Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

What's more valuable to you - time or money?

Well, you can use your time to create more money. But you can't use money to buy more time.

That makes time the more valuable commodity.

In today's Build a Business Not a Job podcast, I'm going to have a chat with Mark Creedon about time management and investing your time like it's money.

Even if you're not in business or planning to go into business, I've found that we all face the same challenges of trying to squeeze more into the day.

Mark's coaching has helped me and the team at Metropole better manage our day, and the information on this show will be valuable to you as well.

Listen in as we talk about how you can treat your time as if it were money.

Some of the Topics We Discuss in This Episode:

• How often business owners talk about not having enough time
• Where to start with time management
• Planning your day
• • Setting up a morning routine
• Batching your time
• • Why you should avoid multitasking
• Setting time frames and saying no
• • Scheduling phone calls, emails, and other interrupters for specific times of day

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:

"One of the biggest excuses I've found business owners give for not being able to work on their business, not having a business but actually having a job is, "I just don't have enough time to do this."" –Michael Yardney

"Once a week the phone tells me how many hours I'm spending on it, as well as what I'm doing. Very interesting statistics." –Michael Yardney

"So what I've learned from you with batching time is set aside fixed time for the big interrupters. Batch your phone calls, batch your emails." –Michael Yardney

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How will Australia's property markets change over the next decade?

Where will our property markets be in 10 years' time?

What will they look like and what are the major factors that affect our property markets over that time?

Now they are some good questions – aren't they?

Listen as Ahmad Imam and I discuss what we expect to happen to Australian property in the next decade

You'll hear us discuss...

1. The major trends that will affect our property markets over the next decade including:

• Demographic trends

• Population growth – household formation
• How we want to live
• Where we want to live

• Economic trends

• We're transitioning from a manufacturing country and a resource-led economy to an economy based on service industries
• What will this do to where job growth will occur – wages growth will occur – obviously affect housing

1. How we're going to invest in a lower inflationary and wages growth environment
2. How the forecast strong population growth will affect us – it's not all good news – there certainly are some challenges ahead

• Population growth and the wealth of the nation will underpin property values – we need both.
• Over the last year, the annual growth in Australia was estimated to be almost 400,000 people.
• Around 60% of this growth is due to immigration, but now there are moves to reduce the cap on Australia's permanent migrant intake to 160,000 per annum, but the overall pace of net overseas migration is faster than this, partly accounted for by international students.
• What are the implications of these changes and where all these people are moving to?

1. Why population growth alone won't create economic growth, and what is really needed.
2. A big demographic trend that will shape our property markets, but doesn't seem to be mentioned much.

• Our aging population means we have more one and 2 people households, meaning the type of property that will be in continuous strong demand will be different in the future with more people trading backyards for courtyards and balconies. More single older people, more DINK's, more empty nesters, more young singles getting married later.
• Smaller average household size means we need more dwellings for the same number of people

1. Where the best investment opportunities will be over the next decade and why. - You'll have to watch the video to get my recommendations.

Wealth Retreat 2019

We also discuss Wealth Retreat 2019 which be held on the Gold Coast on June 8th to 12th.

Click here to find out more and register your interest

By the way...

• Wealth Retreat is not really a property seminar, even though we do spend a lot of time talking about property.
• Wealth Retreat is about creating lifetime wealth and leaving a legacy.
• It is aimed at already successful property investors, business people and entrepreneurs.
• We have Australia's leading faculty of property, tax, finance, financial planning economic and business growth experts.
• I've found many of the attendees from previous years felt isolated in their wealth creation journey and by joining us they suddenly developed a peer group of like-minded people.
• Find out more at WealthRetreat.com.au image how you will be different after 5 days immersed with a room full of successful movers and shakers.

You can also watch the video of this recording here - My Property Predictions for 2030

Links and Resources:

Michael Yardney

Metropole Property Strategists

Ahmad Imam- Metropole Property Strategists Sydney

Wealth Retreat 2019

Some of our favourite quotes from the show:

"If you came back to Australia after a decade of visiting overseas ten years ago, you wouldn't recognize the shape of our cities." –Michael Yardney

"Fortunately, we're creating more jobs – more importantly, full-time jobs – and our unemployment rate's dropping." –Michael Yardney

"Town planning regulations are going to need to change to allow us to build more appropriate accommodations – more townhouses, more medium-density, low-rise density accommodation." –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.

Labor has proposed $200 Billion worth of new taxes.

That's a staggering amount – almost unfathomable.

The numbers are so large they are almost meaningless unless of course they are explained, so I'll try and break them down.

• Loss of negative gearing benefits

This has received a lot of publicity recently and it has been revealed that Labor has made a number of incorrect basic assumptions in formulating the potential benefits of the proposed taxes.

Plus, they seem to have forgotten how ordinary mum and dad investors are providing housing for renters.

Some other things they seem to have forgotten include:

• Many property investors are ordinary Australians earning about $80,000 per year. These are not "greedy investors."
• The Government spends about the same on Public Housing ($4.7 billion) as they do on Recreation and Culture and the trend is less and less each year. Someone (you and me) has to take up the slack.
• It is said that the loss of negative gearing will benefit the government by $3 billion per year (and this figure now seems to be significantly overstated); but p investors spend $44 billion per year to own and maintain these properties.
• In most businesses the initial years start off with losses and this is the same for property investors. The benefit of negative gearing is what all investors and business owners receive when they spend more than they receive to build up a business which will become profitable and pay tax.
• There are 400,000 public houses in Australia compared to over 3 million properties owned by investors. If 10% of investors leave the market, then the Government will need to step in and spend more than the tax saving from disallowing negative gearing.
• Loss of this tax benefit to investors could add over $5,000 to a property investor's cash flow which would require them to increase rents on average by over $100 per week.
• • Just talking about this policy has reduced house prices due to the uncertainty. So who knows what eventually implementing the actual policy will do. The policy by Labour is specifically designed to help reduce house prices (your home) so that 10% of housing buyers, being first home buyers can afford to get into the market. The Labour Government is punishing 90% of home owners so 10% first home buyers may be better off.

• Electric cars

Labor wants 50% of all cars to be electric within 10 years.

Assuming many cars will not be suitable for electric drive i.e. farm vehicles, long distance driving, Utes and 4-wheel drive cars then over 75% of passenger cars will be taxed if not electric.

The proposed tax on petrol cars will be over $2,000 per year as they emit more than the 105 grams of carbon.

• The loss of the cash back on Franking Credits

Australian who own shares in public companies have their individual tax on dividends pre-paid by the company.

When these share owners receive their dividend (their share of the profits in the companies they partly own), they have the value of the pre-paid taxes (paid by the company) taken into account.

If the shareholder's tax rate is higher than the tax taken by the company (and paid to the government) they will pay a top up tax. If below they get a refund. It is proposed to take this refund away.

This is the same as denying you a tax refund if you overpay your PAYG on wages.

In summary:

Labor proposes to tax an additional:

• $57 billion to retirees
• $31 billion on property investors
• $30 billion on businesses using trusts
• $34 billion on higher superannuation taxes
• $5 billion from halving the capital gains tax discount
• $2 billion by limiting what you can spend on accounting and tax services.
• Plus, many more

What's next?

The Greens and the ACTU would like the introduction of an inheritance tax.

What's left? How long before your family home will be taxed?

Links and Resources:

Michael Yardney

Metropole Property Strategists

Ken Raiss – Metropole Wealth Advisory

Why not learn more about Ken Raiss' services at Metropole Wealth Advisory by clicking here

Some of our favourite quotes from the show:

"If they follow the guidelines that Labor is proposing and they only buy new or off-the-plan properties, they're going to suffer because we know the track record of new and off-the-plan properties has been horrific." –Michael Yardney

"Here the government hasn't really been providing much public housing, and they have been depending on people like you and me to do that." –Michael Yardney

"People have got to make their own decisions about what they want for their life and for their country, and it's not just how much money you've got in your pocket, it's what you're doing for the community and the country as well." –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.

What's the biggest differences between the rich and the poor?

And I don't mean the fact that the rich have more money.

There is a lot more to it than that.

That's what Tom Corley and I discuss in this week's Podcast.

I've written so much about the big differences between the Rich and the Poor over the years.

In fact, I've written the book Rich Habits Poor Habits together with Tom Corley which explains our findings in detail.

I've recognised if you want to make a change in your financial life, it must be done in the following 3 steps:

1. Awareness —it starts within you – recognising your disempowering beliefs and your " Poor Habits" – your thoughts and actions.
2. Removing — your disempowering beliefs and your "Poor Habits"
3. Reprogramming — working on your beliefs and habits so you can create a new way of being.

The good news is anyone living in modern developed western countries can become rich today.

Listen as I ask Tom the following questions:

• How many in your study were self-made millionaires?
• You found being rich eliminates 67% of Life's problems - how's that work?
• How much of a role does luck play?

We also discuss the following habits of successful people:

1. All success requires passion
2. All success requires unrelenting persistence
3. All success requires taking risks
4. All success requires action
5. All success requires hard work
6. All success requires a team of apostles who believe in you and your dream
7. All success requires continuous daily self-education
8. All success requires a leap of faith
9. All success requires patience
10. All success requires good daily habits
11. All success requires an optimistic, positive mental outlook
12. All success requires the development of processes that work
13. All success requires adding value to the lives of others
14. All success requires creating a herd of followers
15. All success requires stepping outside your comfort zone
16. All success requires laser-like focus
17. All success requires developing unique skills and the acquisition of knowledge specific to your industry
18. All success requires creating the opportunity for luck to occur
19. All success requires the ability to pivot around obstacles, pitfalls, mistakes and failures
20. All success requires the ability to survive until you thrive

So now it's your choice – who would you rather be like?

If you want to be rich do what rich people do.

If you don't then do what poor people do – it's that simple.

Rich Habits Poor Habits

Wealth Retreat

Are you concerned that values have dropped since you bought your last property?

Wondering how to find investment grade suburbs?

That's what we discuss in today's show.

Plus I have a very special Mindset Moment for you.

If you bought property at the top of the property market and you're concerned about falling property values, you'll want to hear my chat with Ahmed Imam. We'll be talking about what you can do and whether you need to be worried about your property values falling.

Even if you didn't buy at the top of the property market, our conversation will be of interest to property investors and homeowners who have concerns about their property market values.

I'll also talk to Brett Warren about how to find an investment grade suburb. Some suburbs just seem to outperform the others. But are they the ones that show up on those lists of top performing suburbs? We'll be discussing just how valuable those lists really are.

What Should You Do If You Bought at the Top of the Market? Ahmad Imam

• No one can pick the exact top or bottom
• Owners who are now realising that they bought at the top shouldn't panic
• Buyers need to remember that property is a long-term journey
• There's no need to check the performance of the property market frequently. Unless you're getting ready to sell, once a year is enough
• Sydney and Melbourne are the powerhouses of economic growth in Australia. It won't take long for the property markets to rebound in those places

Are you looking for an investment grade suburb? Brett Warren

You know…one where properties are likely to outperform and I'm not talking about hot spots, but suburbs that will outperform in the long term.

Well, they are there if you know how and where to look.

Recent property data has shown there are some very mixed results for Brisbane houses over the last 12 months.

Depend on where you find your data, the average house price in Brisbane has grown anywhere from 0.1% to around 1%.

But there are a number of suburbs that have achieved significantly higher growth than the average.

In fact, there are a number of suburbs achieving growth in the double digits.

I check to see that:

1. The local economy is providing new jobs.

A thriving local economy encourages people to move there and ensures locals have the job certainty and the money to buy or rent properties.

1. Local population is growing

Apart from more people, it's important to have the right demographic moving to the area – people in family formation stage of their lives and people of working age rather than an aging population.

1. Local infrastructure spending

When the local council plans to improve roads, public transport options and local amenity this create more local jobs, which boosts the economy and leads to more people moving to the location.

The Usual Suspects

It's interesting, but you will be able to identify these suburbs as they make the same list every second or third year.

They always seem to be powering ahead.

They make the list for two reasons – supply and demand.

When I say supply, it means there is less availability of land and therefore properties are in short supply.

And demand comes from a number of factors, including:

• People want to live in these suburbs – They are aspirational suburbs (as opposed to many of the cheaper suburbs where people chose to live because that's all they can afford.
• They are close to employment hubs where more high paying jobs are being created
• These suburbs are gentrifying – people with higher incomes are moving in
• People living in these suburbs have higher wages growth than the average for the state
• There are local lifestyle precincts – another reason for attracting a gentrifying demographic
• There is easy access to public transport
• There are strong school catchments – a magnet for families

Demand does not wane for these types of locations and they are not building any more of them.

What about all those new Suburbs?

Sometimes new suburbs make the high growth list once, but they rarely make the list again.

They start out as acreages or even small farms that are acquired, subdivided and developed into smaller parcels of land – smallish sites for new homes.

Growth is these locations generally tends to be more physical growth, with towns, shops and schools, etc. rising from the ground in a short timeframe.

One day a large acreage property, 6 months later there are 100 new house and land packages.

Because there is an abundance of land still to be developed there is no shortage of land and an abundance of supply, sometimes lasting a decade or more.

These areas are generally a lot further out from the CBD and usually have inferior infrastructure and public transport and rarely have any of the investment fundamentals, leading to a lack of capital growth.

Sure, these suburbs are more affordable for young families, but the prevailing demographic in these locations tens to have lower wages growth than those living closer to the CBD, another reason these locations suffer from poor capital growth.

A Clear Winner

For me, it is the usual suspects that I always look to invest my money.

It is the known, proven and trusted locations that will continue to be in high demand and continue to outperform the averages.

They will be able to grow your asset base faster and will have wealth producing levels of income one day.

Newer suburbs will no doubt appear to outperform from time to time, but you need to ensure that investment fundamentals are strong and avoid areas with more and more housing estates still in the pipeline.

These locations may assist with a once of equity boost, but as newer suburbs come up, prices and rents will continue to decline, and that equity will evaporate.

There are clear winners once you can interpret the data and understand the fundamentals behind it.

And remember that while location does around 80% of your property's long-term performance, of course, you need to own the right property in that location.

Links and Resources:

Michael Yardney

Metropole Property Strategists

Ahmad Imam – Director Metropole Properties Sydney

Brett Warren – Director Metropole Properties Brisbane

Some of our favourite quotes from the show:

"What you need is the right finances to get you through the property cycle, which is what should have been set up long before you bought your property if you did it right." –Michael Yardney

"What a neat philosophy: to never quit looking for another way to get where you're supposed to go." –Michael Yardney

"So, infrastructure spending is good because it actually creates local jobs, it uses local materials, but the other thing is it remains there in the long term as a legacy, so it boosts the economy and it helps people." –Michael Yardney

Do you know that if Labor comes into power, they're going to make us one of the highest-taxed countries in the world, and there are at least 6 taxes that could affect you.

Ken Raiss and I are going to discuss them on today's show.

But first, I'm going to explain why there are so many property pessimists around predicting a property market crash.

You've seen the headlines predicting markets crashing and home values plummeting. Now listen in to find out what's driving the negative news.

Property Pessimists

The property market is going to crash!

That's the type of headline the media has been using to draw you in, isn't it?

If they write something like "The long term property market fundamentals are sound," it's unlikely you would have bothered to click the link.

So, have you wondered why are there so many property pessimists when long term optimism is the most realistic stance?

The media loves to tell us that the property market will crash and gives plenty of air time to commentators with this view.

Now there's nothing new about this.

In fact, part of this is natural — we've evolved to treat threats as more urgent than opportunities.

Warren Buffett wisely said: "In order to succeed, you must first survive."

But all the pessimism about our property markets and the economy takes things to a different level.

I've found that if you say there's going to be a property downturn and you'll get retweeted.

If you say we'll have a big downturn, the newspapers will quote you.

But if you say we're nearing the next global financial crisis and that property values will fall 40 percent and you'll get on television.

However, if you mention that good times are ahead, that certain property submarkets will finish the year higher than they started, or that our property markets are not going to crash, a common reaction from commentators and spectators alike is that you are either a salesman or you don't understand the true risks.

Here are 3 thoughts about what's going on here.

1. Money is universal

So, if something bad happens it tends to affect everyone, albeit in different ways.

That isn't true of, say, the weather. A hurricane barreling down on far north Queensland poses no direct risk to 95% of Australians.

But a recession barreling down on the economy could impact every single person – including you, so you pay attention.

And of course, this also applies to the property market where around seventy percent of Australian households own or are paying off their home.

1. Pessimism requires action

Bad new means you may have to sell, or run away, or hide!

On the other hand, optimism is mostly a call to stay the course. It's not nearly as urgent.

1. There's a lot of money to be made in the property advice industry

Currently, there is no regulation of the property investment advice industry and while there are some very professional people and organisation around to help investors, because of the potentially large amounts of money involved the property advice industry has attracted an army of truth-benders promising the moon.

A big enough commission can convince even honest, law-abiding salespeople that the dud properties (we're looking at you off the plan apartments and house and land packages) they are offering are in their customers' best interests.

So they promote optimism with stories like properties never drop in value, or (all) properties double in value every ten years, or the tax depreciation and lack of maintenance of your new apartment make it a great investment.

And over the years too many people have been bamboozled by these property spruikers version of optimism.

By the way…most promotions of optimism are realistic

But, of course, not all are.

Just so you understand what optimism is — real optimists don't believe that everything will be great.

That's complacency.

Optimism is a belief that the odds of a good outcome are in your favour over time, even when there will be setbacks along the way.

I've read that the simple idea that most people wake up in the morning trying to make things a little better and more productive than wake up looking to cause trouble is the foundation of optimism.

Now that's not too complicated.

But it's not guaranteed, either. It's just the most reasonable bet for most people.

So, don't become a property pessimist, despite what the media try to sell you.

Instead, become a property realist.

6 New taxes:

No one likes paying more tax.

With the odds shortening for a Labor government it's important for real estate investors to understand how a Labor win could affect their property investments. Land Tax

Did you know you'll have to pay up to 6 extra taxes if Labor comes to power?

If Bill Shorten becomes our next Prime Minister, millions of Australians will have to pay higher taxes. And he's not just after "greedy property investors."

If he has his way Australians will be amongst the highest taxed people in the world.

Here are some of the tax hikes the Labor Party is proposing

1. The top tax rate would rise to 49%
2. A higher tax on capital gains
3. Limiting Negative Gearing
4. Retiree tax
5. Taxing distributions from discretionary trusts
6. Superannuation changes

You can also watch Ken Raiss and Michael discuss this topic in the following video : Here's how a Labor win could affect your property investments

Links and Resources:

Michael Yardney

Metropole Property Strategists

Ken Raiss – Metropole Wealth Advisory

Some of our favourite quotes from the show:

"Currently, there is no regulation of the property investment advice industry, and that's a bad thing." –Michael Yardney

"I think what we're saying is be aware of what could happen and see a good tax strategist who is going to be able to protect you." – Michael Yardney

"If you can grow your wealth more effectively by legally paying less tax and using the system correctly, at the same time protecting your assets, it's a great way of doing things." – Michael Yardney

Want to know what will make me a better property investor in this difficult market?

I expect that the property market is going to pick up.

And I expect that the Melbourne and Sydney property markets will go gangbusters.

I have no idea when this will happen.

Now just to make things clear…those aren't contradictory statements.

The first is an expectation, the other is the rejection of a forecast.

And if you want to be a successful property investor, you're going to have to understand this important difference.

It's one thing to look at history and see that the property market cycles with some frequency and then form a baseline of what to expect in the future with this knowledge.

However, it's quite another thing to predict the precise timing of the turning points in the property cycle.

And it's another thing entirely to devise a strategy that reacts to those predictions.

Property analysis isn't black and white, yet some people believe they can predict markets and they tell you about (or sell you into) the next property "hot spot."

There's an important grey area, which is expecting certain events to occur without having an opinion on exactly when, where, why, or how.

I've been investing for over 40 years now and in that time there have been 8 significant property cycles.

I can use this as a very rough rule of thumb for the future, based on the idea that we've got even more positive fundamentals to drive our property markets than past generations had.

While there are many sound fundamentals underpinning the long-term prosperity of our property markets, two of the big ones that give me comfort are our significant population growth and the wealth of our nation.

This reassures me that my long term plans are sound and based on what has always worked – rather than trying to pick what is right for the current market.

Now I have an expectation:

If I plan on investing for the next 30 years, I should count on things getting ugly at least six times.

Maybe it'll be a little more, maybe less.

But I have an expectation, a rough idea of how the game works.

Yet it's not a forecast.

A forecast is, "The property market will turn in the second half of 2019" or "Australia will have a recession in the first half of 2021."

That's precision, with a disregard for both the history of people making such forecasts and the events that cause these turning points which, a lot of the time, is something that can't be foreseen.

The important difference between an expectation and a forecast is the impact it has on my behaviour.

If I expect property booms and property downturns, I won't be surprised when they come.

I know they're a normal part of the game.

But since I'm not sure when they will come, I won't attempt to do much about it.

Attempting to do something about it – trading, timing, buying and selling – is the root of most investors' mistakes.

A forecast suggests that you know when something will happen, which is permission to act on it.

There's little reason for a forecast other than acting on it.

But unfortunately this creates two problems:

1. The false hope of knowing exactly when the property market will turn. Even the experts keep getting their forecasts wrong.
2. The high-probability of regret from trading around these forecasts. Just see the results all the hot spotters have achieved, or the lost opportunity for those who tried to time the market.

In other words…

Expectations rather than forecasts make me a better property investor.

What does the Federal Election mean for our beleaguered housing markets?

So finally we have the federal election campaign underway – what does this mean for our beleaguered housing markets?

Home values across Australia's largest capital cities have been falling since they peaked in late 2017.

In fact, it looks like this will be the biggest and longest national decline in home values for almost 40 years (or since records began in 1980).

Consumers have lost confidence, first buyers went on strike now sellers are holding back unless they really have to sell

And while the property markets have started 2019 with a positive note, with more interest from buyers, auction clearance rates rising, the banks chasing more business another hurdle has been put in our way.

A federal election and elections create uncertainty and when there's uncertainty buyers put their hands in their pockets.

Dr. Andrew Wilson and I discuss the likely implications of the election campaign.

• Election date is Saturday 18 May
• This will clearly disrupt a recovering market with agents avoiding auction sales campaigns in the next month
• At the same time the late Easter and holiday period will see a closing down of the property market at least till the end of April
• This means the current record decline in seller activity will be amplified over next month
• Buyers will also be wary given until they know who will win the election
• The election campaign will end close to the winter market shutdown that commences after Queens Birthday long weekend (June 10)
• The election will act to distract the property market
• Buyers and sellers wary of election outcome – so will be sidelined
• The election result is likely to be closer than previously thought based on latest polls. And the market hates uncertainty
• The significant Labor Tax policy will be the focus of scare campaign exacerbating all the above

Watch the video of our discussion here: What does the Federal Election mean for our beleaguered housing markets? | Property Insiders Video

If you're a business owner, entrepreneur, or professional, then this show, the first of a new series, is for you.

Do you work 50 to 70 hours a week or more?

Not including the time you spend on phone calls and emails at nights and on weekends?

Can you go away from your business and return to find that it's made money while you were gone, or does it stop when you do?

Are you sure that you have a business? Or has it turned into just another job?

In this episode, we'll talk about the concept of a business that works even without you, and how you can begin to get to that point.

We'll also talk about the three levels of business and how you can gain control over your revenue and freedom within your business.

Some of the Topics We Discuss in This Episode:

• What can happen when you take a vacation from your own business
• Whether you really have control when you become self-employed
• The three levels of business
• • Level 1: When you first launch your business. You have no freedom and no control. You're working long hours because you have to get things done yourself. The business relies 100% on you.
  • Level 2: You have more control, but still no freedom. The business is working only as long as you do. There's no additional revenue coming in when you're not there.
  • Level 3: You have total control and total freedom. You're the owner of a business that runs even when you're not there.
• Three steps people can take to free themselves from the responsibility of everything in your business
• • 1. Know your role in your business
  • 2. Determine your pit crew
  • 3. Delegate effectively

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:

"People leave their jobs to become entrepreneurs, businesspeople, and they don't really recognize that they're trading one boss for lots of bosses. They're called customers, clients, patients sometimes."

"I've found most people fall into the self-employment trap." –Michael Yardney

"I actually have gotten to the point of having a business, not a job. But that doesn't mean I've retired. Because I've got nothing better to do, I still have fun doing it." –Michael Yardney

PLEASE LEAVE US A REVIEW

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

Are you considering buying a new home or an investment property?

If so you're probably wondering should you buy now or should you wait?

What if prices fall further this year?

A better question would be - how important is it to get your timing right and what are the most important factors involved in the long-term performance of your investment property?

With my guest today, Stuart Wemyss we're going to uncover what really makes the big difference in a property's long-term performance.

Some of the ideas we discuss in this episode:

• Why Stuart decided to study the factors that affected property investment performance
• Which variables Stuart looked at and which variables were most important
• What would happen to your property's performance if negative gearing or capital gains tax change
• The importance of choosing the right property
• How Stuart's research fits in with some golden rules in his book Investopoly

• Play the long game

• Grow your asset base first and then tilt toward income

• Set your asset allocation to reduce risk and maximise returns

• Only invest in 'investment-grade' property

Links and Resources:

Michael Yardney

Metropole Property Strategists

Wealth Retreat

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

Stuart Wemyss' blog discussed in this show: How important is it to buy property at the bottom of the market?

Stuart Wemyss' special offer: Save 30% off the price of his book Investopoly – Go to https://www.prosolution.com.au/books/ and use the code "Yardney" to get a 30% discount.

Stuart Wemyss- Prosolutions Private Clients

Some of our favourite quotes from the show:

"We're all wonderfully different. We're all unique and we really shouldn't be measured with the same metrics, should we?" –Michael Yardney

"For things to come out differently, you have to do things differently." –Michael Yardney

"If you can't buy an investment-grade property, the usually the right thing to do is nothing. Just wait until you've got enough money."

PLEASE LEAVE US A REVIEW

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Over the years I've spent a lot of time studying rich people, and over the last decade I've personally mentored some very successful people.

Along the way, I've become much more successful as well.

I've written about success in my books and my blogs, and we discuss these topics in this monthly Rich Habits Poor Habits podcast.

This is the second in a series focusing on the Success Habits of the rich.

In today's show, we'll continue to look at some of the main success habits of the rich.

Success Habits of the Rich

• The poor believe money will make them happier, while the Rich know that money has little to do with happiness, but it does make your life easier and more enjoyable.
• The Rich don't blame (what's the point?). They take responsibility for their actions and outcomes (or lack thereof). They know there is no such thing as a rich victim.
• The poor believe it's wrong for a small group of people (the 1%) to possess most of the money. The Rich welcomes the masses (the 99%) to join them.
• Successful people are not necessarily more talented than the majority, yet they always find a way to maximise their potential. They get more out of themselves. They use what they have more effectively.
• The poor believe they must choose between a great family life and being poor, or love and being poor. The Rich know they can have it all.
• Successful people are solution focused, rather than looking for problems or obstacles.
• Successful people are fearful like everyone else, but they are not controlled or limited by fear. They use it to empower themselves.
• Successful people get up early. They know there's no shortcut, so they work hard until they've accumulated a big enough asset base (created their own cash machine) so they don't have to work hard anymore.

Now before you get too offended…

I'm not making a judgment when I say rich people or poor people – they are terms I use to help clarify the different ways of thinking that 1% of Australian's exhibit from the majority of the population.

It's also worth realising…

We all have some of these successful habits and we all exhibit some dis-empowering habits.

The big differentiator in the see-saw of life is: do you have more of these success habits or more of the dis-empowering "poor" habits.

Links and Resources:

Michael Yardney

Metropole

Wealth Retreat

Rich Habits Poor Habits

Michael Yardney's Mentorship Program

Some of our favourite quotes from the show:

"I think the point in some ways is that as people get a bit more money, it doesn't always make them happier, so you've got to make your life happier." –Michael Yardney

"When you look at the 1%, most of the people listening to this podcast are already the 1% when you take into account the general wealth in the world." –Michael Yardney

"The other really important point is this delayed gratification. That's clearly a trait of all successful people." –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.