DiscoverThe Michael Yardney Podcast | Property Investment, Success & Money
The Michael Yardney Podcast | Property Investment, Success & Money
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The Michael Yardney Podcast | Property Investment, Success & Money

Author: Michael Yardney; Australia's authority in wealth creation through property

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Are you looking for financial freedom or more choices in life? You're in the right place. Twice each week Michael Yardney shares smart property investment strategies as well as the success and personal finance secrets of the rich, in around 30 minutes.
MIchael has been voted one of Australia's top 50 Influential Thought Leaders and while he is best known as a real estate investment expert, he is also Australia's leading expert in the psychology of success and wealth creation and a #1 best selling author of 9 books.
Michael frequently challenges traditional finance advice with innovative ideas on property investing, personal finance and wealth creation.
His wisdom stems from his personal experience and from mentoring over 2,000 business people, investors and entrepreneurs over the last decade.
Michael's message will be priceless regardless of the size of your real estate investment portfolio - whether you're just starting out or an experienced investor wanting to move to the next level, he will provide you a roadmap for real estate investing and financial success.
http://MichaelYardneyPodcast.com
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In today’s podcast we're venturing into a fascinating area that intersects with both wealth creation and the human psyche. We've all heard of self-sabotage, but have you ever wondered why some of the most intelligent and capable individuals hit an invisible ceiling in their property, investment, or business ventures? Why do some people, despite their knowledge and skills, only reach a certain level of success? Well, today, we're diving deep into what I like to call your 'wealth thermostat' - a concept that suggests our early experiences and beliefs set a sort of psychological temperature for the level of wealth and success we're comfortable with. Joining me today is Jackson Milan – The Wealth Mentor. Jackson has a unique insight into how our childhood experiences and subconscious beliefs shape our financial destinies. So, whether you're looking to break through your own financial barriers, understand the psychology behind wealth creation, or just curious about why we do what we do with our money, this episode is for you. Links and Resources: Michael Yardney Jackson Millan – The Wealth Mentor at Aureus Financial Aureus Wealth Scorecard Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports = www.PodcastBonus.com.au Join us at Wealth Retreat 2024 www.WealthRetreat.com.au Shownotes plus more here: Breaking Your Wealth Barrier: Resetting Your “Wealth Thermostat” with Jackson Millan
Now inflation has been tamed and interest rates have peaked, many market commentators and property economists are updating their forecast for 2024. While the media loves sharing short-term forecasts, the longer-term outlook is more important for investors as it better aligns with their investment horizon. Investors should consider where the market will be in 10 years, rather than where interest rates will be in six months. However, in today’s podcast, I discuss the dominant influences on our housing markets for 2024 with independent financial advisor Stuart Wemyss, founder of Prosolution Private Clients. We’ll break down the influence of inflation and interest rates on real estate trends, while also considering the broader implications of economic changes.   Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game & Investopoly 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 2024 – www.WealthRetreat.com.au Shownotes plus more here: How interest rates are reshaping our property markets in 2024, with Stuart Wemyss    
In today’s show I'll discuss the complexities of Australia's housing market with my guest Mike Mortlock, the director of MCG Quantity Surveys. In our conversation today, we spoke about lots of interesting things that will give you some insights into our housing market. In particular, we explore a disturbing “tall poppy syndrome” narrative that’s taken place over the last little while. It puts property investors in the role of villains who are against the Australian dream of home ownership, and we believe this is an unfair and inaccurate portrayal. We explain why that’s inaccurate and tell politicians it’s time to stop picking on property investors.  We also talk about the rental crisis, what's ahead for our property markets, and Mike’s views on what will happen with AI and the property markets. 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 Mike Mortlock – MCG Quantity Surveyors Get a bundle of eBooks and reports = www.PodcastBonus.com.au Join us at Wealth Retreat 2024 www.WealthRetreat.com.au Shownotes plus more here: Stop picking on property investors with Mike Mortlock  
  Have you set big goals for yourself in investing or business in 2024? Is financial freedom part of your plan? Today’s show is a continuation of a two-part series where Mark Creedon and I explore 18 Wealth Lessons from Morgan Housel’s great book The Psychology of Money. Housel tells us about the principles of behavioral finance rather than property strategy or finance tips. The psychology of investor behaviors can help you understand why some make successful moves while others don’t, and help you create the right wealth habits and mindset for yourself. In the last show, we discussed 9 wealth lessons in the first 9 chapters of the book. Mark and I continue on today with the rest of the chapters. No matter where you are on your financial journey, today’s show will help you on the way to financial freedom and property, investment, and business success. Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join Metropole’s Mastermind Business Accelerator 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 Subscribe to Mark’s Mastermind for Business Podcast here Get a bundle of eBooks and reports – www.PodcastBonus.com.au Join us at Wealth Retreat 2024 – find out more and register your interest – www.WealthRetreat.com.au Shownotes plus more here: Pocketing Prosperity: Exploring Morgan Housel’s Wealth Wisdom Part 2
At the start of a new year, forecasters come out of hibernation with all of their predictions for what’s ahead of us. Property investors always want to know what’s going to happen in the future, but when you look at their predictions in the past, their track record leaves much to be desired. Should you really  pay attention to forecasts? I’ll discuss that in today's episode with Brett Warren, National Director of Metropole Property Strategists. While we’re at it, I want to make 10 forecasts for the decade ahead and also talk about 10 things that will remain the same in property. Links and Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports = www.PodcastBonus.com.au Join us at Wealth Retreat 2024 – express your interest here – www.WealthRetreat.com.au Shownotes plus more here: 10 property forecasts for the next decade and 10 things that will stay the same With Brett Warren  
Today’s show is aimed at helping you become a better investor, entrepreneur, or business person with the help of the wealth lessons in Morgan Housel’s book, The Psychology of Money. Rather than property or finance strategies, Housel’s book is about the principles of behavioral finance. Understanding the effects of psychology on investors and financial markets can give you important insights and help you overcome the biases that are holding you back. Listen in as Mark Creedon and I explore quotes from Housel’s book and explain why investors sometimes seem to make bad decisions or work against themselves, and how you can avoid falling into these pitfalls. We’ll cover each chapter over two episodes of the Michael Yardney Podcast Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join Metropole’s Mastermind Business Accelerator 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 Subscribe to Mark’s Mastermind for Business Podcast here Get a bundle of eBooks and reports – www.PodcastBonus.com.au Join us at Wealth Retreat 2024 – find out more and register your interest – www.WealthRetreat.com.au Shownotes plus more here: 18 Wealth Lessons from “The Psychology of Money” by Morgan Housel with Mark Creedon
Knowing what you know now, what would you have done differently in 2023? In this episode, we reflect on the pivotal lessons of the past year, providing 23 key insights that have reshaped our real estate investment strategies. From the intricate analysis of diverse Australian property cycles to the crafting of tailored strategic plans, we dissect the forces influencing market dynamics and how to leverage them for wealth accumulation. Emphasizing the significance of risk management, asset diversity, and long-term planning, we delve into the marathon journey to financial independence through property investment. Alongside practical investment wisdom, we also touch on the philosophical, advocating for contentment and gratitude in our pursuit of success. This episode is not just a treasure trove of investment advice, but also a reminder of the importance of aligning our financial goals with personal fulfillment. And as I share these lessons with you I hope they'll give you some direction and certainty in the challenging markets ahead. The Investor's Compass: 23 Vital Lessons in 2023's Real Estate Market With a focus on the Australian real estate landscape, these 23 lessons provide a comprehensive guide to building a resilient and profitable property portfolio. Listeners are invited to explore the lessons learned from the past and how they can be applied to ensure investment success in the current year. 1. Expect the unexpected The biggest risk is the one that no one sees coming. If no one sees it coming then no one is prepared for it and if no one is prepared for it, its damage will be amplified when it arrives. 2. Focus on the long term It’s not a good strategy to make 30-year investment decisions based on the last 30 minutes of news. 3. It’s the media’s job to entertain you – not educate you Negative headlines drive clicks and views and get eyes on advertiser content. That doesn’t mean they’re reliable. 4. Take economic forecasts with a grain of salt It’s often the things you can’t predict that make the difference, while the things you can predict don’t have as big an impact. 5. Don’t believe the doomsayers There will always be somebody wanting to stall the aspirations of their fellow Australians who are looking to take their financial futures into their own hands and do something about it. 6. No one really knows what’s going to happen to the property markets While it’s important to have mentors, make sure you’re listening to somebody whose opinions are based on successfully investing through multiple cycles. 7. There is no such thing as the “Australian property market.” There are multiple markets in Australia, and each state is at a particular stage of its own property cycle within each state multiple submarkets depend on price point, geography, and type of property. 8. Don’t try and time the market If you buy the right investment-grade assets, time in the market is much more important than timing the market. 9. The crowd is usually wrong Market sentiment is a key driver of property cycles and one of the reasons why our markets overreact, overshooting the mark during booms and getting too depressed during slumps. 10. Property investment is a game of finance with some houses thrown in the middle Strategic property investors have a financial plan to buy themselves not only real estate but also time. 11. You need to plan Attaining wealth doesn’t just happen, it’s the result of a well-executed plan. 12. Invest for Capital Growth Cash flow is important and will keep you in the game, but it’s capital growth that gets you out of the rat race. 13. There will always be reasons not to invest Focus on your long-term goals and remember that the year’s crises are part of the normal course of history. 14. Property investment is risky in the short-term, but secure in the long term 2022 reminded many property investors that real estate is not a way to get rich quickly. Those who stay in the property game benefit from the power of compounding growth which builds wealth but takes time. 15. Plan for the worst and look forward to the best There will always be those X factors that crop up and affect the market. Protect yourself by planning well, but also planning on the plan not going according to plan. 16. You can't rely on one stream of income Rather than relying on your job as an income source, become financially fluent, learn to invest, and develop multiple streams of income. 17. There are always risks associated with investing Don’t be afraid of failing, because the biggest risk is not doing anything to protect your financial future. 18. Cautious optimism is better for your investment health than perma-pessimism. But having said that, optimists are more successful in all areas of life than pessimists. 19. Time is a limited resource – don’t waste it You can lose money and get it back again, if you’re sick you can often get your health back again, but once the time has gone it is gone and is irretrievable. Start to capitalize on the time you have and get a whole lot more done. 20. The only certainty is change Changes are a normal part of life; the problem is most of us don’t like change – we like certainty. However, learning to expect change has brought me hope during challenging or unexpected life events. 21. Worry Better Worrying about the right things can motivate you, but if you find it unproductive, try to take your mind off things by getting engaged in other activities. 22. This too shall pass I've learned that making long-term investment decisions based on short-term concerns is not a recipe for success. 23. 2023 was the year of AI Moving forward, it's likely you will be utilizing tools and platforms that should streamline your investment process, provide valuable insights, and manage your properties efficiently. The episode underscores the idea that success is not just about acquiring assets but also about meticulous planning, understanding market trends, and preparing for the unexpected. Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports – www.PodcastBonus.com.au Join us at Wealth Retreat 2024 on the Gold Coast in April 2024 – click here to find out more Some of our favorite quotes from the show: “I guess one way of looking at the media is to imagine how much stuff you'd have to make up if you were forced to talk 24-7. Remember, that's really what watching the financial news on TV or in the media is like.” – Michael Yardney “So I guess the message from this is remember that each property boom sets us up for the next downturn.” – Michael Yardney “I think the first thing you should do is practice noticing what's great about what you've got.” – 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 want to share some top wealth-creating insights that Brett Warren and I gained at Wealth Retreat. This is Australia’s number one learning and networking event for already successful property investors, businesspeople, and entrepreneurs, which we held on the Gold Coast in April last year. As I spoke to many of the attendees from previous years, I was blown away and humbled by the feedback as they explained how Wealth Retreat had changed the way they handle their investments, business, and in fact many aspects of their life and how it was the best event they had ever attended. So, what did they learn? That’s what we’re going to discuss today. Wealth Retreat Lessons Last year’s Wealth Retreat on the Gold Coast has now been and gone. There were 100 successful property investors, business people, and entrepreneurs in the room. And while they learned some great lessons from the world-class presenters up on stage, they also learned from the other guests over the 5 days. After all, how often do you find yourself in a room full of successful, like-minded people, that walk and talk the same language? Opportunities like this are few and far between and not to be missed. So today, I’m joined by Brett Warren, national director of Metropole who’s been to Wealth Retreat over a dozen times, to see what lessons he learned, or re-learned, that he could share with you. Lesson 1 – Creating Wealth is a Process, Not an Event When I started my wealth journey, I was always waiting for something “big” to happen. I too played the lottery and waited and hoped. Maybe one day I would buy a property and develop it to then sell for a huge profit. To my relief and probably yours, I found out there is a better way. We had a great session about using a specific framework to find a pathway to your goals. We started out by working out what our end goal is, that is what we would like to achieve, and in what timeframe. Then by following the proven framework, we can reverse engineer and put the steps in place to understand what is required to get there. Lesson 2 – Time and Task Prioritisation How is your time management? You need to work out what your A, B, C, and D class activities are. In short, class activities are generally events that happen maybe only a couple of times each year but can generate the greatest amount of income. An example may be attending an event like Wealth Retreat. B class activities are next, and while not as important as A class activities will still generate a good amount of income and so on to C class and then D class activities. D class activities are the least of the income-producing tasks, like fixing a printer or minor admin tasks. This was a great exercise to understand where you are your most dollar productive. Lesson 3 – A Wealth Thermostat Your mind is like a cup, once it is full of water, it overflows, and you are unable to put any more water into the cup. To take on more water, you need to increase your cup size. So, to increase your financial thermostat, and therefore your wealth, you need to increase your mind's capacity. If you liken the water to opportunity and your mind to the cup, once your mind reaches capacity, you may miss opportunities that come your way. Lesson 4 – To become financially independent you need to treat your property investments like a business Over the last few years, it became obvious to me that those investors who treated their property investments like a business were the ones who managed to develop financial independence from their properties. And those that didn’t seemed to be working for their properties rather than the other way around. A small group of Australian investors treats their properties as a business. They are the CEO of their business and realize that it’s not how much money you make that matters, but how hard that money works for you and how much you keep that matters. They have a plan including a property plan, a finance plan, a tax plan, and an asset protection plan and are surrounded by a good team of specialists. Lesson 5 – Alone you are vulnerable; connected we are strong Many investors think they must do it all themselves or learn it all themselves. Partly because they think they know better than others or maybe it’s because they are not hanging around the right people – supportive, encouraging people. And these get harder to find, the more successful you are. But 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. Lesson 6 – Your peer group is contagious ●        Will your current peer group empower you to reach your deepest dreams goals and your life’s purpose? ●        Will they hold you accountable to a high enough standard or will they let you slip back into your old comfort zone? ●        Will they feed your ideas and give you input to help you overcome challenges you face along the way? ●        Will they support you when you're having a tough moment? ●        Do they inspire you to keep performing at your highest and best capabilities? If not, what are you doing about changing that? It's ultimately up to you to find and create the peer group that will help you live the life you want to live. Lesson 7 – 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 themselves. But isolation only makes things worse. You need to accurately assess the situation, learn your lessons, and move forward. This is why your peer group and mastermind team are so essential. We are moving into a new financial era - a time of amazing opportunities and some real risks. To succeed in this environment we need the support, insights, and perspective of a trusted group of advisers and peers. Lesson 8 – Your Mastermind Team One of the exciting parts of Wealth Retreat this year was 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. 9. Real Wealth Is What You Give The most successful participants from Wealth Retreat all have moved to a place where money isn't what motivates them. Money is a sufficiency need. Once you have enough of it, it ceases to be important. Links and Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports = www.PodcastBonus.com.au Join us at Wealth Retreat 2024. http://www.wealthretreat.com.au/ Some of our favourite quotes from the show: “Most people’s financial thermostat has been set by the things they learn, the things they heard, the things they experienced as a child.” – Michael Yardney “I think that’s one of the traits of successful people, that they’re actually not jealous of successful people.” – Michael Yardney “Once money’s sufficient, then you have to move on to other things.” - 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
Now here’s a question for you - what sort of returns can you expect from your property investments over the next decade? In today’s episode, independent financial advisor Stuart Wemyss provides an insightful exploration into what you can expect in the coming years. Unpacking the Next Decade of Property Investment Returns With a deep dive into data-driven analysis, historical trends, and potential opportunities and risks, my conversation with Stuart offers a wealth of knowledge for those navigating the property investment and rental market landscapes. We explore the recent period of low rental growth, the contributing factors, and possible solutions to balance the needs of owner-occupiers and investors. ●        Potential returns for property investors over the next decade, focusing on data-driven analysis, historical trends, and potential opportunities and risks. ●        The average 9.7% rolling decade return for Melbourne and Sydney, which demonstrates the significance of long-term returns over short-term predictions. ●        The recent period of low rental growth and the contributing factors, such as low interest rates and dominance of owner-occupiers in the market. ●        The need for a balance between owner-occupiers and investors to solve the current rental crisis. ●        How to attract more private landlords to provide affordable accommodation and help those who are struggling to enter the mortgage market. ●        Recent market changes and their impact on rental and capital growth. ●        The potential role of the government in resolving the rental crisis. ●        The concept of mean reversion and its potential impact on future returns. ●        The importance of being prepared for uncertainties and potential headwinds in the property market. Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart Wemyss’ blog mentioned in this show Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports – www.PodcastBonus.com.au Some of our favourite quotes from the show: “But we were talking about the concept that there aren't enough private landlords, and in Australia the system is such that about a third of Australians rent, and not necessarily because they're poor, often just because of the stage of their life.” – Michael Yardney “There's going to be headwinds this year. Interest rates are going to probably remain a bit higher a bit longer than some expected, inflation is going to take a little bit longer to get under control if the government has its way.” – Michael Yardney “Rather than keep us alive, our worries are more like spinning on a wheel in a ditch.” – 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    
Maybe you’re too biased to become a successful property investor? What do I mean by that? Well…did you know that we can sometimes be our own worst enemy as property investors? It’s not because of the decisions we make, the opportunities we consider, or the investments we miss out on, but rather, it’s due to the way we think. By the last count, I’ve read that there are 188 types of these fallible mental shortcuts in existence, and they constantly impede our ability to make the best decisions about our careers, our relationships, and for building wealth over time. So, whether you are a beginner or an experienced investor, whether you’re in business or an entrepreneur you’ll enjoy my chat today with Mark Creedon, founder of Mastermind Business Accelerator as we discuss why seemingly rational people act irrationally when it comes to money. Cognitive Biases You Need to Know Without always knowing it, property investors are pre-programmed with a range of biases which may cause them to interpret information incorrectly and thus undertake sub-optimal investment decisions. You see, most of us think we’re rational people but we’re not. There is no shortage of cognitive biases out there that can trip up our brains. However, because cognitive biases are based on generalizations and assumptions, they can’t always be correct. And if you don’t check your reasoning, they can lead to judgments and decisions that negatively impact your business. 1. Confirmation bias People tend to search for information that confirms their view of the world and ignore what doesn’t fit.  In an uncertain world, we love to be right because it helps us make sense of things. One way to counter confirmation bias is to read things you’re going to disagree with. In other words, read all you can from reputable sources, whether it’s confirming your original view or not. 2. Anchoring bias We have a tendency to use anchors or reference points to make decisions and evaluations, and sometimes these lead us astray. This is because the initial price you set for a house or car or more abstractly, for a deal of any kind, tends to have ramifications right through the process of coming to an agreement. Whether we like it or not, our minds keep referring back to that initial number. It’s important for you to evaluate any property deal based on its own fundamentals and all the information you have available from your research and due diligence at the time. 3. Awareness bias How are your investments performing – are you happy with the results you’re getting? It’s been shown the poorest performers in all areas of life are the least aware of their own incompetence, a phenomenon known as the Dunning-Kruger effect. If you’re the smartest person on your team you’re in trouble. It’s best to work with a team of mentors and professional advisors. 4. Positivity bias In the face of lack of capital growth, prolonged vacancies, or inflated expenses, some investors continue to believe that their investment will turn the corner “one day.” The problem with this is that when all signs point to a dud investment, it likely is one – but positivity bias can stand in the way of an investor taking action to rectify the situation. One of the best things an investor can do is admit what they don’t know and get a good team of professionals around them. 5. Negativity bias Just as some investors can be overly positive this is the tendency to put more emphasis on negative experiences rather than positive ones. Our ancestors evolved a brain that routinely tricked them into making three mistakes: overestimating threats, underestimating opportunities, and underestimating resources. This helped keep them alive. It’s a great way to pass on genes, but a lousy way to promote quality of life or grow your wealth through property. Fact is: there will always be property pessimists around, but you can minimize your risks and maximize your upside if you educate yourself and become financially fluent, follow a proven strategy, and get a good team around you. 6. Status quo bias This describes our tendency to stick with what we know, whether or not it’s the best course of action. Psychologists call this “loss aversion” and it explains why so many Australians are willing to stick their money in a plain old bank account earning minimal interest, rather than taking the “perceived risk” of property investment. Successful investors, businesspeople, and entrepreneurs have mentors, coaches, and mastermind groups to help them see their blind spots and to encourage them to keep moving forward. 7. Survivorship Bias The misconception here is that you should focus on the successful if you wish to become successful, while the truth is that when failure becomes invisible, the difference between failure and success may also become invisible. The trick when looking for advice is to not only learn what to do but also look for what not to do. 8. Bandwagon bias This is the psychological phenomenon whereby people do something primarily because other people are doing it. The bandwagon effect has wide implications but is commonly seen during strong property markets where the media stirs up a frenzy and it’s one of the factors that lead to asset bubbles. But when it comes to financial matters we know “the herd” is usually wrong – most property investors never build a substantial portfolio. It pays to remember that just because everyone else is doing it, that doesn’t mean you should follow the crowds. 9. Restraint bias Following on from bandwagon bias, restraint bias is the tendency for people to overestimate their ability to control impulsive behavior. Psychologists say the very people who think they are most restrained are also most likely to be impulsive. 10. Bias bias Failing to recognize your cognitive biases is a bias in itself. Arguably this is the most damaging bias because having blind spots means you’re less likely to recognize any of these psychological influences in yourself. Simply becoming aware of these biases means half your battle against your own worst enemy – yourself – is won. The bottom line: We all want to think we are rational and biases are things that afflict other people. However our brains are designed with blind spots and one of their clever tricks is to confer on us the comforting delusion that we, personally, do not have any biases. This is why so many of us are not only bad with money but make the same mistakes over and over again. Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join Metropole’s Mastermind Business Accelerator 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 Get a bundle of eBooks and reports – www.PodcastBonus.com.au Some of our favourite quotes from the show: “It’s actually not as much the investment, it’s about the person.” – Michael Yardney “In fact, it’s been shown the poorest performers in all areas of life are the least aware of their own incompetence.” – Michael Yardney “There will always be pessimists around, but I don’t really know any rich pessimists.” - 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
Homeownership is looking further out of reach for anyone without family wealth, as over the last few years property prices kept growing and wages fail to keep up. Over the last decade or so property prices keep growing and wages failed to keep up and over the last few years affordability seems to have decreased as interest rates keep increasing. Is it really harder to get into the property market today than it was a number of decades ago? That’s what I discuss today with independent financial adviser Stuart Wemyss. And even if you already own a home, I’m sure our discussion will be valuable because it will help you understand what we believe is ahead for our housing market. Is homeownership harder today? Many people are suggesting it's much harder to buy a property today than it was years ago. They’re telling us that Baby Boomers don't really understand how hard it is. My guest today, independent financial advisor Stuart Wemyss, believes it's actually easier to buy a property today than it was many decades ago. Now I know some people listening to this one disagree so I'm looking forward to hearing his views. Millennials are telling us that buying a house today is far harder than when their parent got into the market because the rate by which property prices have soared is well beyond that of wage growth. At first glance these arguments make sense, but there’s more to it than that. I would like to suggest that in many respects, buying a property today is easier than it was many decades ago. 1.       Abundant access to information, knowledge, strategies, advice, and so forth How do you get ahead financially? One solution is to get the best advice so that you make the most of your financial opportunities. Often people learn by trial and error, but that can be expensive and waste valuable time. You can fast-track your financial success by learning the best way to use your money. ●        There is an absolute abundance of information that is available on the internet. ●        Most of it is accessible instantaneously at no cost. ●        Blogs, forums, podcasts, books, websites, software, and so on. It cannot be underestimated how valuable that is. 25 years ago, no such information was available. There were a few books about property investing, but not many. The only way to learn about borrowing strategies was by meeting bank staff, but they weren’t particularly knowledgeable or helpful. Therefore, unless you knew a successful property investor, it was hard to access knowledge. As the saying goes, “knowledge is power”. 2.       Much higher borrowing capacity Thirty to forty years ago, borrowing 3 times your gross income was seen as very high risk. Today, the banking regulator (APRA) classifies a high-risk borrower as anyone that borrows more than 6 times their gross income. Therefore, by this measure, borrowing capacity has increased by 2 to 3 times over the past few decades. In addition, 30 years ago, it was not possible to borrow more than 80% of a property’s value. Today, owner-occupiers can borrow up to 95%. 3.       Higher earning capacity and more employment opportunities The internet has made it very easy to connect with people around the world. This means people can explore a lot more job opportunities. In fact, given the increased acceptance of working from home, it is not even necessary for you to live in the same country as your employer. Whilst these advancements might make the job markets more competitive, for some occupations it opens (literally) a whole world of opportunities. Therefore, first-time property buyers can proactively explore many opportunities to increase their income, thereby increasing their borrowing capacity and purchasing power. In addition, incomes have increased in real terms over the past few decades, especially for many professional white-collar occupations. There are some young people earning 2 to 3 times more than what was possible in their occupation decades ago. I discuss this further below. 4.       Family guarantees & the bank of mum and dad The biggest impediment that delays first-home buyers getting into the market is saving enough for a deposit. First homeowners need a minimum deposit of at least 12% of a property’s purchase price (a 5% deposit plus 7% for costs including stamp duty and legal fees). That can take a long time to save. The most effective way to alleviate a lack of deposit is to get help from family. This might come in the form of providing a family guarantee. Alternatively, parents might prefer to provide their child with a gift or a loan. Most baby boomers have benefited greatly from higher property prices over the past few decades and are in a good position to help their children. 5.       Cash flow budgeting/management tools It is critical that young people establish good cash flow management practices as soon as they enter the workforce, as these habits tend to stick with you over your lifetime. Establishing a strong savings pattern will serve two purposes. ●        Firstly, it will help a prospective home buyer save a larger deposit, sooner. ●        Secondly, it will demonstrate (to themselves and a bank) that they have the necessary surplus cash flow to service a loan. There is a huge array of tools available to people today to help them improve their cash flow management.  6.       Ability to invest outside of your domicile location. The internet has made buying a property outside your domicile location a lot easier. For example, if you live in a regional town, it probably makes financial sense to invest somewhere else. A lot more equity in dollar terms It is relatively easy to accumulate over $1 million in equity in a property if you (1) buy well and (2) hold it for a couple of decades. Of course, this is a function of borrowing more i.e., property costs a lot more today than it did decades ago. But if you can afford a higher loan and you hold a property for the long term, the wealth effect can be substantial. One downside to this is that borrowing more means that you either must generate substantial income to be able to repay the loan or downsize the property at some stage to reduce/repay debt. Do all these positives offset higher prices? The average median house price in Melbourne and Sydney in 1980 was almost $53,000. Adjusting for inflation, this equates to $268,000 in today’s dollars. The average median house price in Melbourne and Sydney has increased to $1.2 million (Sept 2022). Therefore, house prices have increased 4.5 times in real terms since 1980. Income plus higher borrowing capacity Borrowing capacity has more than doubled since 1980 and professional salaries have risen by more than 30%. This means buying power has increased by a factor of 3 to 3.5 times over the past four decades. It can be more difficult today It can be more challenging to be a first-time buyer today. But a lot of the advancements over the past few decades have gone a long way toward mitigating the impact of higher prices (or, more correctly, driving prices higher). Most importantly, it is easier to make the right decision today. Mistakes can be very costly. If I knew what I know today before I purchased my first home 25 years ago, the financial outcomes would have been a lot different. This knowledge allows younger people to make a lot of money from property if they have the motivation and desire to do so and they are prepared to work hard and sacrifice. Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game & Investopoly Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Some of our favourite quotes from the show: “I think one of the other factors that have changed over time is there are more people to get advice from, which is good in some ways, but it’s also hard to work out who you should take advice from.” –Michael Yardney “There are a number of state government and federal government initiatives that are helping first home buyers get into the market.” – Michael Yardney “A lot of people are rentvesting now. They realize that they can’t afford to buy where they want to live, so they rent where they want to live and buy in another state.” – 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    
Many people are continually in pursuit of financial freedom. Yet, only a few seem to understand the true path to this seemingly elusive destination. It's not just about earning more or saving more; it's about cultivating the right mindset. I'm going to start today's show with a bold claim. I'm going to suggest that this is probably going to be one of the most important podcast episodes you're going to listen to in the next 12 months. Today you're going to hear Jarrad Mahon, director of Investors Edge real estate in Perth, interview me for his Perth Property Insider podcast. This happened a few months ago after Wealth Retreat last year. We're at the beginning of a new year which will be full of challenges but also full of opportunities, and it's very likely that you made some resolutions, or at least some thoughts about your plans for the upcoming year. Now I'm going to share with you a sneak peek behind the curtains of what a small group of already very successful property investors, businesspeople, and entrepreneurs learned at Wealth Retreat. We're going to talk about why a small group of investors outperform and what you may have to do differently this year because, as I also say at Wealth Retreat, the best is yet to come. Links and Resources: Metropole’s Strategic Property Plan – to help both beginning and experienced investors Get a bundle of free reports and eBooks – www.PodcastBonus.com.au Jarrod Mahan – Investors Edge Perth Join us at Wealth Retreat 2024 – find out more here and express your interest. Shownotes plus more here: The Game Changer: The Crucial Shifts for Prosperity in this New Year – with Jarrad Mahon
In today’s show, I want to discuss with you the five levels of investing, a framework that I have created to help you understand where you are on your journey and to help you make sure you reach the top level as a successful investor. Then I’m going to share some interesting information with you about the tsunami of wealth Baby Boomers are expected to leave their children. Do you understand the Five Levels of Investing? If you want to become a successful property investor, you really need to understand the five levels of investing. I’ve created a model to explain the progression most investors take in their path to developing financial freedom. Level 0 – The Spender Level 0 are really not investors – they tend to be spenders and borrowers and as a result, end up with a high level of debt. A large part of our adult population falls into this category and they will never become wealthy unless they do something radically different. Level 1 – The Saver Most people who are not spenders will generally be what I call savers. Their main investment is their home, which they aim to pay off over time. Sometimes they save a little, squirreling away a few dollars of what’s left over after paying tax but in general, they save to consume, not to invest. They will get the most leverage by investing in themselves and getting a quality financial education and beginning to build a network of peers whom they can make the journey with. Level 2 – The Passive Investor Level 2 investors have become aware of the need to invest. They realize their superannuation won’t get them through retirement, so they learn about investment and accumulate assets. While they are generally intelligent people, they are still what I would call financially illiterate – they don’t really understand the rules of money. They must unlearn the flawed, incorrect, and misguided lessons they have learned about money and wealth from unqualified teachers. Level 3 –The Active Investor Level 3 investors realize that they must take responsibility for their financial future and become actively involved in their investment decisions. They become financially literate by building a knowledge base of investment strategies and techniques. Level 3 investors usually leverage the time and expertise of a network of industry professionals as they realize that they can’t do it all themselves. They also upgrade their network of advisors and peers, often joining a Mastermind group of like-minded people. Level 4 – The Professional Investor A very small group of investors move to the top rung of the ladder and become a Level 4 “professional” investor who has built and now manages a true investment business. A Level 4 investors’ property investment business has a substantial asset base that generates sufficient recurring passive income to pay for their lifestyle costs. They keep growing their investment portfolio whether or not they work in a real job. These professional investors don’t hand control of their investments over to others; they retain control whilst employing a proficient team: accountants, finance brokers, property managers, solicitors, and property strategists who have great systems that achieve repeated and consistent results, which are reliable and predictable. This gives Level 4 investors the freedom to choose whether they get up in the morning and go to work or not. Asset Growth first, then income stage It’s important to understand that the first stage in becoming financially free is to educate yourself; the next stage is that of asset accumulation – your job as a Level 3 investor is to build a sufficiently large asset base to fuel your “cash machine”. Then, only when you have grown a substantial asset base, do you transition into the cash flow (income) stage of your life as a level 4 investor. What is your Level of Wealth? Now it’s time for some home truths. How far up the Wealth Pyramid are you? Where do you currently sit in this hierarchy of investors? Everyone starts at the bottom – at Level 0 – but not everyone makes it to Level 4. In fact, few do. But you can once you understand why the rich keep getting richer. What I want you to understand is that the “active” income you make (the pay packet you work for every day) has nothing to do with what level of investor you are and in fact is one of the worst predictors of wealth. One great thing about freedom is the freedom to choose to live the life you want to live. 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 Get a heap of eBooks and reports here: -  www.PodcastBonus.com.au Some of our favorite quotes from the show: “Savers tend to be afraid of financial matters. They’re generally unwilling to take risks.” – Michael Yardney “You’ve got to go through the various stages to become financially independent.” – Michael Yardney “Continue to work more on yourself than you do on your job so you become more valuable to your employer, which will help you earn more and also help you as an investor.” – 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
In today’s show, I want to discuss with you the five levels of investing, a framework that I have created to help you understand where you are on your journey and to help you make sure you reach the top level as a successful investor. Then I’m going to share some interesting information with you about the tsunami of wealth Baby Boomers are expected to leave their children. Do you understand the Five Levels of Investing? If you want to become a successful property investor, you really need to understand the five levels of investing. I’ve created a model to explain the progression most investors take in their path to developing financial freedom. Level 0 – The Spender Level 0 are really not investors – they tend to be spenders and borrowers and as a result, end up with a high level of debt. A large part of our adult population falls into this category and they will never become wealthy unless they do something radically different. Level 1 – The Saver Most people who are not spenders will generally be what I call savers. Their main investment is their home, which they aim to pay off over time. Sometimes they save a little, squirreling away a few dollars of what’s left over after paying tax but in general, they save to consume, not to invest. They will get the most leverage by investing in themselves and getting a quality financial education and beginning to build a network of peers whom they can make the journey with. Level 2 – The Passive Investor Level 2 investors have become aware of the need to invest. They realize their superannuation won’t get them through retirement, so they learn about investment and accumulate assets. While they are generally intelligent people, they are still what I would call financially illiterate – they don’t really understand the rules of money. They must unlearn the flawed, incorrect, and misguided lessons they have learned about money and wealth from unqualified teachers. Level 3 –The Active Investor Level 3 investors realize that they must take responsibility for their financial future and become actively involved in their investment decisions. They become financially literate by building a knowledge base of investment strategies and techniques. Level 3 investors usually leverage the time and expertise of a network of industry professionals as they realize that they can’t do it all themselves. They also upgrade their network of advisors and peers, often joining a Mastermind group of like-minded people. Level 4 – The Professional Investor A very small group of investors move to the top rung of the ladder and become a Level 4 “professional” investor who has built and now manages a true investment business. A Level 4 investors’ property investment business has a substantial asset base that generates sufficient recurring passive income to pay for their lifestyle costs. They keep growing their investment portfolio whether or not they work in a real job. These professional investors don’t hand control of their investments over to others; they retain control whilst employing a proficient team: accountants, finance brokers, property managers, solicitors, and property strategists who have great systems that achieve repeated and consistent results, which are reliable and predictable. This gives Level 4 investors the freedom to choose whether they get up in the morning and go to work or not. Asset Growth first, then income stage It’s important to understand that the first stage in becoming financially free is to educate yourself; the next stage is that of asset accumulation – your job as a Level 3 investor is to build a sufficiently large asset base to fuel your “cash machine”. Then, only when you have grown a substantial asset base, do you transition into the cash flow (income) stage of your life as a level 4 investor. What is your Level of Wealth? Now it’s time for some home truths. How far up the Wealth Pyramid are you? Where do you currently sit in this hierarchy of investors? Everyone starts at the bottom – at Level 0 – but not everyone makes it to Level 4. In fact, few do. But you can once you understand why the rich keep getting richer. What I want you to understand is that the “active” income you make (the pay packet you work for every day) has nothing to do with what level of investor you are and in fact is one of the worst predictors of wealth. One great thing about freedom is the freedom to choose to live the life you want to live. 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 Get a heap of eBooks and reports here: -  www.PodcastBonus.com.au Some of our favorite quotes from the show: “Savers tend to be afraid of financial matters. They’re generally unwilling to take risks.” – Michael Yardney “You’ve got to go through the various stages to become financially independent.” – Michael Yardney “Continue to work more on yourself than you do on your job so you become more valuable to your employer, which will help you earn more and also help you as an investor.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how
Are you hoping to be a better investor, businessperson, or entrepreneur? Well, today’s show is for you because we discussed the concept of behavioural finance, which is the study of the effects of psychology on investors and financial markets. But don’t worry, it’s not woo-woo stuff, and it’s not technical. Instead, I share several quotes from my favourite author, Morgan Housel, and Mark Creedon and I will try and explain why investors often appear to lack self-control, act against their own best interest, and make decisions based on personal biases instead of facts. Whether you’re a beginning investor or well down the track in your investment journey, I’m sure today’s show will give you some insights, as you’re probably twice as biased as you think, and if you don’t think this applies to you, you’re probably four times as biased as you think. Want to become better with your finances? Well, you could do a lot worse than learning from my favourite author, Morgan Housel, author of the Psychology of Money. His book The Psychology of Money shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics. And today, I’d like to discuss several of Morgan Housel’s quotes with Mark Creedon, founder and CEO of Metropole’s Business Accelerator Mastermind. Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. ●        Doing well with money has little to do with how smart you are and a lot to do with how you behave.  ●        Money―investing, personal finance, and business decisions―is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world, people don’t make financial decisions on a spreadsheet. ●        Emotions can override any level of intelligence. Morgan Housel Quotes “Be careful when reading about how stupid investors can be and not realize you're reading about yourself.” “The problem with economic forecasting is that the things you can predict tend to not matter, and the things you can't predict make all the difference in the world.” “Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.” “Getting rich and staying rich are different things that require different skills.” “Most financial mistakes come when you try to force things to happen faster than is required. Compounding doesn’t like when you try to use a cheat code.” “Imagine how much stuff you'd have to make up if you were forced to talk 24/7. Remember this when watching financial news on TV.” ●        Investors were probably better informed 20 years ago when there was 90% less financial news. ●        Predictions, opinions, and forecasts should be discounted by the number of times the person making them is on TV each week. ●        The more you want something to be true, the more likely you are to believe a story that overestimates the odds of it being true. “The market is rational, but investors play different games, and those games look irrational to people playing a different game.” ●        A lot of financial debates are just people with different time horizons talking over each other. ●        Beware of taking financial cues from people playing a different game than you are. ●        Everyone is making a bet on an unknown future. It’s only called speculation when you disagree with someone else’s bet. “When things are going extremely well, realize it’s not as good as you think. You are not invincible, and if you acknowledge that luck brought you success, then you have to believe in luck’s cousin, risk, which can turn your story around just as quickly.” “Controlling your time is the highest dividend money pays.” “No one is impressed with your possessions as much as you are.” ●        Don't attempt to keep up with the Joneses without realizing the Joneses aren't any happier than you are. “Read last year's market predictions, and you'll never again take this year's predictions seriously.” ●        A big takeaway from economic history is that the past wasn’t as good as you remember, the present isn’t as bad as you think, and the future will be better than you anticipate. “You're twice as biased as you think you are (four times if you disagree with that statement).” “Tell people what they want to hear, and you can be wrong indefinitely without penalty.” “You're twice as biased as you think you are (four times if you disagree with that statement).” “Risk management is less about how you respond to risk and more about recognizing how many things can go wrong before they actually do.” “If you have an idea but think “someone has already done that,” just remember there are 1,010 published biographies of Winston Churchill.” ●        Just because someone else has done it before, that’s not a reason not to do it. If anything, it means that you can do it too. More people wake up every morning wanting to solve problems than wake up looking to cause harm. But people who cause harm get the most attention. So slow progress amid a drumbeat of bad news is the normal state of affairs. Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join Metropole’s Mastermind Business Accelerator 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 2023 on the Gold Coast in 2023– express your interest here Get a bundle of eBooks and reports – www.PodcastBonus.com.au   “We all think we know how the world works because we’ve only experienced a tiny sliver of it, so, therefore, we put our thoughts, our emphasis, our bias on this.” – Michael Yardney “Past success can’t be relied on. You can’t repeat that indefinitely.” – Michael Yardney “Don’t judge your chapter one or two by my chapter 30 or 40.” – 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 the Australian property market continues to defy expectations, financial analyst Pete Wargent joins me to unravel the complexities of its current landscape. Being the first Big Picture Podcast for the new year, I want to look at the clues in the news for what’s ahead for our economy and our housing markets in 2024. Insights into Australia's 2024 Property Sector and Economic Trajectory In this episode, Pete Wargent and I discuss: ●        How forecasts of housing market declines in early 2023 proved wrong and investors were wise to ignore them  ●        Supply and demand will continue to drive property markets in 2024 with shortages persisting ●        Interest rate hikes had a limited impact on property markets in 2023 and rates are now expected to peak and start falling  ●        Inflation is cooling in Australia and overseas which is positive for interest rates medium-term ●        The economy is slowing which reduces the chance of more rate hikes while also lowering the risks of cuts happening too fast ●        Population growth has surged to the highest levels since the 1950s, fueling massive demand for housing ●        The construction industry is in crisis and unable to deliver anywhere near the dwellings required ●        Foreign investment has fallen but build-to-rent may attract some overseas capital ●        Consumer confidence should rebound in 2024 as economic stability returns post-rate hikes  ●        Clarity that interest rates have peaked will be a positive psychological shift for buyers and investors Links and Resources: Metropole’s Strategic Property Plan – to help both beginning and experienced investors Get a bundle of free reports and eBooks – www.PodcastBonus.com.au Join as at Wealth Retreat 2024 – www.WealthRetreat.com.au Pete Wargent’s blog Some of our favorite quotes from the show: “There's an under-supply of properties and various estimates that already we're starting with 100,000 - 120,000 under-supply of dwellings and we're just not keeping up. So our markets are going to be under-supplied for years to come. – Michael Yardney “But the big thing that changed towards the end of 2023 is that the Federal Reserve finally has just pivoted and it was pretty clear cut. They're basically done with hiking interest rates.” – Michael Yardney “If you cared at all, you're going to get some results. If you care enough, you're going to get incredible results.” – 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  
Location, Location, Location! In today’s podcast, we’re going to dive deep into the world of property investment and explore the importance of location in achieving long-term success. And more importantly, what makes an investment-grade location. Joining me today is Brett Warren, National Director of Metropole Property Strategists, to share his expertise and insights into what makes a great location for investment. Whether you're a seasoned property investor or just starting out, today’s podcast will provide you with valuable insights and practical tips to help you make informed decisions and achieve your investment goals in our changing property markets which are very fragmented. What to look for in an investment-grade location Location, location, location! I’m sure you’ve heard about the importance of location. In fact, you've probably heard me say that the location of your property will do around 80% of the heavy lifting of its capital growth. But what makes a great location for investment? That’s the topic I’d like to discuss today with Brett Warren National Director of Metropole Property Strategists. Factors that make an investment-grade location There are many factors to take into account when looking for your next investment property, but if you do your research to find an investment-grade location, you’ll be well on the way to making a good investment decision. Demographics The first factor to consider when choosing an investment-grade location is the demographics. At Metropole, we look for areas where resident incomes are growing faster than the state average. Supply and demand While a lot of people suggest population growth is a key driver of demand for property, it is important to look at the supply side of the equation. We like to invest in areas with a limited new supply of land or dwellings. That’s why we like to invest in the inner and middle-ring suburbs of capital cities.  Employment opportunities Employment opportunities are also a significant representative of a suburb’s investment value. If an area has a diverse range of employment opportunities nearby, it is more likely to attract and retain a population of working professionals and families, and this will maintain property values. Infrastructure and amenities The availability of infrastructure and amenities is another important factor contributing to what makes a location “investment-grade.”  Infrastructure refers to the basic services and facilities that support the local community, such as roads, public transport, and hospitals. Amenities, on the other hand, refer to the recreational and cultural facilities that enhance the quality of life in the area, such as parks, restaurants, and entertainment venues.  Walkability Investment-grade locations with easy access to shops and lifestyle precincts with high walkability will remain in high demand moving forward and have already seen more than 36% growth over the past 5 years.   Beauty, amenities, services, and walkability are all key factors that help set a high-value investment-grade suburb apart from the rest. Gentrification Gentrification is a process where a neighbourhood or an area is improved and redeveloped, leading to an increase in property values and slow displacement of older long-term residents due to rising housing costs. This process often starts with the influx of middle or upper-class residents, new businesses, and amenities, which attract further investment and development.  Gentrification is a positive factor for property investment because it brings economic benefits and improvements to an area which in turn creates more demand and therefore attracts higher prices for local properties. Attractive neighbourhoods character Another factor to consider for an investment-grade location is those neighbourhoods that have undergone gentrification and now have an attractive neighbourhoods character. This adds value to the neighbourhood and results in higher local property values because people are willing to pay a premium to live in attractive areas. Low crime rate Areas with a low crime rate are far more desirable to live in than those with a higher crime rate - people are willing to pay more to live in a safe suburb where you can live without fear of crime on your doorstep and this higher demand helps to support property prices. What are the different types of locations? Not all real estate locations are equal and just like there are different precincts on the Monopoly board, there are basically 4 types of locations where you could buy properties in the real world, and some are much more worthwhile than others. Discretionary locations These are the most expensive locations in our capital cities – the “established money” locations where most of the residents have lived for a long time and where many residents have paid off their home loans years ago. Aspirational locations These are the upper-middle-class areas and gentrifying locations of our big cities which would also be considered A-grade suburbs. Affordable locations This is where most homeowners and many investors look because that’s where they can afford to buy. However, sometimes investors buy in these suburbs because they are “advised” to buy at the cheaper end of the market. As an investor I would steer clear of these affordable locations – most of these will never gentrify in your lifetime and they will underperform with regard to rental growth and capital growth. Last choice locations In every city, there are suburbs where people live because they really have no choice. No one wakes up in the morning wanting to live in these suburbs, but social circumstances force them to. Of course, investors should steer clear of these locations. A final note… Remember that the location isn’t the only thing to consider. Owning the right property in that location is just as important. So be careful … don’t get stuck with an underperforming property in the wrong segment of the housing market, because if history repeats itself, and it most likely will, you could end up with a dud property that you will regret owning and have difficulty selling if you need to. Links and Resources Michael Yardney Brett Warren – National Director Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports = www.PodcastBonus.com.au Some of our favourite quotes from the show: “Your future income’s going to be dependent on your tenant’s ability to pay rent, and higher rents over time.” Michael Yardney “There are jobs and there are jobs. And again, it’s not a judge of people, but Australia is becoming a knowledge-based society. People in the higher skill levels get paid a lot more.” – Michael Yardney “I’d rather own a family-friendly apartment, or a townhouse, in a good location than a house and land in a poorer location.”  – 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  
Our property markets are changing, and we’ve now moved into the adjustment phase of the cycle where there will be less capital growth and where, in many locations, property values are falling. So, what should a property investor do? Well, in today's show with Brett Warren, national director of Metropole Property Strategists, we talk about whether property investing is an art or a science, which you'll need to understand if you want to be successful in these more challenging times. And I share some major structural shifts that created property booms in the past and what I believe the next one is going to be. Links and Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of eBooks and reports = www.PodcastBonus.com.au Shownotes plus more here: Is property investing an art or science? With Brett Warren, Summer Series
It's the time of the year when many of us are looking back at 2023 to see what's ahead for our housing markets in 2024. I was recently interviewed by Aaron Christie-David of Atelier Wealth for his Australian Property Investment Podcast. We had such a great discussion I asked Aaron if I could replay this episode for you, followers of the Michael Yardney podcast. In this replay, you’ll hear my analysis of the Australian property market's performance in 2023 as well as educated predictions for 2024. Our discussion spans a variety of topics including the resilience of the market amidst rising interest rates, the increasing trend towards higher-density living, and the impact of government policy on homeownership. We also examine the urban infrastructure challenges posed by rapid population growth and consider innovative solutions to accommodate the demand for housing. Whether you’re a new or seasoned investor, listening to this episode will help you gain valuable insights and strategies for property investment, underlining the importance of a proactive approach and the right mindset for success in the ever-evolving landscape of real estate investment. Market Mastery: Unpacking Australia's Real Estate Trends In our conversation today, we explore the complexities of the Australian property market, discussing trends from the previous year and making predictions for the future. Our discussion spans a variety of topics, including the resilience of the market amid economic changes, the role of government policy, demographic shifts, and the challenges of urban infrastructure. ●        How 2023 went for Metropole ●        The dynamic Australian property market of 2023 and its resilience despite interest rate hikes ●        The government's influence on homeownership trends and the shift toward high-density living ●        The property market's surprising buoyancy and the role of cash-rich buyers in driving demand ●        Market indicators such as consumer confidence, auction clearance rates, and active bidders ●        Housing affordability and the localized rise in property values ●        Urban infrastructure challenges due to population growth and innovative housing solutions ●        Insights from an interview with Leilani Burra on demographic trends and the need for new homes ●        The importance of mindset and strategies for long-term success in property investment ●        Avoiding common pitfalls and the value of mentorship and professional guidance Whether you're a seasoned investor or just starting out, the insights and discussions in this podcast will equip you with the knowledge and foresight needed to navigate the property landscape with confidence. It's a treasure trove of information that underscores the multifaceted nature of real estate investment and the various factors that contribute to success in this field. 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 Aaron Christie-David -   Atelier Wealth Listen to the original Podcast here – The Australian Property Investment Podcast Get a bundle of eBooks and reports – www.PodcastBonus.com.au Some of our favorite quotes from the show: “One of the big, big changes at the beginning of this year is I stepped back from being CEO. I founded the company Metropole Properties in 1979, but we've been working with clients for almost 25 years now and I decided to step back and enjoy those things we're talking about.” – Michael Yardney “I'd rather bring people up through education, through better jobs, through more skills, through good incentives from the government to allow them to buy their homes as well.” – Michael Yardney “Usually, I've found that people who have had luck actually need to have the hubris, the ego, kicked out of them by the world doing 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  
We all belong to one - a demographic tribe, that is. In fact, Australia is one big country of many tribes. If you don't belong to the one, you don't survive. Some are easy to find: it might be your footy team or where you work, the way you vote, or the way you dress. But there’s another set of tribes that are of interest to property investors and businesspeople - the tribes and labels that demographers divide us into. Now I’m sure you’ve heard of Baby Boomers and Millennials, but have you heard of FIFOs or VESPAs, or the YOLO tribe?  And do you know what they mean and how understanding the demographic tribes can help you target your investments or business decisions? That's what I'm going to discuss in today’s show with leading demographer Simon Kuestenmacher. 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 Simon Kuestenmacher - Director of The Demographics Group Join us at Wealth Retreat 2024 – click here to find out more Shownotes plus more here: Do you understand the Demographic Tribes and how they influence our property markets With Simon Kuestenmacher, Summer Series
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Comments (5)

Nicholas Agetzis

I really enjoy learning from this podcast. I'm beginning to feel much more confident in making financial decisions to invest in my families future. Thanks Michael

Apr 18th
Reply

Aurorita Pacheco

THIS is very good information.

Nov 29th
Reply

andrew coonan

great podcast on property investing, delivered in easily digestible episodes

Jun 23rd
Reply

TooTs

Loved this one! Exactly the information I needed. Thank you!

Mar 21st
Reply

Pen Virak

awesome!

Jul 9th
Reply
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