Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

Did you make New Year's resolutions for 2021? What were they? Were you planning to get more money? Become healthier?

How many have you broken already?

My resolution of eating more healthily didn't last long. But I know that a lot of people are planning to make 2021 a great year considering the challenges and how many opportunities were lost in 2020.

So, in today's episode, I've got two segments to help you if you're interested in property investment.

The main segment is a long, detailed discussion about gentrification.

You see…If you understand how gentrification works and what to look for, you can consistently outperform the market with your investments because of the cycle of the suburb.

Then in my mindset message, I'm going to ask you where you're going to be in ten years' time. Because wherever it is, you're surely going to be there. But are you deciding how you're going to get there and if you're doing the right things to get to the right spot?

Gentrification and the cycle of the suburb

Gentrification represents a powerful opportunity to increase both your property returns in the short term, and your overall real estate wealth in the long term.

There is no such thing as one property market in Australia – instead, there are multiple property markets, each with their own specific drivers and fundamentals.

While each state has its own property cycle, suburbs have their own cycles as well.

These suburbs are "gentrifying" – which means that they are going through a period of improvement.

In general, capital growth in these areas will outperform the averages.

These areas go from and ugly ducklings to a beautiful swan and therefore the homes in these suburbs increase in capital value faster than the average.

As a property investor, if you can identify an area at the earlier stages of gentrification and buy while prices are more affordable – you stand to benefit from ongoing capital growth.

What caused this gentrification?

One of the main factors behind this revitalisation was the exodus of manufacturing to the suburbs, driven in part by cheaper transport and better roads.

At the same time, many migrant workers departed to the suburbs to live in detached houses with front and back yards.

Interestingly at around the same time, our society started to experience higher education levels, which necessitated more people being closer to campuses.

These were usually in or near the CBD, and so being close to the city became more desirable.

The diversity of serviced-based jobs located in the CBD, together with the increasing number of women in the workforce and declining household sizes, all made the prospect of living in those smaller properties near the city more attractive to a larger cohort of potential buyers and renters.

Gentrification is a change in the fortunes of a suburb as it is discovered by a higher income demographic, which slowly pushes out the lower-income residents.

This usually occurs where working-class people, tenants and migrants move out as the land becomes too valuable and more affluent people move in renovating the old homes and improving the surrounding shops.

These new, more affluent residents invest time and money improving their new neighbourhood, pushing up prices and rents.

So how do you spot a suburb that is in the process of going through this metamorphosis?

One unusual and unexpected property research strategy to help in this regard might be through look at the dogs walking around the neighbourhood.

Yes, you read that correctly – I am suggesting that you look to the dog breeds for a sneaky clue!

To make things clear: just because a suburb has cheap properties, that doesn't mean it's destined to become the next growth area.

Some suburbs are inexpensive for a reason and won't improve because of various socio-economic factors.

There might be too much industry in the area, a lot of social or public housing or possibly an ongoing crime, gang or drug problem.

Or maybe they are outlying suburbs with poor infrastructure, facilities or public transport, and little prospect for change.

On the other hand, the type of suburb to look for is one that is relatively cheap today but has the potential for future capital growth.

Some of the major drivers of capital growth are:

Proximity to the CBD or the water.

• Adjoining a more expensive neighbourhood so it can benefit from the ripple effect.
• Desirable amenities such as good public transport, a large shopping centre, or within the catchment of a highly prized public school.
• Older attractive houses with character features, that are ready to be renovated.
• Areas where governments are investing in local infrastructure or beautification programs.

Some of the steps you can take to find a suburb that is improving are to go for a drive and a walk.

You'll "know it when you see it" because you'll find evidence that people with money are moving in.

• They will be spending large amounts of money renovating or extending their homes.
• There will be white (the new black) SUV's parked in the driveways, rather than old Ford Falcons and Holden utes.
• The nature of the shops will be changing. The gyms are offering Pilates; the cafés sell cold press coffee; and the deli's serve goat's cheese pizza.
• Gentrifying suburbs will be in the inner and middle-ring suburbs of capital cities, where people of higher social status want to live (within around 40km of the CBD).
• As a property investor, if you can pick an area going through gentrification, one that's shifting from dreary to in demand, you stand benefit from its accelerated growth.

And the good news is that you don't have to get your timing perfect – the gentrification process lasts a number of decades.

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 more here: The Power of Gentrification. How to use the cycle of the suburb to boost your investment returns

Shownotes plus more here: How to use the cycle of the suburb to boost your property investment returns

Some of our favourite quotes from the show:

"While this may improve the suburb, gentrification is something else altogether: it is when more affluent people move into the area." – Michael Yardney

"If you want to own the type of property that's going to outperform, the inner and the middle-ring suburbs are the place that you should be looking at, not where the average investor looks." – Michael Yardney

"Where are you going? Because you know what? Ten years from now, you're surely going to arrive. But the question is, where?" – Michael Yardney

PLEASE LEAVE US A REVIEW

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Success is no accident.

The most successful people in life may not always seem like they have much in common.

How are The Beatles similar to Steve Jobs? Or Warren Buffett and Shane Warne?

But when their traits, habits, and work ethics are distilled down, these unlikely characters share many similarities.

They do the work, they turn up, they believe in themselves and sometimes, they even wear the same clothes.

In today's Build a Business not a Job Podcast I chat with Mark Creedon, founder of Business Accelerator Mastermind about a dozen techniques to triumph.

1. Drive – know where you're going

Whether it is the drive to be the best in the world at a specific skill – spin bowling – or the passion to build the most user-friendly tech experience at Apple, successful people are focused on their end goal.

1. Proven losers

Once people have the ability to spring back from their losses, they are more able to take the risks and challenges life inevitably throws out.

And once that mindset is in place, coupled with a focus on achievement, a loss can create a gain.

1. Let others do their part

There is a necessary time to allow others into the business and to allow them to do the job in their way.

By allowing others to take the load and share their knowledge, the outcome can be greater than the sum of its parts.

1. Avoid distractions – from their goal and in daily life

Achieving a distraction-free state of flow is the best and most efficient way to work and get things done.

1. Communicate. Without it, 'It's like winking at a girl in the dark'

Berkshire Hathaway founder Warren Buffet says communication skills are the most important traits for success.

"If you can't communicate, somebody said, it's like winking at a girl in the dark," he says. "Nothing happens."

1. Break the mold

Successful people are often willing to stand out.

Test cricketer Stuart McGill says spin legend Shane Warne "broke the mold" in cricket, not only with his spin action but also with his off-field antics.

This pairing of performance and personality brought new followers to the game.

1. Think on your feet

The ability to be agile and take chances – even if they fail – is a key habit of the successful.

1. Let's do it

People who thrive see the outcome. They determine a course of action and set their minds to achieve it.

Routine is a common element for those who succeed.

1. Yes, yes, yes, no. Make the decision

Successful people are decisive.

They may not always be right, but at least they make a decision, which allows for a speedier process and new possibilities.

1. 'Done is better than perfect'

This leads on from decisiveness.

The philosophy is about achieving small steps, not about sacrificing quality.

As there is no such thing as perfection – which is different for different people – many successes consider milestones and progress more important than a mythical ideal.

1. 'I get knocked down, but I get up again'

Resilience is considered the most important characteristic for success.

People will inevitably get knocked down, criticised, rejected, or considered wrong, but with stamina and grit, many people overcome.

Old-fashioned hard work, turning up every day, gets results.

1. T-shirt and jeans

Many successful people have systematized their life to strip back distractions.

By either planning ahead or making a routine of everyday tasks, they can reclaim time and energy to think about other outcome-focused enterprises.

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

Shownotes plus more here: 12 habits of highly successful people - Summer Series with Mark Creedon

Some of our favourite quotes from the show:

"I think one of the worst things that can happen is to get it right the first time." – Michael Yardney

"I think one of the traits of successful entrepreneurs, businesspeople, professionals, is that they get going knowing they don't know it all, but they know enough to get going and understand that they're going to learn the rest along the way." – Michael Yardney

"It's just too hard to do it on your own." – 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 many definitions of what it means to be rich.

In today's podcast, we're going to discuss the #1 factor that makes poor people rich.

Being rich is more a state of mind than a dollar amount, though – the rich can be poor and the poor can be rich.

Being rich is really more about having what you want and being able to enjoy your wealth.

You need a sense of balance, and true wealth isn't about money or how many properties or shares you have.

You need your health. You need time to enjoy and appreciate things. You need somebody to love and someone to love you. You've got to have the ability to give back to the community. You need spirituality. You need to be able to grow and learn.

In these podcasts, I talk a lot about money, but money isn't a zero-sum game.

One person's wealth can't stop you from becoming wealthy as well.

And in today's episode, you'll hear more about building the habits that can help you become wealthy.

How can poor people become rich?

If no poor person on the face of the earth ever rose from poverty to wealth, you might have a case that it's impossible to become rich if you were born and raised poor.

But, reality paints a very different picture.

There are thousands of poor people every day who become rich.

According to Forbes Magazine, just in America, there are approximately 1,700 working-class people a day who become millionaires.

And, according to Tom Corley's Rich Habits study, 41% of the 177 self-made millionaires he studied were born and raised in poverty.

What was the #1 factor that helped them shake off the chains of poverty and become wealthy?

Changing their daily habits.

Changing your habits can be hard, especially if you don't know how. Here are some short-cuts to changing habits.

Habit Merging

When an old habit does not perceive a new habit as a threat, it does not wage war against the formation of the new habit.

Law of Association

Old habits can be triggered by the individuals you associate with.

If you are trying to get rid of some old, bad habits you need to limit the time you spend associating with those individuals who act as a triggers for those bad habits and begin associating with individuals who possess the new good habits you are trying to adopt.

You can find these new individuals in network groups, non-profit groups, trade groups or any group that is focused on pursuing similar goals.

Changes in Your Environment

It is much easier to abandon old habits and form new habits when your environment changes.

New home, new neighbors, new friends, new job, new colleagues, new cities, etc., all offer an opportunity to forge new habits.

When your environment changes, you are forced to think your way through each day.

Start Small

It is far easier to change your habits if you start with small habits.

Small habit change involves adding habits that require very little effort.

Examples include drinking more water during the day, taking vitamin supplements or listening to audiobooks while you commute to work.

Schedule Your New Habits

Sixty-seven percent of self-made millionaires in my study maintained a to-do list.

To-do lists are a way of processing success into your life.

One of the tricks self-made millionaires use is to incorporate certain good daily habits onto their to-do list.

Firewall Your Bad Habits

One trick to habit change is to make it harder for you to engage in a bad habit by creating some type of firewall between you and the bad habit.

Links and Resources:

Michael Yardney

Tom Corley - Rich Habits

Get your own copy of our international bestseller Rich Habits Poor Habits

Join Michael Yardney and Tom Corley at Wealth Retreat 2020 – click here and register your interest

Wondering what's ahead for our property markets? Organize a time to speak with the team at Metropole by clicking here

Shownotes plus more here: The #1 Factor That Makes Poor People Rich – Summer Series with Tom Corley

Some of our favourite quotes from the show:

"At no other point in history have so many people escaped bitter poverty in such a short time as in China." – Michael Yardney

"Small changes give you momentum. They increase your confidence." – Michael Yardney

"I think the message is, if other people can do it, you can do 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.

2020 didn't exactly turn out the way I or anyone expected at the beginning of the year.

Just as the bushfires were receding, we started to learn about this virus in China that eventually made its way to our shores.

The pandemic caused massive health issues in Australia and around the world. Many countries, including ours, have had two waves of Coronavirus.

It kept many of us confined to our homes, it shut down major parts of our economy, and many major economies have seen falls of the GDP of 10% to 20%.

Australia did pretty well, comparatively, but we also saw a surge in our unemployment, and we saw inflation plunge. But we got through it much faster than most expected, and while we're officially out of the recession, we're not out of the woods just yet.

So today, I'd like to discuss some lessons from last year and see how they're going to affect our economy and property markets this year with leading commentator Pete Wargent.

Some lessons from last year that will affect this year:

• The world economy is going to look very different moving forward.
• There's going to be a bumpy and slow recovery in Europe and the United States
• There will be a lot more trade tensions in the years ahead
• The pandemic increased tensions in China
• There are a lot of challenges still to go in the U.S. They will probably have a bumpy recovery
• In Australia, the Reserve Bank has stated they won't increase the cash rate for at least three years. The cash rate has a direct impact on mortgages, so this is important for property
• Established and first home buyers are back in the market
• Immigration has taken a hit, with mixed results
  • Some Australians are returning home
  • An oversupply of new apartments is less likely to be an issue
• Technology is being embraced faster and is making people more productive
• Debt is cheaper than it's ever been
• Changes to stamp duty will impact our property markets
• Strategic investors were protected from the ups and downs of 2020 by:
  • Owning the best assets
  • Having financial buffers in places
  • Setting up the right ownership structures
  • Having insurance
  • Obtaining holistic advice
• We discuss why people want to hear negative forecasts
• You need recessions and downturns to test resilience
• Predictions for 2021:
• 8% to 12% price increases for Sydney and Melbourne
• The increase will affect houses more than units
• Brisbane will see 6% to 10% or more
• Perth might experience a rebound as well

Links and Resources:

Metropole's Strategic Property Plan – to help both beginning and experienced investors

Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns

Shownotes plus more here: Here's what the next 12 months have in store for our economy and property with Pete Wargent

Some of our favourite quotes from the show:

"I think one of the effects of COVID is that inflation around the world is going to remain weak." – Michael Yardney

"There isn't the large construction pipeline with lots of new dwellings coming there, so I can't see an oversupply looming in our big cities." – Michael Yardney

"I slept much better because I actually had set myself up by expecting the worst, and being prepared for the worst, I guess, but looking forward to the best." – 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 was recently asked to put together a list of simple rules that distilled my property investment philosophy, so in today's episode, I'll give you 9 simple property investment rules to go by.

In my mindset moment, I'll share 2 inspirational quotes that have helped me and that might be helpful for you as well.

Then we'll discuss some of the differences that separate rich people and poor people.

Hopefully, by the end of the episode, you'll be a little wiser when it comes to money, property, and success.

9 Property Investment Rules

1. Become financially fluent – You need to understand how money, finance, the property market, and the economy work.
2. Adopt a proven investment strategy – Real estate is a high-growth, low-yield investment, so it's best to invest for capital growth.
3. Not every property is investment property – you want properties that are going to out-perform the averages in capital growth.
4. Demographics drive markets – Demographics are more important than short-term ups and downs when it comes to shaping our markets.rules-1752406_1920
5. Real estate investing is a game of finance with some properties thrown in the middle – property is a long-term game, so you'll need financial buffers along the way.
6. The economy and our property markets move in cycles – each boom sets up the next downturn, and each downturn sets the stage for the next boom
7. Follow my 6 Stranded Strategic Approach and only buy a property – properties should:
   1. Appeal to owner occupiers
   2. Be priced below intrinsic value
   3. Have a high land to asset ratio
   4. Be located in an area that continually outperforms the averages
   5. Have a twist that adds value
   6. Come with the potential to manufacture capital growth
   7. Don't focus on bargains — Properties that no one else wants today will probably be the type of property that no one else will want in 5 years' time.
   8. Allow for an X-factor – unforeseen events can be positive or negative, but they're sure to happen.

10 major differences between rich and poor people

If you've been listening to my podcast you'd realise that I believe wealth is a choice that we must all make. Wealth is a mindset

Bill Gates once said, "It's not your fault if you were born poor, but it's your fault if you die poor."

In Australia, there's no reason why you should live in poverty.

Wealth is waiting for you, but you have to make up your mind if you want it in your life.

For years I studied the rich then I became one of them, and for the last decade I've mentored over 2,000 people to become rich

Here are 10 of the major differences I've realised that separate rich and poor people:

1a. Poor people are skeptical.

I distinctly remember a nephew of mine saying, "Those plumbers are a rip-off! They'll charge for things they haven't done.

He thought that everyone unjustly wanted his money and that everyone is out there to get him. Do you know someone like that?

1b. Rich people are trusting.

Rich people have the tendency to trust those they meet (within reason) and give others the opportunity to be themselves.

2a. Poor people find fault.

People who are poor are always looking for the problems instead of the solutions. They end up blaming their environment, circumstances, jobs, weather, government and will make an extensive list of excuses as to why they cannot be successful.

2b. Rich people find success.

Rich people understand that everything happens for a reason.

Rather than letting life happen to them, they take direct action and make big things happen. They put aside all the excuses and eradicate their blame lists because they have to do what must be done.

3a. Poor people make assumptions.

When it comes to knowing the truth, poor people often make assumptions.

If they want to reach out to a someone, they might say, "They probably don't have time to talk to me." Instead of checking the facts or asking questions, they never make a true attempt when it comes to getting what they want.

3b. Rich people ask questions.

Many rich people ask the question, "What if?"

For instance, "What if I wrote an email to that person and he or she answers?" If you begin to ask questions, you will save yourself a lot of hassle.

The power is in the hands of those who ask the right questions. Then don't answer your questions, question your answers.

4a. Poor people say, 'they' and 'them.'

Have you noticed how the people at the checkout at the supermarket say, "They never have enough cashiers. I don't know what's wrong with them." Obviously, these people don't take any ownership and responsibility for their job. They certainly separate themselves from the job that was paying her.

4b. Rich people say, 'we.'

At one of my favourite restaurants, the server said, "We take great delight in cooking our steaks in real fire."

Her sense of pride and ownership stimulated me, which allowed me to give her an honourable tip. Surely, you will be rich when you invest more into what you believe in.

5a. Poor people want the cheapest way.

Have you noticed how poor people tend to look for the cheapest items, bargains, free advice. Unfortunately, cheap is always cheap.

5b. Rich people want the best way.

Rich people will go the extra mile to find quality – they recognise that price is what you pay and value is what you get.

They don't limit themselves to price and often seek service while they shop. They're prepared to pay for mentors, coaches, and advisors

6a. Poor people think money is more important than time.

Millions of people all over the world are trading their precious time for money. You can always get $500 back, but you can't get 50 hours again. Nonetheless, the majority of people trade time for money and never realize their true potential because of it.

6b. Rich people know that time is more important than money.

Rich people never trade time for money. Moreover, they seek fulfilling experiences that dramatically alter their lives. Their careers are more focused on doing what they love and helping others, instead of merely clocking in for a meagre pay cheque.

7a. Poor people compete.

When a poor person sees an opportunity, they find out how others are doing it and copy them.

Most often, they never consider another way of doing it. Instead, they settle in the belief that doing what others are doing is the best thing they can do for themselves.

7b. Rich people create.

On the other hand, the rich like to think outside the box and find new opportunities

8a. Poor people complain, condemn, and criticise.

Most poor people have learned how to be poor from their parents. Their family members have conditioned them to believe that everything is "wrong" instead of right. If you've ever heard someone ask, "What's wrong?" you'll know what I mean.

8b. Rich people praise and enjoy their blessings.

Rich people know that they have many privileges, and they don't take it for granted.

Because of their appreciation of gifts, love, and circumstances, they are able to generate more.

9a. Poor people seek amateur advice.

They often listen to the opinions of others and seek approval from acquaintances. They believe almost everything they hear without questioning authority. They accept opinions as facts and prohibit themselves from doing research once satisfied with an answer.

9b. Rich people seek expert advice.

Those who are rich have learned to think for themselves.

If they cannot figure out something, they seek expert advice. Usually, they pay for the advice and are given a wide variety of options. They learn the experts only make suggestions, which means that they aren't particularly confined to a specific action.

10a. Poor people have big television sets.

Poor people use their free time to avoid the art of thinking (which is the most challenging task) and zone out to what many have conformed to believe is "entertainment."

10b. Rich people have big libraries.

Wealthy people are educated and read a lot of books. They use their knowledge in a way that benefits them.

Instead of drifting off in random activities, they seek to get within their minds to understand themselves, others, and the world in which they live.

Bottom line:

To get a true perspective on how to become rich, you must study rich people. After all, you become what you study.

If you're currently surrounded by people who aren't yet rich, just do the opposite of what they do.

Soon enough, you'll be able to reach your financial dreams!

Links and Resources:

Michael YardneyMetropole Property StrategistsRich Habits Poor HabitsMichael Yardney's Mentorship Program

Shownotes plus more here: 9 Property Investment Rules You Must Understand 10 Major Differences Between The Rich and The Poor – Summer Series

Some of our favourite quotes from the show:

"It's really critical to understand if you're being impartial advice, or if you're being taken advantage of by the many vested interests out there after your money." – Michael Yardney

"Trying to make something perfect actually prevents us from making it just good." – Michael Yardney

"What if what you know is only one of the many possibilities, and there are some better ones, other ones, different ones? What if what you know could be further enhanced by what other people know? What if what you already know is actually 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.

For many of us, 2020 has been a year to forget, but I don't think we're going to do that easily.

I'm confident that we're going to remember 2020 for a long time.

I don't know when you're going to listen to this podcast, but it's almost certainly time for me to wish you a happy, healthy, and prosperous 2021 – a much better year ahead.

2020 brought a lot of its challenges to us, but it's actually been a great year for me, my family, and my team, as well as for this podcast and blog.

I look forward to continuing this education in 2021, but for today, I want to say thank you for being part of my community, and to share with you 20 lessons I learned in 2020.

Michael Yardney's 2020 lessons

Each year brings its own set of wins, challenges, and lessons to learn and 2020 was certainly no exception.

It's been an extraordinary year.

Nobody could have foreseen all that's happened, including the coronavirus, its economic fallout and the way our lives changed.

But as we head into 2021, I can't help but reflect on what Australia as a country has accomplished and what I've achieved personally, what I've overcome, and the lessons I want to carry with me into the New Year.

Here are my top 20.

1. Expect the unexpected.

Every year an unexpected X factor comes out of the blue to undo the best laid plans – sometimes on the upside (like the miracle election result in mid-2019) and sometimes on the downside like Covid19 in 2020.

While an X factor seems to come every year, a major Black swan event as some call it, one that "breaks the world", tends to come every decade.

1. Focus on the long term

Strategic investors have a long-term focus and don't change their plans based on what's happening "now".

In fact, they don't buy investments that are working now – they investment in the type of assets that have always worked.

Clearly this was the thinking behind Warren Buffets quote "Be fearful went others are greedy and be greedy with others are fearful."

1. It's the media's job to entertain you – not educate you.

Remember… it's media's job to get eyeballs on the advertisers' content, rather than to educate you.

Think about it… how many of those expert's forecasts this year came true?

But look how many people worried and stressed about the potential outcomes that just didn't occur.

Unfortunately, being overwhelmed with misinformation led many people to live in a state of fear and anxiety and caused some to make disastrous investment errors.

1. Take economic forecasts with a grain of salt.

If you're reading something frightening in the business section, or hearing it on TV, or learning about it from your neighbour, it's almost certainly too late to act—because the information is already reflected in market – in either the share price or property prices.

1. 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 in their own hands and do something about it.

Don't let them stop you achieving your financial dreams – the doomsayers are always wrong, at least in the long term.

6: No one really knows what's going to happen to the property markets.

As a real estate investor, while it's important to have mentors make sure you're listening to somebody who has not only built their own substantial property portfolio, but someone who has kept their wealth through a number of cycles. There are just too many enthusiastic amateurs out their offering investment advice at present. 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 and within each state there are multiple submarkets depended upon price point, geography and type of property.

1. Don't try and time the markets.

Even though they are armed with all the research available in today's information age, economists never seem to agree where our property markets are heading and usually get their forecasts wrong.

That's because market movements are far from an exact science.

And if you think about it, the top and the bottom of the market are really only one or two days or weeks or months in the cycle.

1. 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.

Remember that each property boom sets us up for the next downturn, just as each downturn sets the scene for the next upswing.

1. Property Investment is a game of finance with some houses thrown in the middle

If you can only afford to own 2 or 3 properties, make sure they are all "investment grade" properties that are working hard for you.

1. Invest for Capital Growth

At Metropole, our 40-year analysis of investment returns shows that properties with higher rental yields generally deliver low overall returns for investors.

Our analysis proved that over the medium to long term, properties with lower rental returns (but stronger capital growth) delivered significantly higher overall returns (i.e. capital growth + rental return), while "cash flow properties" with high rental returns delivered lower ones overall.

1. There will always be reasons not to invest

Where investors get into trouble is that rather than focusing on their long-term goals, they see these crises as once in a generation events that will alter the course of history, when in reality they are just the normal path of history.

1. Property investment is risky in the short-term, but secure in the long term

I found it takes the average property investor around 30 years to become financially independent, but most don't make it because they can't stay the distance in part because they don't have good cash flow management.

Many people get into property investment to improve their cash flow position, but if they don't have good money habits to start with taking on more debt only compounds the problems.

1. Plan for the worst and look forward to the best.

As a property investor, I protected myself from the challenges that 2020 brought by:-

• Owning the right assets – investment-grade properties in desirable locations.
• Having multiple streams of income from a diversified portfolio of residential, commercial, and industrial properties as well as shares.
• Owning my assets in the correct structures that protected my interests and were tax efficient.
• Having set up financial cash flow buffers to see me through difficult times.
• Protecting myself and my assets with adequate insurance policies.

1. 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. Sometimes negative experiences, mistakes, and failures can be even better than success because they teach you something new which another win could never teach you.
2. Cautious optimism is better for your investment health than perma pessimism.

Life is not fair – get used to it.

But having said that, optimists are more successful in all areas of life than pessimists, or so-called realists (who are just pessimists in disguise). And this includes the realm of investing.

1. Time is a limited resource – don't waste it.

On some level, most of us know that life is short, but 2020 taught us and solidified the fact that we don't get a second chance and the importance of truly appreciating what and who we have in our lives whilst living to the fullest.

1. The only certainty is change

Rather than worrying about all the changes occurring, I've learned the concept of having a useful belief about the changes that are happening to me and seeing what good will come from them.

The more I feel in control of my life, the more comfortable I feel and the better I perform in all areas of my life.

1. Worry Better

Forget the saying "don't worry be happy." Instead, worry the right way – it's better than not worrying at all.

You see…worry can play important role in your life, and it doesn't have to be destructive.

1. This too shall pass.

How often do we need to hear the world as we know it is coming to an end before we realize that the world as we know it has not come to an end.

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: 20 2020 lessons you don't want to forget

Some of our favourite quotes from the show:

"If you saw it coming, you'd be prepared for it. But no one was prepared for these X factors." – Michael Yardney

"Strategic investors have got a long-term focus and they don't change their plans on what's happening "now"." – Michael Yardney

"There's nothing new about these doomsayers – they've been peddling the same forecasts for a couple of decades." – Michael Yardney

PLEASE LEAVE US A REVIEW

Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

You're in for a treat today because I'm going to chat with one of my very early mentors when I started my property investment journey.

I bought my first investment property in 1971 without much money, having saved a little deposit and going halves with my parents and I definitely didn't understand the rules of the game.

I just knew that wealthy people owned property and I wanted to be wealthy.

At that time, I didn't have any books on property investing and clearly there were no podcasts. There weren't even investment tapes or CDs available in those days.

One of the first books I read was by Robert G Allen, an American author who wrote the book Nothing Down.

Obviously, the concept of buying properties with none of my own money – nothing down as the Americans would say, or no deposit – seemed a very attractive proposition.

While it may well have work in the United States, those principles did not work here then or today, even though some people still suggest you can work your way around the system by investing in property with no money down.

Let me make it clear: I don't advocate that strategy and never have.

However, Robert Allen went on to write 10 books including five New York Times bestsellers and I kept buying them and learning from him.

Especially his great book Creating Wealth which explained how to retire using his seven principles of wealth – this book, which we'll be discussing in my chat with this legend of real estate today, changed my way of thinking about money and property investing

Robert's subsequent books and training courses also were part of my early investment learnings and still stay with me today, so I was excited to have the opportunity to interview Robert Allen recently. I'm sure you going to get a lot from our discussion.

But here's a word of warning….

Robert does mention his concept of buying property with nothing down and that you can go and find distressed vendors and take over their mortgage and buy a property at a huge discount.

I was going to cut that section out of the interview but decided to leave it in, not out of courtesy to Robert, but because while these principles may work in the United States where the economic situation is very different, they definitely won't work for property in Australia.

However, I decided to leave that segment of the interview in so that you can hear how some people think and how others in the property market in Australia are incorrectly teaching these principles to naïve investors today.

Let me be clear, our housing markets have moved on and the next property wave has commenced.

There are very few mortgagee sales happening, and there are very few distressed property owners who would let you take over the mortgage as Robert suggests. As I said the situation maybe different overseas, but this particular aspect of his investment strategy just doesn't work in Australia should be very wary of those selling courses trying to teach you those techniques here. There are legal and stamp duty reasons why this doesn't work here.

It's another example of how many overseas gurus just don't understand the local market here in Australia and why their teachings are not necessarily relevant here.

The fact is, there is a shortage of investment grade properties in the market at the moment with more buyers than sellers. You won't get a bargain if you look for the right type of property – an investment grade property - that will grow at wealth producing rates of return.

It is often said you make your money when you buy your property, but it's not because you buy a bargain, it's not because you buy a secondary distressed property cheaply as Robert will recommend, it because you buy the right of the property – one that will grow at above average rates of capital growth, a property that will be in continuous strong demand by owner occupiers and tenants who can afford to and will be prepared to pay you higher rents.

Over the years I have had many mentors, and as I explained Robert Allen was one of my early mentors but like with everything in life I've chosen to select portions of his learning the applicable to Australia and discard others that are not.

Of course, this is easy for me today with the perspective of close to 50 years of investing – I know what works and what doesn't, but I can understand why beginning investors get lured by the concept of nothing down – remember Real Estate investing is not a get rich quick scheme and wealth is the transfer of money from the impatient to the patient.

Now that you've heard that disclaimer, there is so much great information in my interview with Robert Allen, so please let me know and welcome to today's episode of the Michael Yardney podcast.

Some of the topics that Robert and I discuss

• Robert started doing research on how to buy property with little or no money down because he had little money when he started
• According to Robert, the reason Nothing Down became so popular was because people were so skeptical about it.
• Robert's advice for people facing challenges in the COVID era
  • More people are highly motivated to sell and can't wait because of the pandemic
  • It can be beneficial to work with a partner who may have better financials
• Safety vs. Freedom – entrepreneurs like to go outside their comfort zone
• Most people don't think like entrepreneurs, because they're taught by employees
• Diversification isn't necessarily the goal – it's better to focus and become an expert in one thing
• Win/win is a fundamental principle
• How to build enlightened wealth

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

Find out more about Robert G Allen

Shownotes plus more here: Lessons for an International Property Legend – Robert G Allen, a 50-year property veteran

Some of our favourite quotes from the show:

"Most people don't believe they can make it, they can do it, whether it's real estate, internet businesses, even relationships." – Michael Yardney

"If you avoid risk, you're also avoiding opportunities." – Michael Yardney

"You shouldn't necessarily diversify, you should concentrate on something you're good at, and become a real expert." – 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's podcast is a little different: it's all about me. This is an interview with me. I hope it will help give you some insights about what makes me tick, what I've learned, what I've done wrong.

This interview is with Peter Fritz of the Office Anywhere Podcast. Peter is a client, a successful property investor, and an author who writes regularly on Property Update. Peter has had his ups and downs like all of us have. He went through a midlife crisis, recognized what's important in life, like his family and his children, and he now works in a different way.

He's less stressed and closer to his family because now he no longer has a commute, he works at home. That's what his Office Anywhere blog is about, to live and work on purpose. I think some of that is going to come out as he chats with me. So I hope you'll gain some insights and learn some new things from this episode.

Topics discussed in Peter Fritz's interview with me:

Whether it's been difficult to swim against the tide of get-rich-quick mentalities

How Michel got into real estate investing in the first place

What can happen when you're overconfident and impatient

The importance of investing in oneself

The value of perspective

The definition of wealth and success

How the pandemic is feeding into the desire to build wealth independently

The opportunities available because of the pandemic

The work from home situation and how it's working for Michael

Tools Michael and his team are using to manage their projects as they work from home

Whether Michael's team will continue to work from home post-pandemic

Michael's heroes, and why they're his heroes

Why it's important to listen to people you don't agree with

Darker periods in Michael's business journey

Where Michael feels most inspired

What matters most to Michael these days

What legacy Michael would like to leave behind

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 Peter Fritz's Office Anywhere Podcast

Shownotes plus more here: Methods, Mindset and Masterstrokes of a 45 Year Investor

Some of our favourite quotes from the show:

"I would rather make more Australians wealthy and help improve our communal wealth and the beauty of our country rather than knock other people." – Michael Yardney

"If everything's important, nothing's important." –Michael Yardney

"I've also learned not just to read and speak to people who confirm my assumptions and my beliefs." –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 interesting benefits I experienced from the prolonged lockdowns during 2020 was that I've been working more efficiently.

Prior to COVID-19, I worked from home one or two days a week and from the office the other days. But interestingly, working from home full time made me much more efficient with my use of time.

So, how do you make the most use of your time? How do you make sure you're working most efficiently?

That's the topic of discussion today in my monthly Build a Business, Not a Job podcast with Mark Creedon.

But even if you're not in business, and even if you're not a professional, this podcast is going to be valuable, because for most of us, it seems there's never enough time in a day.

However, we've all got the same 24 hours to accomplish a task, and some of us seem to be exceptionally good at it, while others seem to struggle meeting their deadlines.

So, my question is, why are some people so much more efficient at using their time than others? And the answer lies in time management.

Today, I'm going to share with you how successful people manage their time, so you can make the best use of yours.

We all have the same amount of time but some of us squander it, waste it, don't use it efficiently, so my aim today is that at the end of this podcast that you'll be able to see how much time you have in the day and you'll find something in that will help you get more out of your day.

#1 Time is your most valuable and scarcest resource

• You should realise how truly valuable time is. 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.
• You'd be surprised how much you can achieve in one minute, and your health you could take some deep breath stretch and relax, in your relationships in one minute you can tell somebody that you love them. In business you can come up with a breakthrough idea in one minute.

#2 Identify your most important task (MIT) and do it first.

• What is that project that's going to double the size of your business what is that task that he's going to get you that promotion at work, and then break it down – what domino can I tip over today that will lean on the next one and the next one?
• Schedule time to work on your MIT – preferably in the morning –– we are at our cognitive best for a two-hour window of time first thing in the morning.

#3 Work from your calendar – not a to do list

• 41% of items that people have on there To Do list never get done it all. A To Do list is the graveyard of important but not urgent items.
• If you really want to get something done – pick a day, a time, a duration and put it in your calendar

#4 There will always be more to dos

• I first started out five days a week wasn't enough, so I work seven days a week. When I first started out eight hours a day wasn't enough – so I worked 10 and at times 12 hours a day.

#5 Always carry a notebook

• Maybe it's journaling, maybe it's capturing ideas words of wisdom etc
• Our minds are best used for processing different ideas, not for holding onto information

#6 Control your inbox

• Shut off the notifications on your emails and go to inbox when you want to do it, not when somebody calls you.
• Process emails three times a day.

#7 Schedule and attend meetings as a last resort

• You may not be in the position that you could say no to your boss, but it is likely you can say no to a lot of meetings or make them shorter meetings, stand-up meetings.
• If you're most productive in the morning say no to meetings in the morning.

#8 Say no to everything that doesn't support your immediate goals.

• The problem is when you say yes to one thing you're actually saying no to another thing, or many things.

#9 Follow the Powerful Pareto Principle

• 80% of your results will come from about 20% of your activities, so slow down and look at all the work you're doing and then work out the handful of tasks that give you the most results and focus on them

#10 Focus on your unique strengths and passions

• Learn to delegate – remember the 80/20 rule

#11 Batch your work

• Leading consultant Dan Sullivan says entrepreneurs should have focus days, buffer days and free days
• Free days are days when you don't work – you're resting and recharging.

#12 If you can do a task in less than five minutes do it immediately

• The touch it once principal

#13 Productivity is about energy and focus, not time

• Look after your body, sleep take more breaks
• We're designed to sprint and have a break

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

Shownotes plus more here: How successful people manage their time revealed – with Mark Creedon | Build a Business, Not a Job Podcast

Some of our favourite quotes from the show:

"We've all got the same 1440 minutes every day." – Michael Yardney

"You don't get most of the things on your to-do list done. You never do." – Michael Yardney

"Be careful about what you accept." – 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.

It's clear that we've worked our way through the COVID-induced recession and the resultant lull in our property markets has now turned the corner and the markets are on the move again.

Property predictions are now coming thick and fast. One is that there's an elephant in the room that most aren't aware of.

That prediction was made by property researcher John Lindeman, and I'm going to ask him what he means by that.

But first, I'm going to give you the answer that I gave to a journalist who recently asked me "why are property values going up at the moment, when wages aren't going up and unemployment is still high?"

This should provide you with some insights as to what's ahead for our property markets and help you make your own plans. And of course, I'm also going to share my regular mindset message.

Why are property prices rising?

This isn't the same as asking why house prices are resilient.

Swelling disposable incomes at a time of falling interest rates and therefore lower property holding costs have left many borrowers much better off than they would have been a year ago. And we know that property is a game of finance and if credit is easy and holding costs are low, property values go up.

Like the virus itself, the economic consequences of the virus have not hit everyone equally. The people hit hardest by the pandemic tend to be lower income workers more likely to be tenants than homeowners. This has hurt the rental market, especially the apartment market, but not the overall property market.

Thanks to government intervention to support jobs, 90% of Australians are still employed. At the same time, many workers have recently seen their pay packets go up because of tax cuts. Australians have also wiped out a lot of credit card debt and stashed much more cash than usual as a buffer against Coronavirus.

So, a significant group of Australians have secure income, secure employment, and are in a position to take advantage of low interest rates.

The Elephant in the property market

One respected researcher believes there's an elephant in the room that many people just haven't been paying attention to and that happens to be John Lindeman

Now just to make things clear…John isn't the Elephant – John is widely respected as one of Australia's leading property market analysts. With well over a decade of experience researching the nature and dynamics of various types of assets at major data houses.

In a recent blog he suggests that an elephant is about to make his presence felt in the property market and it's a potentially significant game changer.

It won't be deterred by rising unemployment, housing finance restrictions, buyer confidence or economic downturns.

It has the power to radically alter housing prices and rents, and it's about to be unleashed on our property markets. What is this elephant in the property market and where will it reveal itself?

The elephant is the massive movement of people from one State or Territory to another that will result in large changes to our property markets.

Before the pandemic there were twice as many people moving as there were new residents arriving or being born here, but there's much more to it – these relocators pack a double whammy. Not only does every moving household increase demand by needing a new home where they move to, they leave an empty one behind, increasing housing supply where they move from.

• Even when our State borders reopen, the potential effect of these relocations is still likely to go unnoticed. This is because many statisticians and economists quote and rely on net interstate migration numbers, not the total number arriving or leaving.
• Net interstate migration hides changes in housing needs and preferences
• Where will the winners and losers be?

The most recent housing approval figures show that while approvals for detached dwellings has increased, there is actually very little in the pipeline for new apartments.

Developers are often blamed for building unsightly, even unsafe high-density apartments and encouraging speculative investment, yet housing development has been the means by which our cities and towns have grown and been rejuvenated.

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

John Lindeman – Lindeman Reports

Shownotes plus more here: Why on earth are property prices rising + The elephant in the property market with John Lindeman

Some of our favourite quotes from the show:

"Now all credible economists agree that our property markets are going to enjoy a period of strong capital growth." – Michael Yardney

"I couldn't go from being unknown in the real estate community to being the most respected expert straightaway." – Michael Yardney

"What I'm trying to say is at the time, I set myself some audacious goals that were unrealistic for me." –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