Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

Are men and women different when it comes to their wealth habits?

The simple answer is yes and in today's episode you may find out a little bit more about how you're wired.

You see… we all have some rich habits and some poor habits, so after this episode, you'll be able to adopt some great rich habits and eliminate some of your poorer habits.

Differences Between Rich Habits of Men and Women

#1 Gambling

Women gamble less than men.

Not only do fewer women gamble, but for the women who do gamble, they gamble less frequently.

#2 Risk Tolerance

Men have a higher risk tolerance than women.

Men are by nature hardwired to be more aggressive than women. This aggressive nature gives men a higher risk threshold. This is a good thing and a bad thing.

A low risk tolerance is a good thing when it comes to making big purchasing decisions.

Women are more apt to study the details of a major purchase than men. The devil is always in the details, so understanding the details can save you from making a big purchasing mistake.

#3 Reading

Women read more than men. That's the good news.

The bad news is that women read more for entertainment. Men, conversely, read more for learning and self-improvement.

#4 Communication

Women are better communicators than men. In fact, the average woman speaks 7,000 words a day compared to 2,000 for men.

Good communication is a Rich Habit. Miscommunication damages relationships, businesses, negotiations and can lead to mistakes and failure.

Because women are better communicators, they are better at seeking feedback. Feedback is critical to understanding what to do and what not to do. Good feedback minimizes mistakes and reduces the probability of failure.

#5 Creativity

Men are more creative than women. This is physiological.

Men have a smaller corpus collosum. The corpus collosum is the bundle of neural never fibers that separates the right hemisphere of the brain from the left.

Recent studies on creativity have shown that those with a smaller corpus collosum are hardwired for greater creativity.

#6 Organizational Skills

Women have greater organizational skills than men.

Because they pay more attention to details and are more cautious by nature, they tend to do more planning. This makes them better organized when it comes to facts then men.

#7 Saving Money

Women are better at saving money. They are more cautious with their money. They comparison shop to get the best deals. They look for discounts.

Links and Resources:

Michael Yardney

Metropole

Tom Corley Rich Habits

Get your own copy of our international best seller Rich Habits Poor Habits

More details at the episode page: 7 Shocking Differences Between Rich Habits of Men and Women | RICH HABITS, POOR HABITS Podcast

Some of our favourite quotes from the show:

"The habits that you have are the reason that you either live in a beach house or in a slum in the outer suburbs." – Michael Yardney

"Poor communication damages relationships, it's not as good in business, it makes it hard for negotiation, and it leads to misunderstanding, mistakes, and failures." – Michael Yardney

"You are today the result of all the things you've chosen to do and all the things you've chosen not to do." – Michael Yardney

PLEASE LEAVE US A REVIEW

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

If you're a property investor, today's episode is a must.

Why? Because the tax man is after you – you and all property investors.

Recently, the tax department recognized that 90% of property investors' tax returns contain an error. 9 out of 10!

They've found a number of common errors, and today Ken Raiss and I are going to tell you what they are and how to avoid them.

Remember, if you follow the letter of the law, you'll have no reason to worry even if you do get audited.

Will your rental property make you a target for the tax man?

The Australian Taxation Office might be taking a much closer look at your tax return this year than you would like.

Due to significant increases in the ATO's operating budget particularly with technology, property investors are in the ATO sights.

There are several key areas that the ATO sees as possible 'errors" made by property taxpayers and 2019 will see a doubling of taxpayers being audited.

And with the ATO estimating that over 90% of tax returns contain errors it's easy to understand their new-found enthusiasm in reviewing property investors deductions.

Some of the more common areas taxpayers must pay particular attention to include:

1. REPAIRS VS. MAINTENANCE

The tax man wants to ensure you don't get immediate tax write-offs for improvements by calling them repairs.

In short, a repair brings an asset back to the same condition it was in when you first acquired the property.

An improvement, on the other hand, is improving the asset beyond its original condition and/or changing the nature of an asset and is depreciated as opposed to written off in the year of expenditure.

The cost of repairs can be claimed in full in the year they are incurred whereas an improvement must be depreciated over its useful life.

It is not always easy to ascertain whether a cost is a repair or improvement or both, so in many situations, you should obtain tax advice.

2. INTEREST EXPENSES

The deductibility of the loan will be determined by its purpose.

So, make sure your loans are correctly structured. Keep good records i.e. you can demonstrate what investment asset each loan relates to.

Errors include incorrectly claiming interest that was not tax-deductible (i.e. debt was not used to produce taxable income e.g. a home loan) and/or the loan purpose was not able to be proven by the taxpayer e.g. they mixed purposes in one loan.

3. PROPERTY DIVESTMENTS

If you sell an investment property you will need to calculate the capital gain (or loss)

This capital gain will be taxable and if your property is owned for over 12 months you will benefit from a 50% general discount if purchased with the intention to own the property as an investment. If you purchased the property with the intention to sell it at a profit, you can't claim this CGT discount.

Capital works depreciation (the depreciation benefit you claim against your tax) needs to be added back to your profits thus increasing the profits from your sale.

4. PERSONAL EXPENSES INCLUDING HOLIDAY HOMES

The ATO's main concern is making sure that any deductions claimed with respect to holiday homes that are rented out for part of the year are correctly apportioned.

If you rent out your holiday home, carefully apportion your expenses taking into account whether the property was rented at a rate below market (to friends or family), whether it was available for rent during peak periods, if the owners unreasonably refused tenants and whether the owners genuinely took steps to find tenants during periods it wasn't occupied.

If you own a holiday house that is partly rented out and partly occupied, ensure you use the services of an experienced registered tax agent.

5. RENTING PART OF YOUR HOME

If you are renting part of your home, you must declare the income.

Costs associated with the income are proportionally deductible.

The renting of a room or the total property on say AirBNB must also be reported to the tax office.

Renting part of your home will create annual tax liabilities and therefore a proportional loss of the Main Residence Exemption you receive for Capital Gains Tax when you sell – in other words, you'll have to pay some CGT when you sell your home.

6. SUBSTANTIATION OF EXPENSES - RECEIPTS

The onus is on the taxpayer to prove a tax deduction is legitimate.

In the absence of this proof, the ATO will simply deny the deduction.

The ATO found that many taxpayers failed to produce sufficient evidence of expenses claimed e.g. receipts.

A simple answer to this is to ask your managing agent to pay for all expenses from the rental income they collect for your property.

Doing this means you no longer need to take responsibility for record-keeping. At the end of the financial year, your property manager will provide you (and your accountant) with a report itemising all your income and expenses for the year.

What about the penalties?

The number of penalties that the ATO seeks to charge for 'errors" will depend on the circumstances and they will normally range from 25% to 75% of the tax liability plus interest.

Talk to your property tax specialist to ensure you will be able to legitimately claim any expenses as well as identifying what you can claim. As an example, if you own property with another person then you need a specific type of depreciation schedule to allow you to maximise the initial year's deductions.

Links and Resources:

Michael Yardney

Metropole Property Strategists

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

Ken Raiss - Metropole Wealth Advisory

See the full show notes here: Attention property investors – the tax man is after you and here's what he's looking for

Some of our favourite quotes from the show:

"Occasionally investment loans get tainted with private issues as well, and the tax man is looking at that a bit more carefully." – Michael Yardney

"The idea is to put all your excess cashflow – and often the rent – into your offset account, but it's really important to document everything very carefully, keep thorough records." – Michael Yardney

"The tax man is after you, but they don't even know who you are. You're just a number. Don't be scared by it, but prepare yourself by putting your house in order before you start." – 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

Do you want to become rich? In today's show we're going to look at the habits you're going to have to form to become richer, more successful, and get further in life.

This podcast is part of a series I've been doing with Finder.com.au. and in this episode, Mark and Sally ask me some of the same questions that you're probably also been thinking about with regards to what makes the rich different, apart from the obvious – they have more money.

Self-made millionaires exhibit some of these Rich Habits:

They plan their future - set daily, weekly, monthly and long-term goals

Making money is one thing, but creating wealth is an entirely different thing.

They wake up early and plan their days

For many, their most productive hour is early in the morning before all the interruptions start

They exercise and remain physically fit

You need to be fit emotionally and physically to fire on all pistons.

They're good savers – the spend less than they earn, save the difference and invest

They put together a financial plan, they budget, they focus on increasing their incomes and they automate their savings

They get an early start with wealth building and allow compounding to work in their favour.

They understand the importance of delayed gratification

There's a mindset that's prevalent these days. It's one of instant gratification in an on-demand society that looks for quick results with very little effort. The rich know that life doesn't work that way. You need to put in the sweat equity if you're looking to gain serious results

They educate themselves, they're always learning

They read daily for education – not entertainment

They upgrade their skills and knowledge to make themselves more valuable

They hang around the right people

You are the average of the 5 people you hang around the most

There's a saying: "Your network is your net worth." In other words, if you lie down with dogs, you'll come up with fleas.

They seek advice and have mentors – prepared to pay for it

Be very careful selecting your mentors – there are many life coaches, business coaches and mentors out there who haven't achieved much in their own lives and while they are well many, often caring people – but they can't teach you something that they haven't really achieved themselves. Find someone who has already achieved what you want to achieve.

They have earned efficient time management

Everyone in this world has the same amount of time. The 24 hours of each day is life's greatest equalizer. But it's what you do with your day that will make a difference to how productive you are, how much value you add and how much money you make.

They don't gamble

The poor see gambling as their easy way out of the rat race. The Rich know gambling is a tax for people who can't do math.

They are generous – give to charity

The rich believe that if you get to the top you have to send the lift down to bring others up.

Links and Resources:

Michael Yardney

Metropole Property Strategists

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

Get the book: Rich Habits, Poor Habits

This show originally appear on the Finder.com.au Pocket Money Podcast

You can read a transcript of the show on Finder or here : Want to get rich? These are the habits you need to learn

Some of our favourite quotes from the show:

"Your outside world is really a reflection of what's going on inside." – Michael Yardney

"If you eat like healthy people eat and you exercise like healthy people exercise and you think like healthy people think, you're going to change your body shape and your weight and your health, and much the same with successful people." – Michael Yardney

"It's never too late, but it takes a long time to create wealth, particularly in today's low interest rate, low wages, low return environment." – 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'm going to teach you the most important money lesson you can teach your children to help them become successful in life.

This lesson is relevant to you as well, so even if you don't have children, you can learn something from listening to this episode.

1. Today's debt equals tomorrow's slavery

Limiting your debt obligations when you're younger will mean having more control over your personal finances later in life and avoid the financial chains that bind your freedom to choose how you live life.

1. He who dies with the most toys is not the victor

The truth is possessions don't make for a rich life, it's the experiences and people – the things that money can't buy – that make you truly wealthy.

1. Taking responsibility makes you the master of your own destiny

The truth is if you're courageous enough to cast a critical eye over your life, recognise you are where you are as a direct result of your own choices and take ownership of your decisions, you build confidence, self-esteem, and self-respect.

1. Patience and waiting is luck is made through hard work

Understand the difference between wants and needs and recognise that all the money you spend on those material items you just 'had to have' today, is less that you'll have to fund your retirement with tomorrow.

1. Luck is made through hard work

While a handful of people have lucked out by winning the lottery, truly successful people do the hard yards to reach the pinnacle of their chosen field or endeavor.

1. You don't need millions to achieve financial freedom

Financial freedom is not dependent on money itself, but on your relationship to it and the level of personal responsibility and fiscal discipline, you're prepared to exercise throughout life.

1. Spend less than you earn…and invest the rest

Aim to invest at least 10 percent of your earnings and the power of compounding will take care of the rest. And speaking of the power of compounding…

1. Your youth won't last forever, so use it wisely

Given enough time, compound interest is so effective that Albert Einstein called it the most powerful force in the universe.

The bottom line

Unless we teach our children good daily success habits and level the playing field, the rich will continue to get richer and the poor will continue to get poorer.

So it just might pay (literally) to give them a bit of your time.

The most important lesson to teach your children about money

Patient people are more likely to save their pennies than seek "easy" (and expensive) credit because they are happy to wait for a new car or big screen TV.

But we need to remember that this skill isn't natural for most people.

Humans are wired for instant gratification. That's one of the reasons many high-income earners are not 'rich.'

You'll often find the more they earn, the more they spend and they end up on a treadmill where they tend to spend more than they earn because they need to support a lifestyle that has little or no enduring value but has high fixed costs to maintain.

Learning delayed gratification isn't easy but it can become a skill in your Rich Habit toolkit if you follow a few simple tips.

1. Write down a list of money goals and put them somewhere that you can see them every day.

1. Every time you're tempted to purchase something consider whether it's a want or a need.

We all can develop the Rich Habit of delaying gratification and accepting what good things are worth waiting for.

Links and Resources:

Michael Yardney

Metropole Property Strategists

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

Some of our favourite quotes from the show:

"Most Australians don't teach their children anything about money, meaning, we're raising our children to be financially illiterate." –Michael Yardney

"The fact is, there's no such thing as rich victims." –Michael Yardney

"When it comes to a gadget or a fad, most of us just don't have self-control." –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

Overwhelm is the feeling that everything is just too much, that feeling that we will never get everything done, that there are too many things in the to-do list at the end of the day and that we don't have the time or the ability to do anything about it.

Left unattended overwhelm can led to levels of negative self-talk which take us to the point of simply giving up. It can affect our emotional state and even our physical health.

That's why we need to have a strategy to get on top of it.

Here are six things you need to know and work on in order to overcome overwhelm.

1. It's normal.

Remember that overwhelm is perfectly normal

We have lots of competing interests and pressures on a day to day basis so overwhelm will happen.

Knowing it's normal helps because it shows that we are not alone in the situation and that if others experience and overcome it then we can too.

Once you recognize it's normal then the following five steps will help to resolve it.

Here are the next five steps:

2. We have accepted that overwhelm is normal. It's normal in business and in everyday life. One thing we can do is to take a day out.

If you don't think you can cope with a whole or even a half-day out then at least find something which is your "happy place" and schedule some time there.

Perhaps it's a round of golf, a movie or some time with friends or family. I recently took a day out to spend with my grandchildren.

The following day my thinking was far clearer, my productivity increased, I was more creative and overall happier.

Whatever the day point or happy place may be for you, the trick is to schedule it. Lock it into your calendar so you can be sure it happens. There is one layer peeled.

3. Get back in touch with your "Why".

It may be the Why you started your business or "Why" you have the job you have. The "why" may be your big-picture goal, your vision or it may simply be the next "reward' you are working toward.

Whatever it may be, the trick here is to remind yourself of it.

If you are struggling to remember your "why" ask those around you, your family, friends, team members or clients.

Think about the impact that what you do has on others, the transformation that it brings to their lives and to yours.

Understanding your "why" may just be the shot in the arm you need to motivate you to push on and peel another layer off that overwhelm onion.

4. Plan

We all know the saying that a failure to plan is a plan to fail.

Plans, in my mind, shouldn't be complicated, they should be simple and even better if you can put them on to one or two pages.

Having a plan will give you the two important C's, certainty and clarity. With a plan you know exactly where you want to go and precisely how you'll get there.

Taking some dedicated time out to plan will save a lot of hard work over time. You will get certainty and clarity.

5. Break things down.

Any task or project which contributes to overwhelm can and should be broken down to bite-size chunks.

Looking at a large project or problem as a whole only contributes to the overwhelm. breaking it into achievable pieces works to remove the overwhelm.

By seeing the component parts to any project, we may also see where those parts can be completed by someone else, potentially someone who would be better and faster than us.

Is that another layer of the overwhelm onion I hear hitting the floor?

6. Find some tools to help

In Mastermind, we have our One Page Plan and our Sprint Planners. These are simple one-page tools that help implement the other steps in the process.

The one-page plan is simple, it just makes to look at your "why" your big-picture vision, then work out what you want to achieve in the next twelve months which will fit in with that vision.

Next, once you have the twelve-month goals clear, set up some projects which you can achieve in the next 90 days which once completed will step you closer to your twelve-month goals.

Complete that all on one page and you have addressed the major parts of this overwhelm removal process.

Following these six steps will help you peel the necessary layers from your overwhelm and help you to move forward with clarity, energy, creativity and most importantly, confidence.

Happy peeling!

Links and Resources:

Metropole's Business Accelerator Mastermind

Mark Creedon – Business Coach to some of Australia's leading entrepreneurs

Some of our favourite quotes from the show:

"Today's demanding work environment and technology keeps you hooked into work twenty-four seven." – Michael Yardney

"We all know our mental health affects our physical health, doesn't it?" – Michael Yardney

"If you want to get above and beyond everybody else, if you want your business to grow further, if you want to be more successful in your career, you actually are going to have to do more than others." –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 podcast, we're going to talk about property management, and more specifically what a property manager does.

There will be some things that surprise you.

We'll also talk about how to select a property manager, because if you're going to build a business, a property business on the side, you've got to have one that doesn't have too many working parts and that works for you even when you're not there.

And that means finding a property manager who cares as much about your property as you do.

Then, in my mindset moment, I'll share a lesson from my mentor, Jim Rohn, about 4 important emotions that can turn your life around.

What do property managers actually do?

Property managers:

• Collect rent
• Keep vacancies to a minimum
• Check references
• Advise landlords on tenant selection
• Ensure compliance with legislation
• Ensure leases are legally enforceable
• Have and apply market knowledge
• Choose tenants with whom they can have a long-lasting relationship

Questions to ask a potential property manager:

• Pretend to be a tenant and arrange a mystery shop experience. See how they treat tenants.
• • This is important because tenants are just as important as customers as landlords.
• Does the agency have a dedicated property management department?
• Is there a director or owner involved in day-to-day property management?
• How long has the property manager been in the industry?
• What are the specifics of the property manager's experience?
• How long have they been in the industry?
• Is their presentation professional?
• Who is in the office handling inquiries and concerns from tenants/landlords/investors while the property manager is out in the field?

Links and Resources:

Michael Yardney

Metropole Property Strategists

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

Why not speak with the team at Metropole Property Strategists and get their independent property advice -click here

Leanne Jopson – national director Metropole Property Management

For more details and the full show notes go the show's webpage: How to find a property manager who cares as much about your property as you do

Some of our favourite quotes from the show:

"I know that at Metropole what we do is we have systems looking after the property and people looking after the systems." – Michael Yardney

"If you've got a multimillion-dollar business, don't take shortcuts with the people who are part of your team, including your property manager." – Michael Yardney

"The day you allow the emotions to fuel your desire, that's the day your life's going to turn around." –Michael Yardney

PLEASE LEAVE US A REVIEW

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

If you're a property investor, I've got a warning for you.

Some high-rise buildings are going to become the slums of the future.

As a property investor, it's important to recognize that you've got to own the sort of property that's going to outperform the averages, and many properties in the future are going to underperform because they have a shadow hanging over them.

That's the one million apartments build over the last decade or so.

In today's episode, I'm going to explain a little more about what I mean and what you can do about it.

I'm also going to have a chat with Brett Warren, director of Metropole Properties Brisbane about the research you should do to help understand what's happening on the ground in property markets. In fact, it's the research that we do and he's going to explain how we do it and what you should look for.

Then, in my mindset moment, I'm going to tell you a story about a Cherokee Indian. This story has an interesting message that will help you gain some clarity for your future.

Warning – some high-rise apartment buildings will become the slums of the future.

The way we live in Australia has changed.

We're trading backyards for balconies and courtyards and this has resulted in around one in five Australians living in an apartment today - up from one in seven in the 1990's.

The problem is not all apartments are the same.

Some will make great investments increasing substantially in value over the long term, but many of the high-rise towers built in the last fifteen years will continue to underperform with poor, if any, capital growth in the foreseeable future.

This sector of the property market has lost the trust of the buying public and confidence will take quite some time to restore as various stakeholders including state and local governments as well as the construction industry including building surveyors and certifiers scramble to shore up building sector.

You see…there tend to be three major types of building issues faces by apartment owners:

1. Structural defects – These are the ones that grab the headlines but, in reality, major structural issues only relate to a small number of buildings.
2. Fire issues – These often relate to inferior cladding used during construction. Cladding audits are ongoing, but so far 629 affected buildings have been identified in Victoria alone.
3. Water issues – These are very common and occur to some extent in almost every new building – things like leaking balconies, showers and roofs. While these are a nuisance and can be expensive, they can usually be rectified.

Fact is, the buildings with major problems requiring mass evacuation are the outliers, but for those involved their losses will be significant as they will have hefty repair bills and have no real market for the sale of their apartment in buildings that could well become the slums of the future.

But that's not all folks…

The standard of high-rise apartment tower construction is a vivid example of how in today's disposable society, the quality of many things is falling in the pursuit of bigger profit margins.

This in stark contrast to the quality of the 100-year-old buildings that stand proudly next to them in our CBD's. They were craftsman built with durable materials and have stood the test of time and multiple generations. They still stand strong today – a far cry from the buildings being thrown up in the modern era.

But I believe recent round of disclosures about structural problems in the apartment towers built over the last decade or two for the investor market is just the tip of the iceberg.

It's been suggested the high-profile stories that have hit the media are just the tip of the iceberg and many more buildings with structural problems – some big, some small – will come to light over the next few years.

Some developers will have the funds to repair their buildings, but others won't.

And insurance often won't come to the rescue of the unfortunate owners as sometimes it will be difficult to know where to lay the blame:

• Councils who have encouraged higher density development and at times been willing to negotiate building guidelines in order to promote development.
• Developers who have chosen the cheapest builder to increase profit margins
• Builders who been prepared to compromise to win the deal.
• Contractors who may have been willing to cut corners like import cladding from overseas because it was cheaper.
• Certifiers who approved the standard of construction.

And even if when the issues come to light, they are repaired, what rational purchaser is going to want to buy into these buildings?

The bottom line:

Demand for apartments is set to accelerate from a more diverse buyer profile as apartment living emerges as a preferred lifestyle for many, from the younger generation leaving home to the older generation wanting to downsize

The peak of the current building cycle has now been reached and it has now emerged that many of the buildings built during the last construction boom will have a shadow hanging over them for some time.

At the same time reluctance from future purchasers will make it harder for new developments to have sufficient pre sales to get out of the ground at a time when tighter planning restrictions for apartments, particularly in suburban areas, will exacerbate the emerging undersupply of dwelling required by our growing population.

This will create two tiers of units moving forward. Solidly built medium density apartments and townhouses developed by reputable builders and many of the towers that dot our big cities that could well become the slums of the future.

Research statistics for property investors

People often ask us, "what research do undertake at Metropole?" What do your research team and your buyers agents do to understand what's happening in the local market?

There's lots of information you can get on the internet, lots of reports that come out, but I believe that when you have an on-the-ground team that has been purchasing properties and buying and selling on the ground, you can learn from their perspective, and that's what I'm going to talk to Brett Warren about.

The common things that most investors and homebuyers look for:

• Median house prices
• Auction clearance rates
• These are lagging indicators
• Metropole property experts drill down a little deeper and look for more immediate indicators

What Brett Warren's team looks for:

• Asking prices
• Stock on market
• Time on market - If time on market shortens significantly, it means the market is heating up
• Discounting
• Demographics of the market

Brett's team doesn't just look once, they look and analyze information each day.

They also examine the difference between this time in the market and what the market was doing this time in previous years.

Links and Resources:

Michael Yardney

Metropole Property Strategists

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

Brett Warren – Metropole Properties Brisbane

Organise a time to speak with Brett by clicking here

Read the show notes plus more at the show web page A ticking time bomb for high rise apartment owners | Research statistics all property investors must understand

Some of our favourite quotes from the show:

"Which wolf is going to win your battle? Let me answer that right now: the one that you feed." – Michael Yardney

"Median prices are very much a lagging indicator because what's reported is often what's been sold 30, 60, sometimes 90 days earlier." – Michael Yardney

"At the end of the day, the property statistics can help you get a better understanding of the property markets, and the statistics we're currently examining are suggesting that it's a great time to get into the market." – 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

Should you worry about the upcoming recession? If you believe the media, then, of course, you should.

But it's important to get both sides of the story.

Today, in my discussion with Pete Wargent, you'll hear about some of the negatives affecting our economy as well as the many positives that the media tends to forget.

We'll give you a balanced assessment of what's likely to be ahead.

This show is going to be valuable for property investors, future homeowners, and businesspeople as well.

Then, in my mindset moment, I'll explain to you that you've won the lottery. Listen in to find out what I mean.

Some of the topics I discuss with Pete Wargent:

• Reported GDP is really historical information – it tells us what's gone on before
• Credit is the lifeblood of the economy, so if you limit people's ability to borrow, you slow the economy, as happened in the recent credit squeeze
• Nobody knows for sure if we'll get a recession, but if you look at the probabilities and what markets are saying, it's pretty unlikely
• Australia's currency and low debt tends to help rebalance the economy quickly
• Construction is a big hole in the economy that needs to be filled
• International uncertainties may constrain growth, but there are always uncertainties to consider
• Interest rates have been cut and tax rates have also been cut. So far these incentives have not had a big effect on the economy, but they may with time
• Population growth fuels new construction and adds to demand in the economy.
• Immigration also helps as it slows the aging of the population and reduces the dependency ratio
• Business investment is improving
• Recession can often be a confidence issue, enhanced by scaremongering in the media

Why not allow Metropole to help you secure your financial future – here's 3 ways we can help

1. Strategic property advice. - Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
2. Buyer's agency - We'll help you find your next home or an investment-grade property. Click here to learn how we can help you.
3. Wealth Advisory - We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.

Links and Resources:

Michael Yardney

Why not speak with the team at Metropole Property Strategists and get their independent property advice -click here

Get more details about Michael Yardney's Property Renovations and Development workshop

Pete Wargent - Next Level Wealth

Read the full show notes plus more at this episodes page: Should you be worried about the upcoming recession? With Pete Wargent

Some of our favourite quotes from the show:

"Economists have actually got a pretty poor track record of predicting recessions" – Michael Yardney

"Large parts of the retail sector are suffering from the trend of online purchasing and… the lack of consumer spending." – Michael Yardney

"I've read that the probability of even existing comes out to one in something followed by 2 million zeroes." – Michael Yardney

PLEASE LEAVE US A REVIEW

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The content of today's show has been designed by you, because we're going to answer your finance questions.

Today's conversation with Dan Gold will be helpful for both beginning and experienced property investors.

I've also thrown in my own question, and I think you'll enjoy hearing the answer: - Is it really true that you can get a finance approval in as little as two days?

You'll find out today.

Some of the questions we discuss today:

• Will buying higher-yielding properties in regional Australia increase borrowing capacity? And will that allow the buyer to purchase more properties?
• • In the current lending environment, high-yielding residential properties do not have a material impact on borrowing capacity.

• What factors are important to look at other than interest rates when looking for a loan for an investment property?
• • Focus on finding a lender that can actually meet your requirements and objectives and be selective with the person or bank that's going to be taking you through the process.

• Are interest-only loans back?
• • For the right borrower, interest-only loans never really went away.

• How do you release the equity from your property portfolio?
• • Do a review of your property portfolio to get a sense of how much equity you have. The banks will allow you to borrow up to 80% against any one asset, so if you're only leveraged up to 50%, you may be able to release that remaining 30% to fund deposit and purchase costs on your next property.

• Can you get a loan approved in a couple of days?
• • There are lenders in the current marketplace that can turn loan applications around quickly. To get a loan approved quickly, you need to:
  • • Deal with a bank that's capable of doing fast loans
    • Make sure that you have 100% of your required documentation upfront
    • Discuss any areas of complexity up front before starting your application

Links and Resources:

Michael Yardney

Why not speak with the team at Metropole Property Strategists and get their independent property advice -click here

Get more details about Michael Yardney's Property Renovations and Development workshop

Dan Gold – Long Property

Read the full show notes at our web page: All your finance questions answered Podcast

Some of our favourite quotes from the show:

"In my mind, residential real estate's a high growth, relatively lower-yield investment." – Michael Yardney

"While interest rates are interesting, they're probably not the most important factor at all." – Michael Yardney

"People sort of forget that that's their asset that they can borrow against, so yes, see what your loan-to-value ratios are, also see are your current loans appropriate for today's marketplace and can you maybe save a little bit in interest by just asking."— 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

Australia's housing markets have clearly turned the corner.

The housing market recovery in our two biggest cities, Melbourne and Sydney, gained pace with property prices increasing over the last month.

Buyers are back making plans, looking at properties and approaching their lenders for finance.

They are buoyed by falling interest rates and the prospect of another rate cut early next year and a generally positive media.

Sellers are slowly returning to the market encouraged by rising prices.

This now marks the fourth consecutive month of price gains in Melbourne and Sydney, which was where the downturn hit the hardest over the last couple of years.

As a result, auction clearance rates are up, asking prices are up, property values are increasing and some property commentators are even forecasting double digit capital growth next year.

We called the market bottom a few months ago in our regular Property lnsiders video chats, so today we discuss what's going on in the world of property at the moment

Another interesting month overseas

There is continued uncertainty regarding the global economic outlook.

• US Trade Wars – these are continuing, however with the next round of Presidential elections in 2020, Trump is going to want to go into that campaign with strong jobs growth and the US economy in good shape. So it's likely Trump is going to look for a resolution to this issue sooner rather than later.

• The Brexit saga: the uncertainty about this continues.

• Interest rates around the world are easing to try and stimulate economic growth. This was by the Federal Reserve in the USA reducing interest rates.

Australia's Economic Data

• Australia's GDP growth for the June quarter was reported as only 0.5%, bringing the annual rate of growth down to 1.4% from 1.7% in the March quarter - the slowest growth rate that we've seen in the economy for nearly 10 years. But remember this is a lagging indicator and really reflects what happened before and around the time of the Federal election and clearly things have changed considerably since then.
• In a well publicised speech RBA Governor Lowe explained he was looking for further progress towards full employment and to achieve the inflation target over time and explained our economy is gently turning around.
• We're still creating plenty of jobs. 34,700 new jobs created for August. And we have been creating around 26,400 jobs every month since the start of this year. However, we're seeing a record high level participation rate of 66.2% causing our unemployment rate to lift from 5.2% to 5.3% percent.
• Dwelling approvals have fallen for 21 months in a row with the latest figures (being for August) showing approvals are now at their lowest level since January 2013, being down 29% year-on-year and are below the estimated level of underlying requirements. This is particularly evident in the high rise segment of the market as both developers and investors pull-back from the market.

Interest rates fell to historic lows.

The recent evidence of a strong rebound in Sydney and Melbourne property values wasn't enough to stave off a rate cut.

In what was a well telegraphed move, the RBA cut the official interest rate to 0.75% on October 1st citing weaker than expected growth in the domestic economy and global uncertainty.

The RBA made the following pertinent comments in their statement announcing the rate cuts:

"The Board will continue to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time."

The Governor's Statement certainly opens the door to even lower rates although a follow up move in November seems unlikely.

Even though some lenders have already starting lowering their variable rates, it's going to take more than a rate cut or two to restimulate our economy.

In my mind the government now needs to implement fiscal reforms to drive long-run growth because it's likely these rate cuts will have a smaller impact than in the past.

Interest rates are already at historically low levels and banks are clearly not passing on the full rate cut.

At the same time many Australians are stashing their cash and paying down debt rather than spending while businesses seem hesitant to invest due to the uncertain global economic outlook.

Auction clearance rates point to higher prices ahead.

Auction clearance rates in both Melbourne and Sydney kept rising over the last month continuing the post-election bounce in confidence in our property markets.

The prospect of easier access to finance, falling interest rates and a tax cut has boosted confidence, driving strong auction results across Australia.

It is unlikely that clearance rates will rise any further now especially as more stock comes onto the market for sale in the next few months.

The rental markets

Our rental markets are still relatively flat, and vacancy rates have crept up a little over the last month in Sydney and Melbourne.

What's ahead for property prices?

The rebound in housing conditions should help to support an improvement in economic conditions as higher housing prices translate to a wealthier and more confident household sector that will inclined to spend more.

Stronger housing conditions should also support the residential construction sector where approvals dropped through the housing downturn.

Overall property values are likely to rise modestly to the end of 2019 before growing about 3-5 percent in 2020.

It's a great time to buy countercyclically in Sydney and Melbourne and ride the property next wave of the property cycle in Brisbane.

Links and Resources:

Michael Yardney

Metropole Property Strategists

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

Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au

Join us at our annual Property Renovations and Development Workshop in October – click here for more details

For complete show notes and all the charts discussed in the podcast go to the episode webpage here: Australian Housing Market Update October 2019 | PROPERTY INSIDERS VIDEO

Some of our favourite quotes from the show:

"We still seem to be creating a lot of jobs – 34,700 jobs were created in August. We've been creating about 26,500 jobs every month since the start of the year." – Michael Yardney

"The government now needs to implement some reforms to drive long-term growth." – Michael Yardney

"Higher house prices tend to translate into people feeling better, feeling wealthier, feeling more confident, spending a little bit more." – 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