambitious but lack the experience to know how to calculate risk properly, follow our gut or learn from our mistakes. Put simply: we don’t have enough runs on the board to make fully formed decisions. But what if you could have a conversation with your bright-eyed, 20-something self? If you could have given he or she some wisdom from the future what would it be? What would you warn them against or encourage them to do more of? Here are some of the things we discuss: Look after yourself Hard work to the exclusion of all else is not the answer. Take Calculated Risks You don’t save money by doing everything yourself. 5. Get a mentor; get a few mentors and be prepared to pay for them 6. Choose your friends carefully Admire rich people 8. Educate and motivate yourself Make investing a priority Don’t compare your life to others, especially on social media. Links and Resources: Why not join Metropole’s Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia’s leading entrepreneurs  Get a copy of Mark’s new book here – Have a business not a job Join us at Wealth Retreat 2021 – find out more here Shownotes plus more here: What’s the best advice you would give your younger self? | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: “I think I was probably too driven, too focused in the first part of my life.” – Michael Yardney “I believe it’s really important to choose your friends carefully, choose your friends wisely.”— Michael Yardney “I don’t particularly like employing people who haven’t had failures in life. It means they haven’t had a go.” – 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

We’re at the beginning of a new economic cycle, a new property cycle, and a new business cycle - a time when lifetime wealth will be created by some people, but unfortunately not by most. I was recently asked by somebody in my mentorship program how to make the rest of their life the best of their life – how to make the second half of their life much, much better than the first half of their life. And that’s what I’m going to discuss with you into today’s show. So today we are not going to talk about property or money, we are going to have a much deeper conversation. Of course, property and money are important but only as a means of achieving what do you want to achieve and that’s really what we get to talk about today I’m going to give you some hints on how to take advantage of all the opportunities that are currently in front of us. One of the things I realized early in my investment career is that those who are successful think a particular way and that’s why I spent a lot of time studying the psychology of successful people and that’s one of the topics I’m going to be touching on today – so while a chat today may be a slightly heavier conversation than you used to – I believe it will be very valuable so I look forward to giving you some different insights into wealth creation, but before I do let me ask you a question? How is your peer group going? If you want to change your outcomes, have you considered upgrading your peer group? It's been said that you're level of wealth is likely to be the average of your 5 closest friends. Here are the top three reasons why your peer group matters so much: Your peer group's attitudes, beliefs, and behaviours are contagious. Alone you are vulnerable; connected we are strong. It's a lot more fun to build with other people than in isolation! A little about gratitude I'd like to chat a little bit about something that may initially seem unrelated to money and wealth and I think you probably have come to this podcast to learn about, but in reality, it isn’t. Let's talk for a moment about gratitude. And here's why…Gratitude is a trait you'll find common to all wealthy people. You can have all the money in the world, the biggest property portfolio, the most profitable company, but if you're not grateful for what you have, you'll never be wealthy. We've all seen or heard of people who have lots of money but lead miserable, isolated lives. And we've heard of others with very few of the trappings of wealth yet who lead very fulfilling lives, very wealthy lives, because they are grateful for what they have. So, in my mind it’s critical to be grateful. One way to make this the best year of your life is to be grateful for everything you have and for every day you have. And then tell people how you feel… Send a thank you note, send a text, a Whatsapp or better still do it the old-fashioned way and pick up the phone and show your appreciation to someone every day. One of the most interesting aspects of this idea of active gratitude is that it has a boomerang effect. You'll be surprised how it comes back in many ways to make you wealthy and to help make this your best year ever. But, actually that's not what I was intending to talk about with you today, so lets get back to some other ideas about how we are going to make this your best year ever. Let me make a bold statement… What you feel is true about what is possible for you will dictate what you achieve. What you want to achieve this year must come first and then you'll work out how. That's why you must have goals for your future. I know that once you become successful in business or your property investments it’s sometimes hard to have big goals – you’ve achieved a lot already. Can you pick this one of the things I find common amongst the attendees of the wealth retreat – have achieved a lot of the big goals in unsure what to do next. So my question to you now is…what are your goals for this year? What are your goals for the next five years? What is your financial goal for this year and for the next 5 years? What are your physical and mental goals? What is your goal for your relationships? What are your career goals for this year? You see… in about less than 9 months you are going to arrive at the end of the year again. Are you going to arrive at the place you want to be at? The place you have chosen and have done everything you could to get there. Or are you going to once again say: "I didn't reach my goals." The "what" always comes before the "how." One of the things I've studied is how it is possible to retrain the brain. And I've based this Mentorship program on my findings. I studied to find out if it is possible to take a belief and put it aside if it doesn't serve you. Can one take a belief like "I'm not smart enough", "I'm not good enough" or "I don't deserve to have success" - is it possible to set those neutral network patterns aside and create new patterns in the brain? As you've learned from my blogs and podcasts your outside world is a reflection of your inside world. What you find in the outside world is a reflection of the words you've typed into the search engines of your mind. What are you typing into the search engine of your life? If you type poverty into Google, all you will find are the websites related to poverty. If you type in wealth - you find all the websites related to wealth. It's the same with the way you see the world - it’s the same with the search engine of your mind - because you don't see the world with your eyes.  The world is not what you think you see. What really happens is that your eyes allow light to come in and your brain deciphers what the light is, based on the patterns and images that it already recognizes. Based on the filters your programming has put in place - so firstly you filter lots out. You couldn't cope with all the information we are constantly being bombarded with, and then you interpret what's left with the files you have programmed in your brain. So if you're used to earning 50 or 60 or 70 thousand dollars a year, your software is conditioned to find that in the physical world. The good news is your software can be reprogrammed. Because as soon as you set the vision, your vision for where you want to end up, you are also giving instructions to your brain that that's what you want it to find for you in the physical world. Your brain is like a radio receiver and it can tune into what you want and tune out of what you want. Every time you have a thought your brain releases a chemical that relates to the emotion behind that thought. This chemical is felt by hundreds of billions of cells throughout your body. Now let's take this train of thought a bit further… Everything we want in the universe is right here, right now. I don't know if you know much about quantum physics - a fascinating topic, and something I'd like to touch on right now. Quantum physics suggests that everything we want in the universe is right here, right now. And as soon as we have a thought, as soon as we have the intention for something we don't have right now or something we want, we are actually causing a fluctuation in the nonphysical world - in the waves and particles of the potentiality that exists all around us. Quantum physics teaches us that everyone is a genius, everyone has the ability to create, to achieve whatever their heart desires. Of course, I'm not saying that when you have a vision, when you have a belief, everything will work out great for you. You know it won't! But it's important to have the right vision which will create the right vibration, but then you need to take action because if you don't take action nothing will happen. So why don't most of us achieve our goals? Why don't most of us take action? Let me be more specific. Why don't more of us take the right actions? Well… it's partly because our brain wants to keep us in our comfort zone in what's called homeostasis. Think about this for a moment… If we had a thermostat in this room set to 20 degrees and a cool wind comes in, the thermostat will pick up the cool breeze and send a message to the heater to turn up the heating and get us back in our comfort zone. If the temperature goes up because there's a number of people in the room, the thermostat picks the rise in temperature, and the air-conditioning kicks in and brings the temperature back to our comfort zone. A guided missile system works this way. The automatic pilot in a plane works this way. Guess what? We work the same way. We have a thermostat in our mind and any deviation in our performance - high or low - sets off a chemical in our brain that flows straight into our bloodstream, which causes you to have doubts, fears, and anxiety. Why? Because we like our comfort zone. We don't like being moved out of our comfort zones But the truth is change is happening all the time - you are either growing or you're disintegrating. If you want to take control of your life and make the decision to have your best year ever this year, it means you are going to have to move out of your comfort zone. It means you have to acquire new skills and you are going to have you apply different strategies. The key in business or in life is to understand that results just tell you about the past. So here is the key again... You've got to start out with the future, with those goals, with that vision, and then work backward from there. If you start out in the future with what you want and then build the belief systems underneath this to support the new vision, and you acquire the skills necessary and apply the right strategies then you will achieve predictable transformation and predictable results. Would you like to have predictable results in your life? There is a formula to achieve this. Most people are looking at their current results and saying "OK this year I want to increase these by 10 or 15% because that's what they think they can achieve. But at Wealth Retreat we don't just want to increase your results by 10 to 15%. I want you to take a quantum leap this year. But most people will never achieve this type of transformation because they don't understand that our universe operates by exact precision. It follows precise laws and there are no accidents. From the way your digestive system works to the orbits of the planets - it happens by exact precision and following precise laws. So for this to be your best year ever you're going to have to let go of being a victim and forget the past by altering your thinking You're going to have to create your circumstances by altering your behaviour. Create your circumstances by changing how you feel about yourself. You are going to have to upgrade your internal software - you'll have to turn up your thermostat. Now our gift is the ability to think differently if you want your life to change. That's what gives you and I dominion over the animals, the plants, and the minerals. It's our ability to choose our destiny. Our ability to choose our thoughts. And yes we have conscious thoughts and unconscious thoughts. And we have positive thoughts and negative thoughts. We have supportive thoughts and non-supportive. If we can have more positive thoughts and squelch those automatic negative thoughts, then you're going to be more of a positive vibration than a negative vibration which will allow you to attract everything you need to create your best year ever. The secret to having the best year ever and maybe it is not so much of a secret is to start with the vision of where you want to end up. Then you have to change your beliefs about yourself, about what's possible. When you think negative thoughts when you focus on what you don't want you will recreate more of it. Is that much of a secret? That when you think positive thoughts and you send positive good into the world and you do positive things to the world that it will come back to you? Is it possible that when you step up and step out of your comfort zone right now you can change your life? You see… I can't change your life. You can change your life. But you can't do it doing the same things you've been doing to get where you are. If what you want is different to your current results, I urge you to step out of your comfort zone, do what it takes so that when you finish this journey on this little blue planet you will go wow that was phenomenal. You owe it to yourself; you owe it to your family. You owe it to them to make this the best year ever. Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here  Shownotes plus more here: The right and wrong things to do to make the second half of your financial life better than the first half Some of our favorite quotes from the show: “I'm sorry to say that now that life is really good, being grateful is not an art I'm anywhere near a master of anymore.” – Michael Yardney “The "what" comes first and then the "how."” – Michael Yardney “There is nothing more powerful than thoughts. It's how everything starts.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

I took some time last weekend to look at some articles and commentary that came out about a year ago when the GVC (Great Virus Crisis) was just beginning. The media was full of negative commentary but in my regular podcasts my guests and I gave a much more measured commentary using our perspective gained from many years in the market, and as a result we were circled by a pack of “hangry” housing bears. They were all confidently growling that local house prices would slump by the largest margin on record. Of course, they were fuelled at that time by some crazy forecast from the banks and the perennial negative Perma Bears who were praying for the mother of all housing depressions.  Now the media is full of positive news and most of the bears have gone back hibernating in their caves, but some are still out there telling us the upturn in our property markets is just temporary. We have an embarrassment of riches, with our economy and our property markets surging ahead. While much of the commentary is about the micro factors – what’s happening on the ground in our property markets, I like to regularly get together with property commentator Pete Wargent in these “Big Picture” podcasts to look at the macroeconomic factors affecting our economy and the property markets to help give you some more clarity about what the future holds so you can make better investment and business decisions. No fiscal cliff at the end of March Remember how the property pessimists were worried that we would fall off the cliff due to the many deferred home loans? Many banks gave temporary relief to borrowers impacted by COVID-19, allowing them to defer payments for a period of time. However, APRA reports that as of 28 February, a total of $14 billion worth of loans are on temporary repayment deferrals, which is around 0.5 percent of total loans outstanding, down from $37 billion (1.4 percent of total loans outstanding) in January. Sure, lots of homeowners and property investors took advantage of the mortgage safety net, but they didn't need to use it and are now repaying their debts. We're not falling off of a fiscal cliff and our banking system is sound and stable – so it's a pity the Negative Nellys created so much stress amongst those who listened to them last year. Property prices and GST boost state budgets by $7billion The fastest house price growth in 32 years nationally has fuelled stronger than expected stamp duty revenues while also adding a feeling of wealth for existing homeowners. We know when we feel wealthy and secure, we will tend to spend more. This all good news to help continue boosting the post-COVID-19 economy. And this has a flow-on effect on government budgets. We know our governments have taken on more debt to help us get through the coronavirus crisis, but now it seems that State government budgets are a collective $7 billion better than expected as rapidly recovering housing markets and consumer spending lift goods and services tax and stamp duty collections run ahead of forecasts. Federal estimates of GST collections are already $5.9 billion ahead of where they were forecast to be just three months ago, while stamp duty estimates have improved in every state by more than a combined $1.5 billion compared to past figures. The latest home loan figures show that investors are back in the market The latest ABS figures show the value of new loan commitments for housing fell by 0.4 percent from a record-high $28.75 billion in January to $28.64 billion.   On the other hand, investors are back in the market with lending to investors rising by 4.5 percent in February to 3-year highs of $6.94 billion, while lending to owner-occupiers fell by 1.8 percent to $21.70 billion.  For owner-occupiers, the value of loans for construction rose 4.4 percent in February to a record-high $4.25 billion. Renovation loans rose 8.3 percent to 11-year highs of $322.4 million. Building approvals surging ​February saw another big upside surprise for dwelling approvals which leapt 21.6% in the month to be up 20.1%yr. ​The record house building approvals were driven by the government’s HomeBuilder program which has now have sparked shortages of key tradespeople and helped push the price of materials up by as much as 50 percent. ​Rampant demand in the renovation and home building sector is hitting customers with significant delays and pushing up the price of materials. And disruptions to international supply chains are only making matters worse. ​​With dwelling approvals for houses at record highs, it’s likely we will see additional pressure growing on construction costs as demand continues to build for residential construction materials and resources. The lift in residential construction costs is also placing upwards pressure on inflation where housing costs receive the heaviest weighting within the CPI ‘basket’ of goods. Although HomeBuilder has now been phased out at the end of March 2021, it’s highly likely we will see a continuation in this trend towards higher residential construction costs as it will take some time for builders to work through the surging pipeline of house approvals. Job vacancies Despite the concerns of double-digit unemployment, 90% of the jobs lost over Covid have been recovered. In seasonally adjusted terms, job vacancies rose by 13.7 percent or 34,800 to a record 288,700 available positions in the three months to February.  Vacancies are up 26.8 percent or 61,000 available positions in February compared with a year ago. Of course, JobKeeper has now ended and while there is some concern that more people become unemployed, the residential property boom if you’re in strong demand for construction workers. ANZ Bank Forecasts A new report released from ANZ Bank predicts house prices at the national level will rise to a strong 17% through 2021, before slowing to 6% in 2022. What a turnaround from all the pessimistic forecasts all the banks made in the middle of last year. ANZ senior economist Felicity Emmett said she expected the Australian Prudential Regulation Authority (APRA) would then introduce macroprudential measures to slow house price growth into 2022. Also… it is unlikely that APRA will intervene with macroprudential controls any time soon, in light of APRA chairman Wayne Byres’ comment this week when he reminded Parliament that its primary responsibility is financial stability, not soaring house prices, and it is not seeing activity right now that would compel it to intervene. Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here Pete Wargent – Next Level Wealth Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: The Big Picture Economic and Property Trends You Must Understand, with Pete Wargent Some of our favorite quotes from the show: “March has come and gone, and there was no fiscal cliff.” – Michael Yardney “I believe that good debt, debt against appreciating assets, is really an asset.” – Michael Yardney “Once you realize that no amount of money is going to make you happy unless you shift your mindset into gratitude and abundance mode, you’ll never be happy.” – 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

Why are you investing in property? Or why do you want to get involved in property investment? It’s not really for the properties, is it? For some people, it’s because they want to fund their retirement, while for others it’s that they want more choices in life – they don’t particularly want to retire, but they want to work when and how they want to work and because they want to go to work, not because they have to. However, the inconvenient truth is that despite over 2.1 million Australians investing in property, 92% of them never get past one or two properties in the portfolio, meaning they won’t be able to fund their retirement. So, is it really possible to live off your property portfolio in the current economic climate and in our more challenging finance environment? The answer is… the rules of finance have changed considerably and how one funds the longest holiday you’re ever going to have – your retirement – is very different from how you would have structured it many years ago. And that’s what we discuss today in my chat with financial advisor Stuart Wemyss. At the end of today’s podcast, you’ll have more clarity on how to successfully live off your property portfolio. And I’m sure you won’t be surprised if I tell you it’s not what most people would recommend. Funding your retirement from property investment More and more Australians are looking at property investment as a form of taking control of their financial futures. Yet some people seem to be questioning the ability to really fund a reasonable retirement through property investment. So, today I’m going to have a chat with Stuart Wemyss, to get an understanding of how to fund the longest holiday you’ll ever have – your retirement. Many years ago, I was introduced to the concept of living off the increasing equity of your properties, but that really isn’t possible in the current lending environment. In fact, it’s changed since the global financial crisis. So you’ll have to build an investment portfolio that will allow for a great retirements Stuart and I discuss The importance of building an asset base. How does one structure a portfolio? So many unknowns for the future Must account for taxes What about interest rates – will they remain low it is best to acquire a combination of investment assets i.e. some property, some shares (hopefully in super), and some cash by the time you reach retirement. It is not necessary to acquire these assets equally each year. People who insist on “property, property, property” or “shares, shares, shares” are probably biased. It’s OK to take a level of debt into retirement if you can comfortably service it. Borrowing to invest is typically a good wealth accumulation strategy as long as you do it prudently and adopt a proven methodology to select quality investments. If used wisely, debt can be a very effective tool. However, whilst your investment strategy will require you to get into debt, the strategy must also articulate how you will get out of debt (i.e. repay it). Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here  Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: How do you fund your retirement using a property portfolio in today’s financial environment, with Stuart Wemyss Some of our favourite quotes from the show: “We don’t know what the rules are going to be when you retire in the future.” – Michael Yardney “To get the results most of us are looking for, you need a plan. You need a strategic financial plan.” – Michael Yardney “Your wealth operating system is what connects your inner self, your thoughts and your feelings, with the outer world.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to take advantage of our property markets and become financially independent, today’s show is for you, because I’ve got 3 segments during which I share a number of concepts that will help you along the way. First, we discuss whether property investing is an art or a science. Spoiler alert: it’s both. But you still need to listen to the balance of the show because I’m going to explain how and why they interact. I’m also going to discuss the concept of becoming a borderless investor – investing in another state. I know a lot of people find this difficult. I see this particularly among intelligent and analytical people because they want more control. But bear with me as I explain some of the benefits and why you should at least consider becoming a borderless investor. Then in my mindset moment, I’m going to share a lesson that’s made a difference to how I structure my life and I’m going to talk about the big rocks in the jar of your life. Is successful property investing an art or a science? So, Let's look at the three types of property investor. The passive investor A passive investor tends to spend little time doing any due diligence and is keen to buy one of the first properties they come across.  They aren’t really interested in understanding all of the ins and outs that go along with creating a property portfolio such as finance, tax laws, compounding and so forth. Instead, a passive investor tends to let their emotions get involved in their investment decisions, which we know can lead to disastrous results. The active investor An active investor puts in some degree of work in order to find a good investment prospect, including conducting some due diligence in the hope they can increase the likelihood of making a good and viable investment purchase. They generally look to gain a basic understanding of the principles involved in property, finance and taxation and would look to seek professional advice for help with structuring a portfolio. The analytical investor An analytical investor is the far extreme of a passive investor. Instead of undertaking little research and due diligence, this type of investor tends to go overboard and spend months, or even years, examining data, seeking advice and reading material in order to look for the ‘ultimate’ investment property. While it may seem that an analytical investor is more likely to make successful investment decisions, it’s actually not the case. The problem with property data There’s no doubt that it’s important to understand the property fundamentals and research appropriate and reliable property data, and the more extensive the data research is and the longer it goes back, the more accurate it is in forecasting future trends. But the problem is, data is often wrong. Unfortunately, the most commonly-reported data - median price data - is actually very unreliable. There are three reasons: Because median prices fluctuate depending on the way the property is sold. In many suburban areas, where property sold a number of years ago and vacant land has now been replaced by new homes, this data is irrelevant. Similarly, new apartment or townhouse developments can skew median house prices of other local properties. Gentrification and renovation changes the nature or quality of properties which again, results in the median house price for the area being incorrect. Using median price data is risky for investment purchases and can cause costly investment mistakes. Just because median prices go up in the area doesn’t mean that value of any local property also increases. So is property investing an ‘art’ or a ‘science’? Both. It’s true, successful property investors need research and data to aid an investment decision, but it’s not enough on its own. Investors also need to compliment any applicable data with local area knowledge and expertise, plus experience and perspective in order to make the best-informed choices. Someone looking at data can make it say almost anything they want; the trick is knowing how to take that information and use it in conjunction with some practical experience in order to accurately make an investment decision. In other words, data and research is a critical step in getting ready to invest, but it is only one of the many important steps. What’s the key lesson here? Property investment is an expensive game, and you can’t afford to get it wrong. Engaging with experts with many years of experience can help you avoid making the costly mistakes made by so many naïve investors. Remember, property investment data is crucial when making an investment decision, but it’s only half of the work. Should you become a borderless investor? You know…invest in another state? The short answer? Yes, absolutely! The long answer? There’s so much you need to consider when investing in property, and the location and your proximity to the property is just one of them. Investing interstate is not without its risks. But to be a successful property investor who creates sustainable, lasting wealth from your property portfolio, it’s my belief that you need to adopt a diversification strategy. This is because (and I may sound like a broken record here to people who have read my articles or seen me speak on this topic before), there is not one “single” property market in Australia. Our country is made up of many real estate markets, which don’t always move in sync – they each have their own cycle. Just look at the significant variance of the different property markets in 2020 for evidence of that. Values have been falling in one market and rising in another, a dynamic that sometimes plays out at a suburb level. By that I mean, one suburb can be experiencing growth, while a nearby suburb may not. Investing in a city other than your own can be a wise way to spread your risk across multiple markets, and take advantage of growth cycles that may be stronger than your local area. Think about it: if you limit your investment options to your own backyard, are you really setting yourself up for financial success? Furthermore, searching for properties in your local area is not really “researching”. Rather, it’s searching for facts to support your ready-made preconceived opinion that the area is a good place to live or invest. And here’s the truth about property investing... Diversification of location is key. This is very different to having a philosophy of diversification of investments, which is a whole other ballgame (on which I have very strong opinions!) It’s those investors who have diversified property portfolios who will find they benefit, as different capital cities each have their own day in the sun – as their cycles peak at different times. There are also land tax issues to take into consideration. If you acquire a number of property assets within one state, you could end up paying a whopping land tax bill every year. By spreading your risk and buying properties in various locations, you may minimise the amount of land tax you’re required to pay. This is not a reason to diversify, it’s just one of the possible benefits. Now don’t get me wrong… I’m not suggesting investing in other states just for the sake of it. What I’m recommending is that as investors build their property portfolios, they should add investment grade properties in the 3 big capital cities in Australia to their assets. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Is Property Investing an Art or Science? Becoming a Borderless Investor + More Some of our favourite quotes from the show: “Instead of undertaking appropriate due diligence by closely looking at property data, many investors are making emotional purchases and it's causing poor decision making.” – Michael Yardney “Failing to combine the science and the art of property investment could end up costing you a fortune.” – Michael Yardney “By spreading your risk and buying properties in various locations, you might minimize the amount of land tax you’re required to pay.” – 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

With the property markets surging around Australia, people are starting to ask is this more than a just a property boom? Are we about to enter a property bubble? That’s what I’m going to discuss today with property researcher John Lindeman, and we’ll explain the difference between a boom in the bubble in what we believe is ahead for a property market so you have more clarity in making investment decisions But before I have that chat with John, I will explain to you what it takes to be in the top 1% of wealthy Australians. And what it takes to be in the top 1% wealthy people in the world. And the figures I’m going to share with you may surprise you, in fact, if you’re listening to this, you’re likely to be amongst the top 1% of wealthy people in the world. But I’m then going to share with you what you can do to work your way up the ranks. And I will also have my regular mindset message for you at the end of the show. Who is in the Top 1%? Today, I’d like to have a bit of a chat about what it takes to be in the top 1% of wealthy people. We know that true wealth is more than how much money you have or how many properties you own. But you don’t have to look far to see the references to the top 1% of money earners and how disproportionate the distribution is in Australia and around the world. The coronavirus also helped expose the deep divide between the rich and the poor. But you may be surprised to find that the 1% doesn’t just include the superrich. It may include you or someone you know. How rich do you think you need to be to make it into the 1% club? It’s very likely if you’re listening to this podcast you’re already in the one percent. According to last year’s Global Wealth Report, an individual net worth of Australian one million two hundred ninety-five thousand dollars, a combined income of investments and personal assets, will make you amongst the world’s richest people. In other words, you need about 1.3 million to be in the world’s 1%. As it turns out, there are discrepancies even among the 1%. But when you look at the Bureau of Statistics, the average Australian has a net worth of just over a million dollars, and the Australian top 20% have a net worth of 3.2 million dollars. So, a net worth of just 147,000 Australian dollars puts you in the top 10%. To be in the top 1%, you only need 1.3 million And Australian wealth is heavily skewed to property ownership. Just owning their own home can make many Australians more money than their day-to-day work. That’s why I discuss how to become successful in property. I want you to be in that 1%. But what’s the solution to wealth inequality? Focus less on taking action that could inhibit the top earners and more on what’s stopping others from being successful and what’s holding back the bottom 50%. If we’re in a property boom, when will the bubble burst? We are in a new property cycle, but rather than starting off slowly as they have in previous cycles, almost every property market around Australia is exhibiting strong capital growth. This time around is very different from other cycles I’ve experienced where capital growth starts slowly and different segments of the market in different states behave differently. Currently almost every market, in capital cities and regional Australia at the high-end price segments of the market and it’s the first homeowner level are moving upwards in price. The one segment which is languishing is the CBD high-rise apartment. Some commentators are claiming that our property markets are heading for a boom – I’d say they’re a bit late to call you at that – we are in boom conditions. But others are warning that we could soon be in a price bubble that is about to bust. So, what’s the difference between property booms and price bubbles, which are we in, and what’s ahead. That’s the question I would like to ask leading property researcher John Lindemann of Property Power Partners – John is one of the popular regular guests on this podcast and a regular blogger on property update and Your Investment Property Magazine So, let’s start with some basics – what’s the difference between and property boom and bubble? Bubbles invariably bust and when they do, housing prices end up much lower than where they started. Property booms, on the other hand eventually run out of steam with an occasional small price correction followed by a prolonged period of little to no growth. While bubbles do not happen in the general Australian property markets which are underpinned by a large proportion of owner occupiers, in the past we have seen property bubbles in certain speculative sectors of the property market such as mining towns or off the plan poor quality high-rise apartment towers in our capital city CBDs. The issue is that they both look the same at the start. It’s the type of buyers causing the growth. Buying demand from investors grows when prices rise and the more that they increase, the more that investors want to buy properties. Owner-occupier booms take place despite price growth and the more that prices rise, the more that demand slows down and then stops as prices become unaffordable. Only investor led booms can become bubbles. Investor-led booms can become bubbles because investors don’t buy properties to live in, like owner-occupiers do. Profit is their only consideration, and fear of loss their only concern. This means that when price growth slows down or stops, investors start to put their properties on the market and try to sell. When the number of properties for sale exceeds buyer demand, prices start to fall. Panic starts to set in as more and more investors try to sell and because no one wants to buy, the bubble busts. Owner-occupier booms merely slow down and when they end prices don’t crash, because the purchased properties are now people’s homes. When buyer demand comes to an end, there’s no motivation to sell. Only those homeowners who really need to move for personal, family or business reasons will do so. Property booms can occur anytime and anywhere that the demand for housing outpaces the supply, but only investor led booms can turn into bubbles. So what type of property boom are we in right now? There’s a simple benchmark that tells us the type of boom taking place right now, and therefore what is likely to occur when the boom has ended. The benchmark is called tenure, a technical term that refers to the conditions by which homes are held or occupied. Just over one quarter of homes in Australia are rented from private investors, so if the percentage of homes being bought by investors is lower than this, then owner-occupiers are driving buyer demand, but if the percentage climbs higher, then we are heading for an investor led boom and a possible bubble that could bust. Investors buying have been lower than the 26% benchmark since 2019, and also the percentage of investors buying homes is declining. Investor Approvals Investor interest in residential property has waned in recent years because rental demand is falling and the yield from rent is too low. Investor interest has turned instead to high yielding investments such as shares, commodities and even commercial property. Owner-occupiers are not deterred by low rental yields, because they buy properties to live in, not to rent out. The current mix of low interest rates, easy finance, reduced repayment buffers plus government incentives and waivers is causing the current surge in owner-occupier demand and when the new affordability ceilings are reached, growth will slow down and then end, but it won’t bust like a bubble. This is a period with many Australians that are upgrading their accommodation. Tenants who are unhappy with their accommodation are upgrading to better tenancies. Other tenants who’ve got a bit of money behind them and can take advantage of the government grants and incentives are upgrading and becoming first homebuyers. Established homebuyers can see property prices surging and many are looking to upgrade their homes to bigger or better accommodation in better locations. Other homeowners are upgrading to lifestyle locations and Some baby boomers are upgrading their lifestyle by downgrading their homes to larger apartments or townhouses in desirable neighbourhoods. While there’s no doubt some people are moving to regional locations close to the CBD, you just have to go to the open for inspection in Sydney, Melbourne, Brisbane, or any capital city for that matter or attend any auction and you’ll see that the bulk of the buyers still want to live in the big city. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join us at Wealth Retreat 2021 – click here to find out more John Lindeman – Lindeman Reports Shownotes plus more here: How to be part of the rich 1% | Are we in a property boom or bubble? With John Lindeman Some of our favorite quotes from the show: “Even though our system has lots of faults, it has actually created more prosperity, even for the lowest one percent, than most of the world can comprehend.” – Michael Yardney “It’s the investors that create the swings.” – Michael Yardney “The more you invest in yourself, the more opportunities you create.” – 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

Who do you ask for property advice? With so many mixed messages and so many people out there with property advice, who can you trust? Today I’m going to teach you the ten-meter rule, and suggest you never break the ten-meter rule when getting property advice. The rule will also stand you in good stead in other situations where people are willing to offer you advice. Then I’m going to have a long chat with you about the reticular activating system. At the end of today’s show, you’ll have some new ideas and tools that will help you take advantage of our property markets. Introducing the 10 Meter Rule Now that the conversation has moved away from COVID-19, it seems everybody I bump into has an opinion on our property markets. They’re reading all the news and while some believe property markets are going to perform strongly there are still many who believe we are in a bubble or a Ponzi scheme that’s about to collapse. Some are keen on buying off the plan, others are looking at houses and land packages and yet others think it’s better to rent and buy. I saw something similar when I was having a chat with the young lady who came up to me a few weeks ago when I was sitting in Church Street Brighton having a coffee. She obviously recognized me from my blogs or my photos on the Internet and wanted to ask me some questions about real estate, so I gave her a few minutes of my time. The conversation started with what I thought was going to happen to our property markets, but then when I asked her what her plans were, she explains to me how she recently paid a lot of money for a course to learn how to be a buyers’ agent and was going to help homebuyers and investors. She was going to make that her career. I know the course she is talking about because it has produced a whole swag of new buyers’ agents, so I asked her a little bit about her background. She had brought one investment property a couple of years ago in a suburb of Melbourne, which hasn’t performed very well, and up until last year, she was a teacher. But now with her newfound knowledge and enthusiasm, she was going to charge others to buy real estate for them. As I listened to her story it reminded me of a blog that I read probably over a decade ago by Canadian property commentator Don Campbell where he explained how a comedian made a significant difference to his property investing. Now investing in real estate is no joke, but a comedian taught him the final 30-foot rule, which I have changed to the final 10-meter rule, and understanding this will make a difference for you. Okay, in a nutshell, it comes from the comedian, old-school comedian, Buddy Hackett. My understanding of The Final 30 Feet (or the Final 10 Metres as I’m now calling it) came from a warning given by Buddy Hackett to a young and upcoming comedian on how to deal with the mountains of advice that TV executives, promoters, friends, and family will give him as he built his comedy career.  Buddy’s advice was simple yet profound: “Listen politely, smile and allow them to feel helpful… then turn around and seek out and take advice only from those who have walked The Final 30 Feet.” The obvious follow-up question was: “What do you mean the Final 30 Feet?” Apparently, Buddy said: “Only take advice from those who have walked the final and most important 30 feet from backstage to being alone in front of a microphone with nowhere to hide. Then, and only then, will you know the advice comes from reality and not theory. They’ll understand the emotions, the work it takes to get it right. They’ll have made the mistakes and created the laughs, not just read about how to do it.” This sage advice is obviously very relevant about whom you should listen to with regards to property and wealth advice. In essence, there are a lot of enthusiastic amateurs out there who despite their best intentions, and even if they’re confident with their thoughts are correct, will steer you in the wrong direction. And that’s not necessarily because they mean to you or intend to, but because they don’t have the experience or perspective to give the right advice. So, my advice to you is to be very careful to choose advisors who have the final 10 meters of experience in whatever field you are asking assistance with; be it property investment, business, relationships; because there are just too many inexperienced pretenders out there. By the way… this doesn’t surprise me.  I have seen this happen at the beginning of every new property cycle, a flood of new so-called experts trying to make a living giving advice. And while a rising market may cover up some of their shortcomings, I keep coming back to Warren Buffett’s saying – “A rising tide will lift all ships, but when the tide goes out, you’ll see who swimming naked.” In the past, I’ve written about the fact that successful property investing is part science and part art. There’s no doubt that science, theory,  data, and research, are very important. But they tend to be useless unless you have the art part mastered as well – the perspective and that comes from years of experience and from the lessons of failure. Perspective is something that you can’t buy – but it’s something you can hire when you get the right team of experts on your side. Despite my success in investing and business I still have mentors and pay for business coaches. And the concept of The Final 10 Meters has served me well. I seek out who people have already achieved what I want to achieve, have solved the problems I need to solve, and have made the mistakes I want to minimize. Your Reticular Activating System (RAS) The RAS plays into the psychology of success. The RAS is a filter that sorts through the input into your brain and decides what you’re going to see and what you’ll ignore. Your RAS responds to your name, anything that threatens your survival, and anything you need to know. It also seeks data to validate your beliefs. You program your own RAS filters with your parameters, along with your own past experiences. If you learn how to control and reprogram your RAS, you can get the results – and the success – that you want. Your RAS works like a search engine, looking for what you’ve programmed it to look for. So if you create a clear picture of what you want, your RAS will know what to look for. But your RAS also aligns with your own preconceived belief system, so it will pay more attention to things that fit with what you already believe. If you believe you will find opportunity and success, your RAS will help you see them. But if you believe you’ll find debt and risk, your RAS will filter for those and you’ll see more of them instead. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Never Break The Final 10 Meter Rule When Investing In Real Estate Some of our favorite quotes from the show: “You see, theory is not real life.” –Michael Yardney “Be careful who you take advice from and use the final 10-meter rule to sort out who you take seriously.” –Michael Yardney “You are what you believe yourself to be.” –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

One of the most significant changes in the time I’ve been investing in property, and that’s close to five decades now, is the availability of data. When I first started investing in the 1970s there weren’t any blogs, podcasts, YouTube channels and the only way to get property data was to be part of the secret inner circle – which was then a men’s club of Real Estate agents – because the lag in publicly available data was often over a year. The estate agents were custodians of the data, because back then the Valuer-General would only publicly release property once a year. Over the last decade, there’s been an abundance of monthly data available to property investors and over the last year, most of the data houses have been providing weekly updates. But in our current fast-moving market sometimes even this is a little bit too slow. For property investors who need to make important financial decisions, the lagging available data can be an issue and the other significant challenge is understanding which data is important and which isn’t and that’s the topic of my chat today with financial adviser Stuart Wemyss. At the end of the show, you should have a much better understanding of what data you should be paying attention to and where to find it, and this should help better property investment decisions. Filtering Property Data It seems that currently every man, woman, and pet dog is upbeat about our property markets. Just look at the messages we are getting in the media. It seems that all the economists have now done an about-face and agree we’re in for strong property markets for the next few years, with some being comfortable using the word house price boom. In fact, they seem to be out doing each other to see who can come up with the most upbeat price increase forecasts. Six percent gains? How about eight percent? No, it will be double-digit growth. What about sixteen percent over the next two years! But looking back over the last few years, we know that most economists have had a very poor track record, and we know much of the information we read is not useful. So, today in my chat with Stuart Wemyss, we get an understanding of what information is relevant and what is not. The media tend to only run stories that they consider newsworthy. Newsworthy often means that the information is time-sensitive e.g. what happened yesterday or what will happen tomorrow. This short-term information does not help if you intend to own a property for many decades. So what information is relevant? Very little from the media. A good and bad property costs the same to hold. You will pay the same amount of interest with respect to the mortgages. And the income and expenses will be relatively similar. The biggest difference between a good and bad property is capital growth. That is, what will the property be worth in 10, 20, or 30 years? In this regard, when selecting a property, there are three fundamentals you must consider: Land value Scarcity Past performance There’s only a handful of important macros considerations Population growth Money supply Diversified employment opportunities Infrastructure Ignore the rest! Property investment is part art and part science, and that’s where investors who only base their decisions on data get it so wrong. I know there are a number of people out there currently saying that they research every market around Australia sitting at the computers all day. Unfortunately, what they are missing is the perspective – they have the same speed right but not the bit right – not the on the ground knowledge - you can’t get it by flying in & flying out and speaking to a few agents – perspective takes years to develop – it’s something you can’t buy. Some examples of when the data can lie to you Not enough data Not long enough time between transactions Too hard to ascertain its current value Our sales did not represent Fair market value You overpaid for the property when you purchased it Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: What property data should I be paying attention to and what should I ignore? with Stuart Wemyss Some of our favourite quotes from the show: “I think we’ve got to remember that the media’s job is not to educate you but to entertain you.” –Michael Yardney “Part of an investor’s job is to maximize their returns while minimizing their risk.” – Michael Yardney “The few who do succeed are able to do so when the pain that does come to them – they can endure it because they prepared for it.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Just like 2020 was the year of surprises many of us didn’t foresee, I believe 2021 will offer its own surprises – but this time, on the upside. There is a perfect storm of economic outcomes and that’s what I’m going to be chatting about with Pete Wargent in today’s show as we have a look at the macroeconomic big picture that will affect our property markets, our economy, and our lives in general in the coming year. It’s really only been a year since Coronavirus started to affect us. Just look where we were in the middle of last year and it’s hard to believe where we are now. We’ve had spectacular success in containing the Coronavirus. The Morrison Government build the bridge he promised to get us across the other side and federal government and state government spending killed the recession, which was the deepest since the Great Depression. We now have record low-interest rates. A sooner-than-expected arrival of vaccines. And all the above has pumped up economic growth above expectations and helped the property markets and the stock market rebound, bringing both business and consumer confidence. We have an embarrassment of riches, with our economy surging ahead, so I hope my chat with Pete Wargent will give you some more clarity about what the future holds so you can make better investment and business decisions. Economic and property trends for 2021 with Pete Wargent Our property markets don’t operate in isolation, so I believe it’s good to regularly have a look at the big picture, the macroeconomic factors affecting not just Australia’s economy, but the world economy. Australia’s V-shaped economic recovery. Australia’s economy has surprised on the upside. While technically we had a recession last year – two consecutive quarters of negative GDP growth, really the March quarter had very minor falls in GDP – there was really only one quarter, the June quarter, with a significant drop in economic activity. And boy has the economy rebounded since. Our economy is likely to keep performing well moving forward While the recovery to date has unfolded much more quickly than expected, it is important to remember that: it has been uneven and that despite recovering to pre-COVID levels by mid-2021, there remains a high degree of spare capacity in the economy. There is still some way to go and there are still risks ahead. $120 billion savings war chest is firing our economic recovery Saving is about to become unfashionable again. After rushing to build deposits during the COVID crisis, it seems we are now determined to burn through accumulated cash. What’s more, the trend is going to accelerate. New forecasts suggest that by the end of this year we will be saving less than half what we are putting away just now, and that level will be around a quarter of what we were saving at the peak of the crisis. As panic swept the broader economy last year, the national savings rate soared to unprecedented levels, hitting 22 percent — or 22c for every dollar — at its peak. To put that number in historical perspective, it meant we saved $187bn in 2020, which works out at more than the total savings over the past 3½ years. More recently the savings rate figure has started to drop, though it is still sitting somewhere near 12 percent. The Commonwealth Bank ­estimates that households have put aside $120bn more than what is normally saved in the June, September, and December quarters last year — equivalent to 6 percent of gross domestic product as overseas travel and social activities were curtailed. The bank’s analysts believe this money will be spent over the next few years, providing continued economic momentum as a good chunk of this money will find its way into consumer spending. And some of it will go to paying down debt and some will go into buying assets. We’re already seeing this in retail spending and in our property markets. RBA and interest rates There has been a lot of chatter amongst media commentators that our booming property markets will force the RBA to intervene earlier than planned and raise interest rates. But in his recent statement, RBA Governor Philip Lowe once again put these predictions to rest explaining that the surging housing market will not cause the RBA to raise interest rates. He said it would not make any sense to do so. I know the media loves headlines about rising interest rates, but Philip Lowe once again reminded us that his aim is to bring inflation sustainably within a range of 2 to 3%, and to do this we need higher rates of wages growth and in his words: “The evidence strongly suggests that this will not occur quickly and that it will require a tight labour market to be sustained for some time.” The Reserve Bank Governor emphasised this point, noting that the road to “normality” was long. Governor Lowe said that wage growth was a long way from 3 percent. And indeed inflation was a long way from sustainably being back in the 2-3 percent target band. Rising bond yields: The Governor sought to emphasise that he believes that rising bond yields are sending false signals on the inflation risk and the potential for a lift in the cash rate: “market pricing has implied an expectation of possible increases in the cash rate as early as late next year and then again in 2023. This is not an expectation that we share.” What else could our regulators do to subdue our property markets? I understand why our regulators intervene in our finance and housing market, even though I don’t always like how they do this – we saw what happened with APRA overshot the mark a few years ago, but Philip Lowe said “I recognise that low interest rates are one of the factors contributing to higher housing prices and that high and rising housing prices raise concerns for many people. “There are various tools, other than higher interest rates, to address these concerns, leaving monetary policy to maintain its strong focus on the recovery in the economy, jobs, and wages.” Big Australia vital to protect the home front: Rudd Prior to the pandemic, Australia’s population was growing faster than most other developed countries, and of course, this has now been temporarily put on hold. With unemployment still high some people are wondering whether we should open our borders quickly, or whether we should restrict immigration until all Aussies find a job. Recently former prime minister Kevin Rudd came out explaining how a Big Australia is needed on national security grounds to provide the tax and population base to increase the size of a military amid the challenges posed by China’s rise. Global economic outlook The rapid development of vaccines and their rollout has improved the global outlook and lessened some of the downside risks. The plan for further fiscal stimulus in the United States has also improved growth prospects there. Links and Resources:  Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here Pete Wargent Next Level Wealth Pete Wargent’s new book Low Rates High Returns Shownotes plus more here: The Big Picture – What’s ahead for our economy and property, with Pete Wargent Some of our favourite quotes from the show: “There’s been a significant war chest of savings that now people are starting to spend.” – Michael Yardney “I think we’ve got to acknowledge that while we’re saying Australia’s booming and the economy’s doing well and the property market’s doing well, there are still some people who are not doing well.” – Michael Yardney “The media knows this. They know we react more to negative news than positive news. So they force-feed us negative news just to get the clicks.” – 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 we move into a new property cycle, a whole new generation of people are going to become financially independent through property. So, today’s show is going to be dedicated to helping you become one of those. I’ve got two segments for you today. The first segment is a chat with Brett Warrant about 10 questions you should ask yourself when you’re going to buy an investment property – whether you’re a beginner or an experienced investor. Then, in my next segment, I’m going to share five things that you can do today to become more successful tomorrow. 10 things to consider when buying an investment property With our housing markets entering a new cycle - a new phase of strong growth - there are more people interested in getting into property investment. Close to 50% of investors who buy a property sell up in the first five years and 92% never get past the first or second property. In fact there around 1.9 million Australian investors never get past the first or second property and less than 21,000 Australian investors only six or more properties So how do you succeed, how do you get into that small group of investors who build a substantial property portfolio? Currently, there are so many options out there. Everyone seems to have become a property expert with an opinion of how to create wealth through property. And, I don't know if you've noticed - many of their suggestions are conflicting. So whether you’re a beginning property investor or an experienced investor, I’d like to help you take advantage of this new property cycle by discussing 10 questions that I believe all investors need to get their head around with Brett Warren, National Director of Metropole Properties, and my business partner who is based in Brisbane. What do I want to achieve? Is it money? Wealth? Financial freedom? Maybe all of the above! Remember the bricks and mortar are not really the end goal; rather they’re just the vehicle you choose to get there. So firstly, identify your end goal and then formulate a plan to get you there in a time frame that works for you. Unfortunately, most investors don’t have a plan and that’s why they get lost along the way or get distracted by the latest investment fad or the next “hot spot.” And if they do have a plan, I've found they rarely review it to make sure they’re on track. Maybe you don’t know what the future will hold – but you do know you need a substantial asset base. What is my preferred strategy? Once you know where you are going, you need to implement an investment strategy that helps you get there. Since you can’t save your way to wealth, my goal is to build a substantial asset base through capital growth. Where should I buy? Location is critical to the long-term performance of your investment. I look for suburbs that have always outperformed the averages or one’s going through gentrification. These are generally lifestyle suburbs in major capital cities close to the CBD, amenities, or the water. And the significance of the neighbourhood has only become more important. In urban planning circles, it’s a concept known as the 20-minute neighbourhood. What type of property? This will depend upon your budget and while, in general, houses deliver stronger capital growth than apartments, this has a lot to do with the location of your property. I'd rather own a villa unit, townhouse, or apartment in a great neighborhood in an inner or middle ring suburb than a house out in the sticks Today more people are trading their backyards for courtyards and balconies to be situated in the right locations. 6 Stranded Strategic Approach – only buy a property: That would appeal to owner-occupiers. Not that I plan to sell the property, but because owner-occupiers will buy similar properties pushing up local real estate values. This will be particularly important in the future as the percentage of investors in the market is likely to diminish. Below intrinsic value – that’s why I’d avoid new and off-the-plan properties which come at a premium price. With a high land to asset ratio – that doesn’t necessarily mean a large block of land, but one where the land component makes up a significant part of the asset value. In an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area including gentrifying areas. With a twist – something unique, or special, different or scarce about the property, and finally; Where they can manufacture capital growth through refurbishment, renovations, or redevelopment rather than waiting for the market to do the heavy lifting as we’re heading into a period of lower capital growth. Should I buy something old or new? More often than not, new or off-the-plan apartments are a “box” in a high-rise monolith. The problem here is that you pay a premium to the developer and miss out on the first decade or so of capital growth. At the same time, the majority of owners in the building are likely to be investors. I prefer buying where owner-occupiers, who look after the building better, predominate. This gives you the potential to not only increase your rental income but also “manufacture" some capital growth. When should I buy? There's no sense in trying to time the market, even the experts can't get it right. Instead, the right time to buy your next investment property or home is when you're in the financial position to do so. What can I afford? Before you start looking at what to buy, you need to know what you can afford to buy. Get a loan pre-approved and make sure you’ve set some funds aside for acquisition costs, holding costs, and a financial buffer for a rainy day or rising interest rates. Michael: Your budget – that determined by the bank Location – we are not prepared to compromise on that The type of property in the location How will I set up my purchase? It’s important to own your investment property in an entity that protects your assets and legally minimizes your tax. Whether you buy in your own name, your super fund, or a trust, you need to be aware of what it will mean for you and your family, now and in the future. That's why it's important to get independent finance and structuring advice before you buy your property. Who should I ask for help? If you are the smartest person in the room, you are in the wrong room! The real estate game is a team sport, requiring expert input and advice from a qualified accountant, a smart solicitor, a finance broker, an independent property strategist, and a mentor who will help set you up for a win. In other words, to secure your financial future you’ll need much more than just a buyer’s agent or a property strategist. Should I take advice from my friends and family? In general, the answer is - no! Not unless they're a particularly smart investor having invested successfully through a number of property cycles. This is because “the crowd” is usually wrong. As our real estate markets pick up and the cycle moves on, a whole new generation of investors will enjoy the prosperity property can bring. If you ask the right questions you could be one of them. 5 things you can do today to become more successful tomorrow You know what so interesting about success? When I look at people around me who are ultra-successful—I mean, whether it’s in their business, their investments, with money or in their physical health or maybe it’s in their relationships —it’s not that they’re any smarter. It’s not that they’re any more talented. They weren’t born with something special. Instead, they simply have a different mindset. They think differently and you’ve heard me say it before – your thoughts lead to your feelings; your feelings lead to your actions and your actions lead to your results. For these successful people, their outside world – the results you see - is a reflection of their inside world – the way they think. Here are five ways you can think differently to help make you more successful. The average person thinks “I can’t”. Successful people think “How do I?” Currently, many people are saying, “I can’t afford to get into the property market – it’s too expensive.” Yet a small group of people is asking a better question “How can I get into the property market?” and by doing that they spend less than they earn, save a deposit, educate themselves to become financially fluent, or take advantage of first homeowner grants or the 5% first home buyers scheme. The average person thinks “I want to”. Successful people think “I will”. In Star Wars Yoda famously said: “Do. Or do not. There is no try.” There is a massive difference between desire and commitment. And that’s why if you want to become successful, an important mindset shift is moving from “I want to do it” to “I will do it.” The average person thinks “It’s not my fault.” Successful people think “It’s my responsibility.” There is no such thing as a victim. Yet when things go wrong, most people love to say, “It’s not my fault.” In contrast, successful people take responsibility. Fact is, it doesn’t matter whose fault something is. Successful people take ownership and responsibility for everything in their life. The average person thinks “I got lucky.” Successful people think “I created my own luck.” A lot of people think that rich people are just lucky. Successful people are lucky. Great athletes are lucky. But talk to any of those rich people, those successful people, or the great athletes and you’ll find out it’s not luck. Sure, we occasionally get random good luck or bad luck, like winning the lottery or receiving an inheritance. However, the rich and successful people manufacture their own luck – they’re in the business of creating luck. They do certain things every day that creates the opportunity for good luck to occur in their lives. The average person thinks “It happened.” Successful people think “I made that happen.” A lot of people think that everything in their life just happened by accident. On the other hand, successful people realize that nothing happens. They understand the principle of cause and effect. They realize they are creating their future every day by the things that they do today. Just like you have created what’s happening to you today by things you did quite some time ago. For example, you are reading this blog today because a while ago you were interested in more success or money or property investment and you subscribed to my blog. Everything that happens is a result of something else. But the good news is, you can change your future by changing your way of thinking today and changing your actions today. So, if you’re unhappy with any part of your life, realize that you are where you are today because of all the things you’ve chosen to do, and the things you’ve chosen not to do. Now, rather than taking this as a negative, look at the positive side. So, the lesson from this is to stop treating your life like everything just happens. Start creating a new future by thinking differently and developing good habits. What’s the quickest way to do this? There is a shortcut, get a good mentor who can see your blind spots and who can teach you different ways of thinking. By the way that’s exactly what happens to those people who join us at Wealth Retreat each year. Join me for five transformative days on the Gold Coast from June 12th to 16th and get the one-on-one private mentorship you need to achieve your most ambitious goals and dreams. Not just in property, but in business and in life in general, because the aim of Wealth Retreat is to create Lifetime Wealth and leave a legacy. When you join us you will get: Mentorship- You’ll have the opportunity to interact one-on-one with me and our guest experts so we can help you gain deeper insight and achieve your specific goals in property, business, and life. Masterminding- You’ll spend several hours a day brainstorming and getting ideas, advice, and solutions to your challenges from a hand-picked group of high-achievers. Networking- You’ll have plenty of time to build relationships with the other participants during breaks, at meals, and at night, so you can connect on a deeper level and benefit from their input and expertise. Fun– the days will be very full, but at night we’ve got some surprises for you. And if you would like to get the highest possible level of support for your most ambitious life and business goals, I encourage you to join me there! You can learn more about this life-changing retreat here. Don't count yourself out... When you surround yourself with such motivated, energized, spiritually charged people, you tap into the power of the group and become more energized and powerful yourself. There’s no limit to what you can accomplish with the support and encouragement of such incredible people! Please note that to ensure the best possible experience, Wealth Retreat is limited to a small number of participants only. Learn more and register your interest today. I look forward to helping you perfect the life of your dreams! Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Brett Warren – Director of Metropole Property Strategists Learn more about Wealth Retreat here Shownotes plus more here: 10 Critical Questions All Property Investors Should Ask Themselves with Brett Warren Some of our favourite quotes from the show: “You’ve got to know what the end game is, and it’s different for everybody and it depends how long your journey is.” – Michael Yardney “My preferred strategy is to invest for  capital growth.” –Michael Yardney “The answer is not just to convince the logical side of your mind that you’re going to do something, but you also need to work on the unconscious part of your mind. The emotional side.” –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 no doubt that our property markets are in a broad-based boom, with almost all segments, other than the inner-city apartment market showing strong property price growth. And the media is having a field day whipping up a frenzy of emotions with headlines causing some buyers to worry that the housing market is running away from them. In fact, FOMO (fear of missing out) seems to be a common theme around Australia's property markets. But the general media and certain commentators on social media are worrying home buyers and investors by speculating that interest rates are about to rise or that unemployment will escalate to 8% when JobKeeper ends, or that everybody is moving to the country and city property values will be affected. So in today’s show, I want to bust some property myths in two segments. You probably know that I host a regular weekly Property Insiders video on my YouTube channel where Dr. Andrew Wilson gives sensible, down to earth commentary about what’s happening in the property market, and the audio recording of last week’s video will be the main feature of today’s show but first I’d like to bust some of the media myths about regional Australia’s property markets, who’s moving there and whether you should consider investing in regional Australia. The Regional Australia Myth I’d like to start by discussing the myth being promoted in the media that investing in regional Australia is a great idea. First, that’s a silly comment – there are so many different regional markets, as you know I don’t suggest investing in the Sydney property market or the Brisbane property market because even within capital cities there are many different markets divided by geography, price point, and type of dwelling. So, therefore, just suggesting investing in regional Australia makes little sense. Then there’s the argument that some put in the media that this particular town in regional Australia has performed better than the Sydney property market. Again, that’s a silly comparison, because the regional town may have 5, 10- 20,000 people in it and Sydney has 5 million people in it. A better comparison would be the long-term performance of a particular regional town against a high-performing capital city suburb. When it comes to investing, you shouldn’t be considering how you want to live, you should be investing in numbers, stats, demographics, and evidence and that’s what I’m going to share with you in a moment. What about migrants? We know that prior to the Covid pandemic and Australia shutting its borders, the population was growing faster than almost every other developed country and more than half our population growth of almost 400,000 people each year was coming from immigration. Property commentator Michael Matusik wrote a recent blog discussing the myths about regional population growth. Now there is no doubt that there is a small cohort of people who now want to live in regional towns within commuting distance of big capital cities because they have found they can work from home either part-time or full time, but Michael Matusik asks, “Is this what has been driving our regional property markets?” Matusik suggests that the real reason why the regions have seen an increase in net internal migration over the last 12 months is because people who would normally have moved from the regions to the capital cities are (for now) staying put. And the ABS statistics suggest that this is true. Net internal migration to the regions was 36,500 last year, which was up 14,000 or 62% on the year before. Now that sounds impressive, doesn’t it? But you know how you can make numbers lie and twist them to make your point? You see… net migration is worked out by comparing those that move into an area against those that leave the same place during the same time frame. Firstly, that the overall level of arrivals to, and departures from, regional Australia has fallen over the last 12 months. This is because there are no overseas migrants arriving in Australia. This impacts both the capital cities and regional Australia. Secondly, the ABS statistics show that there has been little change in the number of people moving from the capital cities to the regions, whilst on the other hand, there has been a big increase in the number of regional residents who haven’t moved. This trend increased during 2020 as certain Australian States implemented increasingly strict covid-related lockdowns and other restrictions. Around 70% of Australians live in our six main cities.  I don’t think this will change because of the pandemic. In short, the capital cities are where the jobs and the services that people want are located. The majority of high-paying jobs that are going to be created are going to remain in capital cities. Many regional residents have put their move to the capital cities on hold last year, and as a result, I believe we will see a big snapback to positive net migration to the capitals once the covid vaccines roll out and travel-related restrictions cease. Unless major money is spent on regional infrastructure and this amount rivals the amounts being spent in the capitals, any population movement to regional Australia will be modest at best. Matusik puts it well: “Despite recent weasel words suggesting otherwise the decision-makers must think this too. Ask yourself, if we were truly going to see a regional resurgence, then why is almost all the existing, and proposed, infrastructure projects focused on the major capitals and mainly in the inner-city areas within those cities.” if your investment budget is limited, and that may mean you can only buy one to three or four investments in your lifetime – you need to buy high growth properties in areas where the demographics will be able to afford to pay more in the long term pay more to buy properties and pay more to rent your property – don’t fight the big trends. Some of the Topics Discussed in My Chat with Dr. Andrew Wilson: The housing markets are surging Rental markets have been fragmented, with a disparity between house markets and unit markets Rental growth is continuing for houses, but on the slide for units Business investments have been coming back The government quickly pulled the country out of the recession that it purposely caused There has been strong growth in job ads, signaling that unemployment could fall quickly Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Read Michael Matusik’s blog mentioned in the show here Join us at Wealth Retreat 2021 on the Gold Coast in June – learn more here Shownotes plus more here: Busting media property myths with Dr. Andrew Wilson Some of our favorite quotes from the show: “Don’t believe this media myth that investing in regional Australia is the right thing to do.” – Michael Yardney “It’s unlikely that those inner CBD high rise towers will start filling up until our international borders are open, students come back, Airbnb comes into the market.” – Michael Yardney “The problem is that people are listening to those “experts” on YouTube and “experts” on Facebook and they’re being a bit worried by them.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Have you considered getting involved in property renovations? If so, then today’s show is just for you. Making a tidy profit renovating a property seems like an attractive proposition, doesn’t it? And that’s why more real estate investors are turning to renovations: you know, buy low, renovate cheaply, add substantial value. That’s the aim of their game. Sounds simple enough. But it’s not really that simple. Sure, anyone can renovate, but not everyone can renovate for a profit. If you’ve been reading my blogs and listening to my podcast, you know that my preferred investment strategy is to add value. It is to manufacture growth through renovation and development. So in today’s show, I chat with Greg Hankinson, director of Metropole Constructions. Greg has completed thousands of renovations. We’re going to give you some tips and share some traps to avoid if you’re going to get involved in property renovations. And at the end of the show, I’m going to share my mindset moment with you. Renovations Insights and Mistakes The BRRRR strategy Buy, Renovate, Rent, Refinance, Repeat Flips flop You need to manufacture significant capital growth - upside to cover the costs and unless you do a structural renovation this is too hard to achieve – can’t achieve with cosmetic renovation. Patients take time, cost more, require permits and the associated costs could easily add 50% to your renovation budget. With cosmetic renovations, you can’t really get two dollars for every dollar you spend Why they flop - Transaction and holding costs, tax, unrealistic expectations, and flipping in a fickle market   Which tasks to outsource Anyone can renovate, but that doesn’t mean they can make a profit, so let’s look at some tips to make your renovations more profitable. What needs licenses – the electrician, plumber, any building works over 5000 in Victoria and different in other states Hire a project manager; don’t do the work yourself. Mistakes: Choosing the wrong location Do you need the right market location where there is a significant differential value if you renovate.? This is unlikely in cheaper blue-collar or regional areas. Become an expert in your location can’t rely on Internet reports avoid Main roads Wrong Property Cosmetic renovations – must be 20+ years old and of significant value, a lick of paint is not enough Structural – probably 50+ years old – must have good bones Refurbish versus renovate   What’s the difference? The refurbishment has no direct equity creation no additional capital growth but it does increase the rental returns and possibly some depreciation benefits Refurbish and not renovate? When a good property needs refreshing, kitchen bathrooms are in good nick, all the basics are sound, when if you renovated it would be a risk of overcapitalizing Not getting the appropriate permissions Check the permissions required Council & building permits? Owners corporation? Avoid overcapitalizing It’s very easy to find a property that needs a renovation, but not so easy to find one that will reap a profit. Work backward – establish a post-renovation market appraisal on the property, subtract the purchase price, associated costs, interest, and a healthy buffer and profit margin. What’s left is your renovation budget. As a rule, keep the renovation budget to 10% of the market value of the property Not allowing a sufficient contingency amount Once a budget is established, allow a contingency based on your experience level and the extent of the renovation works. Allow a little more if structural works or there are planning/building approvals required and a little less if the works are purely cosmetic. Ballooning budget Unreliable tradesmen, deadlines slipping through your fingers like sand, and alterations to the plan can quickly add up to cause your renovation budget to blow. Planning for delays and allowing for contingencies is critical to a successful renovation. Unexpected and Invisible costs From finding asbestos to hitting hard stone when excavating, these are just some of the unexpected costs that can come out of the woodwork when your renovation begins. These additional costs burn into your wallet, but removing the issues do not add perceived value to the property. Tailor the renovation for the target market  Becoming an expert in the area. Understand local demographics 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.  It’s not how you want to live – think…The Block First impressions matter The wow factor – 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 sought after. Often it's the little things that can make or break a successful renovation. Neutral colors allow tenants to create their own identity with their belongings. Dominant colors and textures tend to close in the wall and make spaces feel smaller than they are.  If you’re doing cosmetic renovations make sure the changes you make are highly visible Don’t waste money rewiring or replumbing (OK for structural) New floor coverings, carpets polish floorboards paint, blinds, air conditioning Make people think you’ve spent more money than you have Houses - cement render the exterior Kitchens and bathrooms sell properties Beware of diluting your dollar by doing half the job If you renovate the kitchen but leave the original tired and rundown bathroom, it will de-value the kitchen and vice versa. If the budget doesn't allow for both of them, it may be worth deferring renovation works 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 glamorize 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. How do you value your time? Many people do not factor in the cost of their own time and stress when ‘running the numbers’. Be prepared to set aside significant portions of your time for planning, making/taking phone calls, wrangling, and negotiating with suppliers, making decisions. If renovating is not your day job, this could mean hours after work and on weekends. Could that time be better spent with your family? Or doing your regular job? Remove the emotion Adding value to an investment property should be run like a business. There's no room for latest fads 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 maximizing both the rental return and capital value of that property.  Get a good team around you Renovation involves coordinating various tradespeople - who are busy and unreliable 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.  Don’t be stingy Stretch – you normally get only one chance per property every 20 years - do it right - don’t be cheap Thrifty is good, cheap is bad There's a lot of cheap products in the market place these days, especially online. In my experience, cheap stuff is cheap for a reason and will cost you more in the long term. Take engineered timber flooring for example; you can buy an imported laminated timber board from your local hardware store starting from about $19 that has a lifespan of 1-2 years if you’re lucky.  Same deal with paint, carpet, window dressings etc. Cheap just doesn't last and it's a false economy to suggest otherwise.  Ask yourself the tough questions "Do I have time to execute this renovation effectively?" If the answer to this "No" or "I think so?" Consider paying a professional to manage it for you. The additional cost will most like be offset by the works being completed in a more timely manner, to a higher standard, and with a guarantee.  Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Greg Hankinson Director Metropole Constructions Why not see how Metropole Constructions can help you. Shownotes plus more here: Renovations are a great way to lose your money if you make these mistakes | With Greg Hankinson Some of our favourite quotes from the show: “I know last year, during the difficult times of letting properties with COVID, our team at Metropole constructions did a lot of refurbishments and quite a few renovations, and those properties, when they got put back onto the market, actually got leased very quickly.” – Michael Yardney “It’s very easy to find a property that needs renovation, but it’s not as easy to find one where you’re going to reap a profit at the end.” – Michael Yardney “You get one chance to do this every 20 years or so. Do it right, don’t be cheap.” – 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 we move through 2021, we’re still getting regular reminders that even though life is more normal, the effects of Coronavirus will be with us for a long time. While some people are still looking back in the rear vision mirror to see what lessons we can learn to give us some guidance for the year ahead, today I’ll be looking forward into the future as I chat with leading demographer Simon Kuesetenmacher about what he calls the Big Shift – some major demographic changes that you should be aware of if you’re interested in the property or if you’re in business But first, let me give you a couple of quick lessons from 2020 to help you take better advantage of our property markets. Timing the market is hard. Anyone who tried to time the top or the bottom of our property market over the decades I’ve been investing has usually missed out, so I would suggest spending your efforts finding the best asset you can rather than trying to time the market. Don’t try and fight the RBA or our government.If you think about it, it’s a government job to look after its constituents and protect them – not just by providing police and hospitals and the judicial system; but also protecting their jobs and the value of their biggest asset - their home. Economic depressions can be avoided. Our regulators have learned a lot over the last couple of decades and 2020 proved it - a rapid, large and well-targeted economic policy response can protect an economy from a significant shock and enable it to rebound quickly when the threat abates. Be careful who you listen to and turn down the noise. Last year investors were bombarded with information and opinions around what the coronavirus would mean to our economy and our property markets but much of this was just noise. Now that I have shared some of my lessons with you we are going to hear what Simon Kuestenmacher has to say, and even though we have discussed some of these concepts in previous podcasts, I’m sure you’ll get a lot out of my chat with him as he introduces some new concepts we haven’t discussed before that I think will help give you some clarity on what’s ahead. And as always, I will share my mindset message with you at the end of our show. There’s a big shift ahead for our property markets If you’re like many Australians you’re probably wondering what’s going to happen to life beyond coronavirus. What's going to change in the way we live, work, and organize our cities? The simple answer is... quite a lot! And if you're a property investor, or a business owner you must understand how Australian cities are reshaping to stay ahead of the game. That’s what I going to chat about today with Simon Kuestenmacher, one of Australia’s leading demographers as I ask him for some insights into what his research suggests is ahead. Simon is Director of Research at The Demographics Group, a columnist with The Australian, and a regular guest on this who is globally recognized as a rising star in the field of data management and insight and a regular guest here on my podcast. Just to put some context to our chat… It’s easy to forget that one year ago we have a government dedicated to balancing the budget and bringing in a surplus. Our property markets were rebounding, and business owners would looking forward to a great year ahead. Then look what happened in 2020 - we experienced a pandemic, a lockdown and a recession, and then a rebound. Fortunately, we controlled the health issues better than almost every other country in the world, and it seems that our government has minimized the impact of the coronavirus cocoon induced recession. But the dynamics of our society have changed considerably. So, what next?  Global context What’s happening in the world economy? Australia’s economy has recovered remarkably quickly International capital and international talent will still want to come to Australia Based on sheer economic data, investors might want to invest in Australia, New Zealand, S. Korea, and maybe Taiwan Local Context Lower population growth Some sectors of the economy are booming and others floundering Despite COVID & temporary low migration, the pie keeps growing in the 2020s. Demographics drive particularly high demand for family-sized homes. Low demand for small apartments before migration amps up again. COVID and working from home will reshape our cities. CBDs perform poorly for a few years; outer suburbs & regional towns benefit from millennial families seeking sizeable homes. Millennial values will transform suburbia. Expect more demand for active transport, hipster cafes, and family-friendly spaces. We will want future homes to be pandemic-proof The rise of the 20-minute Neighbourhood Pre-Corona Fried Egg – Post-Corona Scramble Egg Location is critical to the long term performance of your investment. It seems that in our new “Covid Normal” world, people love the thought that most of the things needed for a good life are within a 20-minute public transport trip, bike ride or walk from home. The ability to work, live, and play all within 20 minutes’ reach is the new gold standard desirable lifestyle. Imagine being able to carry out your daily activities within a 20-minute walk from home.  All the things you need in a day would be just a short walk away. Things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs. In urban planning circles, it’s a concept known as the 20-minute neighborhood. What type of property will be more in demand post-COVID-19? WFH will mean different desires – zoom room, gym, extra room for home office Some will see high rise apartment towers as “vertical cruise ships” - high-rise buildings were designed to organize as many people as possible in one place. With busy lifts, shared hallways, and communal facilities like laundries and garbage disposals, high-rise living is the ideal breeding ground for the virus, as we’ve seen both in Australia and overseas. So, it stands to reason that the buyers of 2021 and beyond might not be so keen to live in an apartment and be breathing the same air and touching the same lift buttons as hundreds of other people. Instead, they may prefer to purchase standalone dwellings that they can barricade and sanitize to their heart’s content in the event of another wave of the virus. Similarly, we’ll want to be able to separate work and living spaces. We all need a Zoom Room nowadays. I can only imagine what a nightmare the stay-at-home orders must have been for parents with small children living in apartments without a garden, or for gym junkies forced to substitute cans of baked beans for their usual weights in their at-home workouts. As such, room for a home gym setup, space for the kids to do their karate or dance classes online, and a reasonable outdoor area for the family to get some fresh air and vitamin D are likely going to shift from the “nice to have” category into the “non-negotiables” list for owner-occupiers. The hollowing out of the Australian workforce Education determines your income and spending capacity The increasingly polarized workforce drives property prices and geographical segregation. Low- and high-income workers demand similar things from their homes but are driven to different locations. That puts social cohesion at risk. Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group As our markets move forward why not get the team at Metropole to build you a personalized Strategic Property Plan – this will help both beginning and experienced investors. Shownotes plus more here: Successful property investors must understand this Big Shift, with Simon Kuestenmacher Some of our favourite quotes from the show: “How often have you heard me say over the last couple of years that you shouldn’t make 30-year investment decisions based on the last 30 minutes of news?” – Michael Yardney “Sections of our economy are doing pretty nicely, and it’s the demographics that are going to drive demand.” – Michael Yardney “Not one person said you should choose your work based on your desire for future earnings.” – 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