Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

To be successful in the current more challenging property markets, you not only need to know what to do, but just as importantly you need to know what not to do.

As I see it there will be plenty of challenges and risks in the real estate markets this year and the value of certain properties will be a little lower by the end of the year.

But we're experiencing a necessary market adjustment and without it we'd be in for the kind of crash we really didn't want.

So in today's show, we're going to talk about what not to do in property in 2019.

I also have a bit of a controversial mindset moment to share with you.

And I'll chat with Ahmed Imam about the questions you should ask an agent before you make an offer so you understand how to take advantage of this buyer's market.

Here's What Not to Do In Property in 2019

• Don't wait too long to get started
• Don't let fear stop you
• Don't wait until you know everything. You'll learn more as you move forward, and you'll learn from your mistakes and challenges.
• Don't focus on linear income, focus on recurring passive income
• Don't be impatient – wealth is the transfer of money from the impatient to the patient

Making an offer on a property – what price should you offer?

Here are 5 questions to ask the agent before you make your offer:

1. How did the vendor come to the asking price for their home?

Was it from the agent's suggestion or because that's how much they need to buy their next dream home?

Some sellers are unrealistic and unlikely to come down from their asking price if they have to get a certain amount for a particular reason.

1. Have there been any other offers made?

This lets you know if you have any competition and how serious the vendor is about selling their home for a reasonable price.

1. How long has the home been on the market?

If it's just been put up for sale, the seller may not be anxious to accept the first offer.

If the home has been on the market for several months, it's more likely the seller would be ready to accept your offer.

1. Why is the vendor selling?

Are they going through a divorce?

Do they have to move interstate urgently?

Have they already bought another home that would put them under pressure to sell their current home?

This will let you know how motivated the seller is.

1. Has the asking price been reduced during the time the property has been on the market?

This will tell you whether the seller is really keen to offload their home and also let you know that you might have a motivated seller on your hands and perhaps greater bargaining power.

Links and Resources:

Michael Yardney

Metropole Property Strategists

Ahmad Imam – Director Metropole Sydney

National Property and Economic Market Update 1 day Trainings use the coupon code: PODCAST

Some of our favourite quotes from the show: "I think it's worth remembering that owner occupiers create property markets. If you think about it, 70% of properties are owned by homeowners. On the other hand, investors create the booms." –Michael Yardney

"The truth may hurt, but the world doesn't owe you anything." – Michael Yardney

"Confidence and trust are earned by you, not owed to you." – 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 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.
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:

• Appeal to owner occupiers
• Be priced below intrinsic value
• Have a high land to asset ratio
• Be located in an area that continually outperforms the averages
• Have a twist that adds value
• Come with the potential to manufacture capital growth

1. 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.
2. 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 meager paycheck.

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 criticize.

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 ProgramNational Property and Economic Market Update 1 day Trainings 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.

How do I invest?

What approaches do I use and which strategies do I use?

There is no "secret" to successful property investing, but there is a strategy I use to boost my chances of success.

It is to firstly build my asset base through capital growth and then, once I'd built a substantial asset base, to move to the "cash flow" stage of investing.

When my properties increase in value this gives me equity for my next deposit and the greater rental growth helped pay the mortgage.

The next stage is to slowly lower the loan-to-value ratio (LVR) of my property portfolio and then to start living off my "cash machine" of properties.

You see…while cash flow management is important to keep you in the investment game, it's really only capital growth that'll get you out of the rat race.

A big mistake I see many investors make is chasing cash flow positive properties early in their journey and never achieving a sufficiently large asset base.

My Top Down Approach

Over the years I've honed my property investment strategy to find that 5% of properties that I like to call "investment grade" properties, – ones that are likely to grow at wealth producing rates of return.

I use what I call a "top-down approach" to my investment selection.

• The Right Stage of the Economic Cycle

• It starts with buying at the right stage of the economic and property cycle.

• I look at the big picture – how's the economy performing and where are we in the property cycle?

• The Right State

• Then I look for the right state in which to invest – one that's in the right stage of its own property cycle.

• While I'm not trying to time the cycle, I don't want to buy right at the peak when I'll have to wait longer for capital growth.

• I only invest in our larger capital cities, where there are multiple pillars to the economy – because this is where economic growth and wages growth will occur.

• The Right Suburb

• Then within that state, I look for the right suburb – one with a long history of strong capital growth outperforming the averages.

• I've found some suburbs have 50 to 100 per cent more capital growth than others over a 10-year period.

• It's all about demographics, as these suburbs tend to be areas where more owner-occupiers want to live because of lifestyle choices and where the locals will be prepared to, and can afford to, pay a premium to live because they have higher disposable incomes.

• In general, they're the more affluent inner- and middle-ring suburbs of our big capital cities, so I check the census statistics to find suburbs where wages growth is above average.

• Clearly my approach is very different to the speculative approach some investors adopt looking for the next "hot spot".

• The Right Location

• Once my research has shown me the suburb to explore, I look for the right location within it.

• Some livable streets will always outperform others and in those streets, some properties will always be more desirable than others and outperform as investments by increasing in value.

• Think about the suburb where you live – there would be areas you'd happily live in and areas you would avoid, like on main roads or too close to shops, schools or commercial areas.

• The Right Property

• I search for the right property using my '6-Stranded Strategic Approach' and finally I look for…

• The Right Price

• I'm not looking for a 'cheap' property (there will always be cheap properties around in secondary locations). house price tag market property cost save home growth data statistics trend

• I'm looking for the right property at a good price.

• I choose my properties in that order – a top-down approach – which leads many people to ask why price is at the bottom of the list.

• You make your money when you buy because you buy the right property – one that will be in continuous strong demand by both owner-occupiers (who push up property values) and tenants (who help you pay off your mortgage).

• To ensure I buy an investment property that outperforms the market I use my…

6-Stranded Strategic Approach

I buy a property that

• Would appeal to owner occupiers – This is because owner occupiers will buy similar properties pushing up local real estate values.
• Is below its intrinsic value – that's why I avoid new and off the plan properties, which come at a premium price.
• Has a high land to asset ratio – that doesn't necessarily mean a large block of land, but one where the land component makes up a significant part of the asset value.
• Is in an area that has a long history of strong capital growth and that will continue to outperform the averages because of the demographics in the area – This will be an area where more owner occupiers will want to live because of lifestyle choices and one where the locals will be prepared to, and can afford to, pay a premium price to live because they have higher disposable incomes.
• Is a property with a twist – something unique, or special, different or scarce about the property, and finally…

• Is where I can manufacture capital growth through refurbishment, renovations or redevelopment rather than waiting for the market to deliver me capital growth.

Each strand represents a way of making money from property and combining all five is a powerful way of putting the odds in my favour. If one strand lets me down, I have three or four others supporting my property's performance.

IT DOESN'T END THERE…

While most investors just buy a property and hold it for the long term, strategic investors regularly review their investment portfolios.

It makes no sense to invest in a property and then not review its performance every year or so.

I like to look at my property portfolio's performance at least once a year.

• Are my properties performing to my expectations?
• Are they outperforming the market?
• If that property were for sale today would I buy it again?
• Does this property still fit in with my overall plan?

This is also the time to assess how our shifting markets will affect your property portfolio.

What would happen to your position if interest rates were to rise 1% or 2%? Because in due course they will.

It's also the time to assess your Loan to Value ratio and your cash flow to see if you can afford to buy another property or two.

Over time you grow, your skills improve and your circumstances change, so treat your property investments like a business and evaluate your assets dispassionately.

So as I said earlier – there is no secret to property investment success, just a strategy.

While most investors read a book or two, do a little research and then buy one of the first properties they come across, strategic investors are smarter than that.

They follow a system that is rooted in the real world and has stood the test of time in changing markets.

So now you know the "secret", what will you do with it?

Links and Resources:

As mentioned in the show:

Special 2 for the price of 1 Book Bonus: How to Grow a Multi Million Dollar Property Portfolio - in your spare time PLUS What Every Property Investor Needs To Know About Finance, Tax And The Law.

Michael Yardney

Metropole Property Strategists

Some of our favourite quotes from the show:

"I look for aspirational suburbs. Suburbs where people aspire to live there." –Michael Yardney

"I've found that following my six-stranded strategic approach, you minimize your risk, and you maximize your upside." –Michael Yardney

"Financial freedom comes at a cost. It comes at a cost of sacrifice, giving up things now for the future, and it comes at the cost of delayed gratification." –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.

Most of us want to become rich. But do we really know what that means?

In today's show, I'm going to debunk some of the biggest myths about rich people.

The myths that have developed around wealth and rich people are not only interesting but within these myths and the realities behind them, we may find clues as to how we can become wealthy ourselves.

It's important to challenge these misconceptions because how you think about money and rich people can determine how successful and wealthy you become.

Some of the myths about money and the rich we discuss:

• Rich people inherited their money – Studies show that a large percentage of the wealthy came from poverty or the middle class and made their own money.
• Rich people don't have to work hard – Rich people don't relax more than poor people. Tom Corley's study showed that rich people worked 11 hours more per week than poor people.
• Rich people pay less tax than anybody else – While super wealthy people can invest their money in tax-advantaged investments, but they only represent about one half of one percent of the wealthy. For the most part, the wealthy pay a large amount of tax on their earnings as they earn it.
• The rich are rich because they got lucky – Wealthy people experience opportunity luck. In other words, they create their own luck.
• The rich are better educated – In Tom Corley's study, more than 30% of the wealthy did not have a college degree. They relied on self-education.
• Rich people are not charitable, and they look down on the poor – Wealthy people devote a large amount of free time and money to non-profits or charities in their community. They see it as an obligation to lift others up.

Links and Resources:

Michael Yardney

Metropole

Rich Habits Poor Habits

Michael Yardney's Mentorship Program

Some of our favourite quotes from the show:

"If you believe negative things about money or about rich people, that they're bad, you may be creating an undertow of self-sabotage that keeps you from being successful." –Michael Yardney

"If you're not wealthy or successful in your own mind – you can be successful as a parent you can be successful as a person, but maybe not as much financially successful – it actually is hard to admire wealthy people because you think, "I should be there as well."" –Michael Yardney

"You can't become successful in any area of life – including money if we're talking about rich – without hard work, without failure along the way, without getting up one more time and looking adversity in the eye and beating 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.

All investing is associated with some level of risk.

But if you're taking on too much risk, you may be speculating, when you think you're investing.

In today's episode, I'm going to talk about the difference between investing and speculating as well as a number of myths about risk that most investors don't understand.

Then I'll have a chat with Bessie Hassan, of Finder.com.au about the risk of getting scammed.

You may be surprised to learn that Australians lose more than a million dollars a week in scams. We'll talk about who gets scammed, what to watch out for, and how to protect yourself.

What most investors don't understand about risk

What's the difference between investing and speculating?

Investing is purchasing an asset to earn a return. You make the decision based on evidence, based on fundamentals, based on long-term horizons so that timing isn't an important part of it, and you aim to profit from it.

Speculation is riskier. It's based on the hope of a profit. It's based on hearsay or the next hotspot or chasing the next big thing. It's usually based on short-term time frames, so timing the market is important. And you're hoping to make money out of a rising market, and therefore it's less reliable than investing.

So why do some investors think they're investing when they're really speculating?

They're looking for the next growth area or the next hotspot. They're looking for something that will work now.

On the other hand, strategic investors don't look for investments that will work "now", they look for investments or locations that have always worked - they invest in properties and locations that have worked in the long term. That's the big difference between investing and speculating.

The myth of risk

What most of us have been taught about risk is wrong, and it's probably holding you back from achieving real wealth. If you are like most investors somewhere along the line you've probably heard that there is associated with different investment vehicles,

Most believe that any investment can be placed somewhere along a continuum of risk with low risk investments at one end and highly speculative ventures at the other. They believe that generally, the higher the risk the greater the reward.

However, this theory misses an important component that helps determine whether or not a specific investment is risky. That component is you. The investor.

Each investor has their own personal risk spectrum.

How can you tell if an investment is risky?

This question can't be answered without knowing more about you.

Have you ever invested in property?

Have you completed a development?

If you have zero knowledge about residential developments, or you've never owned an investment property, no matter how good the deal seems a development is a risky proposition.

Some ways to determine risk:

• Know your area of expertise -- If you're investing in something that's your specialty, you start with a built-in advantage.
• Control – the more control you have, the lower your risk
• Transparency – the more you know, the lower the risk
• Liquidity -- Liquidity means the ease with which you can recover your money by selling the investment and converting it (or part of it) to cash. The greater the degree of liquidity, the lower your risk.
• Returns -- Investors gain returns from their investment property via cash flow, capital growth, forced appreciation and tax benefits. The more secure the returns, the less risky the investment will be
• Is your equity safe? -- Is your financial outlay secure if the investment fails?
• Are you personally liable? -- When you make an investment, do you have to provide a personal guarantee? This gives others (usually the banks) the right to pursue you if things go wrong. If your liability extends beyond the asset itself, your personal assets could be at risk.
• Market risk -- Some risks are inherent to certain markets. Consider what impact general economic changes to that marketplace could have on your investment.
• Risk spectrum -- This is the risk specific to the particular investment. Is it the right property, in the right suburb, at the right price and at the right time in the cycle?

When considering an investment, don't look at the investment alone – look at your own risk spectrum too.

You can change your risk spectrum by developing expertise.

Australians are losing about $1 million a week to investment scams

• According to Scamwatch by the ACCC men (63.5% of scam reports) are twice as likely as women (33.8% of scam reports) to be targeted by investment scams.
• If the current trend continues, combined losses reported to Scamwatch and ACORN in 2018 could be in excess of $100 million."
• The vast majority of investment scams are still centred on traditional investment markets like stocks, real estate or commodities.
• The clearest warning sign you're dealing an investment scammer is how they contact you and the promises they make.

Links and Resources:

Michael Yardney

Metropole Property Strategists

Rich Habits Poor Habits

Michael Yardney's Mentorship Program

Michael Yardney's Property Renovations and Development Workshop

Bessie Hassan – Money Expert

ScamWatch

Some of our favourite quotes from the show:

"The fundamentals of sound residential real estate investing don't change because short-term factors change." – Michael Yardney

"Regardless of how you may define success, your words, those you say to yourself and those you say out loud, are going to help manifest your visions, your goals, whatever you're saying to yourself, into reality." – Michael Yardney

"Successful people are successful because when the odds are against them, they try even harder, rather than complaining and giving up." – 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.

The first few weeks of 2019 have already brought many interesting predictions and forecasts for property.

In today's show, I'm going to share 5 property market predictions that will definitely happen in 2019.

I'll also have a chat with John Lindeman. We're going to find out what his research suggests about how long this property downturn is going to last. The next boom might be closer than you think.

5 Property market predictions guaranteed to happen in 2019

Around this time each year, it's customary for those of us in the property industry to peer into the future in an attempt to predict what's ahead for our housing markets in the coming year and beyond.

Making property predictions is not an exact science, but I can safely make five predictions that I am certain will be true for 2019.

• Most predictions will be wrong!

My first prediction for the year is that it will be a bad year for those in the prediction business.

I'm sure this will be correct as most of the economic and property experts get it wrong despite being armed with all the research available in today's information.

• Many things won't happen, and others will.

Many of the predictions for 2019 won't happen and a lot of things will happen this year that no forecaster thought to include in their predictions because market movements are far from an exact science.

• Some forecasts will be right

I predict that a small number of the many economic and property forecasts for 2019 will accidentally come true and those who randomly predicted them will claim to be experts, despite the fact that it was the first time they got one of their hundreds of forecasts right and that they adjusted their forecasts over the year.

• I believe that most property investors will get it wrong this year.

This one is simple –they always do!

And I'm not talking about those who fail to take action this year, those who don't even get into the market, even though that will be a big mistake this year.

• Those who get it right will do very well.

And my last prediction is that those property investors who get it right will do very well out of real estate this year and set themselves up for the years ahead.

Those who saw previous property downturns as a countercyclical opportunity have consistently done well for themselves. They recognise the slower market as a chance to invest when others are too afraid to buy and when there are more willing sellers in the market than purchasers.

A few more property predictions for 2019.

The big factors that will affect our property markets this year will be :

• The availability of finance,
• Consumer confidence and
• The result of the Federal election.

If our property markets slump further this year the RBA has the ability to lower interest rates as it has often done in the past, or APRA can loosen the screws and allow investors and home buyers borrow more freely.

I can't see any indication of a rate rise in 2019 – if anything they should fall, but the RBA doesn't like to fiddle with rates in the months leading up to an election.

Of course, any fallout from the Haynes Royal Commission into Nanking will further affect the bank's willingness to lend and possibly their need to lift rates out of cycle.

And I can't see consumer confidence changing significantly until after the election due to the unknown future status of negative gearing and Capital Gains Tax.

This means there will be further moderate price falls especially in Melbourne and Sydney and there are likely to be significant price falls for new and off the plan apartments.

In the meantime, other markets including Brisbane, Canberra and Hobart will keep rising in value.

So, our real estate markets will remain fragmented, but there won't be a crash.

Despite all the doom and gloom we hear in the media, things will not fall in a heap.

Why am I so confident about this? Because history is a great teacher!

And history tells us that over time, the value of well-located properties always go up and investors who stay in the game for the long term always do well.

Why the next property boom is not far away

• Despite the warnings from property pessimists who expect a continuing and significant downturn in our property markets, history suggests that this is unlikely. There have only been three such significant downturns in the property market between 1901 and today:
• • During the Great Depression, when the property prices fell 26% over 6 years
  • During the credit squeeze in the 1960s when property prices fell by about 18% between 1960 and 1967
  • In the fallout from the Global Financial Crisis, when property market prices fell by 8-10% between 2008 and 2012
• In each previous case, price crashes were precipitated by a share market crash. That leads to a lack of housing finance, which causes house prices to fall.
• That's very different from market conditions we're experiencing today. Currently, we have a growing economy, low unemployment, and low interest rates.
• The difference here is that the credit squeeze is self-induced. It's not caused by the economy, a share market crash, wages falling or unemployment rising. Banks are responding to possible fallout from the Royal Commission on Banking by tightening up their lending approval processes.
• The main leading indicator that suggests when the next boom is coming is population growth. Au has one of the biggest population growth rates in the world, mainly from people arriving from overseas, but also interstate growth.

Links and Resources:

Michael Yardney

Metropole Property Strategists

National Property Market and Economic Market Update 1 Day Trainings Coupon Code: PODCAST

John Lindeman- Lindeman Reports

Some of our favourite quotes from the show:

"Every year there is an X-factor – an unpredicted factor, either locally or from abroad, that impacts our markets – sometimes positively, sometimes negatively." –Michael Yardney

"As for luck, I've always thought that hard work creates good luck." –Michael Yardney

"The sooner you're able to recognize and praise greatness, the better chance you're going to have of replicating 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.

Every year is a little bit different in the property market, but 2019 is going to be a watershed year.If you're curious about what's going to be affecting the property market in the year ahead, you're going to enjoy today's conversation with Ahmad Imam. We're going to talk about the major trends what will shape our real estate markets in 2019 and beyond. After you listen to today's episode, you'll be more informed and less worried, because you'll know what to look out for, and you'll find out more about the opportunities ahead. Some of the highlights from today's discussion:

• There was a serious crisis of confidence in 2018, made worse by fear-mongering media coverage.
• The double-digit capital growth experienced in Sydney and Melbourne during the boom was not sustainable. The current correction is an important part of the property cycle.
• There is more than one property market, and not all of Australia's property markets were in a downturn in 2018.
• Experienced investors see the normal downturn in the property cycle as a time of great opportunity.
• Sydney and Melbourne got the main benefits of national low-interest rates because those are the places the majority of immigrants went.
• Investment grade properties and A-grade homes are still holding their value.
• In order for property values to "crash" it means that people have to sell and no one will be available to buy. This is different from the normal ups and downs of the market.
• Four ways to make money in property: rent return, capital growth, manufactured capital growth, and tax benefits.
• Make your investment decisions based on fundamentals, not on the media.
• Now it's important than ever to follow a system
• In 2019, there will be more media predicting market crashes, which could become a self-fulfilling prophecy.
• Interest rates won't rise in 2019.
• Wages growth will probably only increase slowly in 2019.
• Markets will become more fragmented than ever in 2019.
• Brisbane property is likely to see growth in 2019.
• The inner suburbs are doing better than outer suburbs, creating a reverse ripple effect.
• If the market falls further, APRA will recommend the banks begin lending more

Links and Resources: Michael YardneyMetropole Property Strategists Ahmad Imam

MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne, and Brisbane Use he coupon code PODCAST and come as our guest Some of our favourite quotes from the show: "We've got so many clients who've been around the block a few times, who have been waiting for this opportunity, who've geared themselves up and we're helping them buy investment-grade properties." –Michael Yardney"Those who know what's going on, those who've got a level of perspective, will see opportunities." –Michael Yardney"There's no way of getting rich quick at this stage of the property cycle." –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 a good negotiator?

Negotiating is something we it constantly in all aspects of our life, from relationships to which path you choose to take on a crowded street.

And of course, negotiation is one of the skills developed by savvy property investors, business people and entrepreneurs

Some people are very good at negotiation, while others simply take what the other party is willing to give them.

What is the difference between those two groups? The first group knows how to negotiate.

Today I'll be talking about negotiation with the man who wrote the book on negotiation – in fact, he actually wrote 3 books on the subject – Wayne Berry. Wayne is the CEO of Top Gun Business Academy.

Wayne has probably trained more successful salespeople than anyone else in Australia. So listen to our conversation to learn what you've been missing when it comes to negotiation.

Some of the highlights from today's discussion:

• Life is one big negotiation: most things we want or need are either owned or controlled by other people, so it's important to be able to negotiate to get what we want.
• Life is easier if you're a good negotiator.
• There are three leverage points in negotiation:

1. Information
2. Time
3. Power

• The first step of negotiating is to gather all of the information that you think is relevant around the situation.
• Attitude and expectation are great sources of power. Have an attitude that everything's negotiable is very empowering.
• Common mistakes people make in negotiation:
• • Not realizing that everything is negotiable.
  • Not doing any planning or preparation for the negotiation.
  • Talking too much and not listening carefully.
• Negotiating will require different tactics depending on the personality of the person you're negotiating with.
• You first need to build rapport and trust to negotiate effectively.
• If you have more options you'll have more power in a negotiation, so if you don't have other alternatives, you should create them.
• Concessions should be traded and never given away. Find out what the other party can do for you.
• Sequence of a negotiation:
• • Preparation
  • Figure out what the other party is likely to want
  • Clarify what it is that you want
  • Understanding the decision-making process of the other party
  • Find out if there are any other parties who will be involved in the decision-making process and involve them early on

Links and Resources:

Michael Yardney

Metropole Property Strategists

MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne and Brisbane

Wayne Berry – Top Gun Business Academy

Special Report – Sources of Power in a Negotiation

Special offers from Wayne Berry – Online Sales and Negotiation Skills Program

Some of our favourite quotes from the show:

"A thinker has to be sold to, negotiated with in a very, very different way to an outgoing person like you or me, or analytical people need to be sold to differently than creative people." –Michael Yardney

"If you don't like the circumstances, change the circumstances." –Wayne Berry

"We're not taking advantage of people when we're doing these negotiations, you shouldn't feel that way. You're taking advantage of the situation." –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.

The beginning of the year is a good time to reflect on the last year and how things went, as well as consider what you want to do in the new year.

Today I'm going to share with some of the things I wish I'd known earlier in life.

I'll also chat with Ken Raiss about getting your kids into the property market. If you don't have kids, don't worry – there's good information in there for you too.

And I'll answer a listener's question about the importance of past performance and how it relates to future performance of a property or location.

9 things I wish I knew back then

1. Become the pilot of your life

Everything changed for me when I learned that my thoughts lead to my feelings, my feelings lead to my actions and my actions lead to my results. This meant my inner world (my thoughts and feelings) controlled my outer world (my actions and results).

The turning point was when I realised that I was responsible for all the things (both good and bad) that happened to me. I then became the pilot of my life and not a passenger.

And even if it's not true, I know I act differently, and my results are better because I believe I'm responsible for everything that happens to me.

1. Keep your eye on the prize!

When I was young no one taught me about the Reticular Activating System, that part of your brain that only lets you see in your surroundings what you focus your thoughts on. It pretty much always helps you to find what you are looking for.

Setting goals and regularly reviewing them is one way to keep your focus on what's important and to help you take action that will move you closer to toward where you want to go.

1. Your attitude changes your reality.

It's the old "is the glass half full or half empty" story.

When things happen in life that we don't like, we can either choose to see them as a problem or as a solution waiting to be discovered.

It took me quite a while to discover that if you change your attitude, you actually change your reality. When you have a positive attitude instead of a negative, one you start to see things and viewpoints that were invisible to you before.

1. You must give to receive.

As children, we are told that the joy is in giving rather than receiving. But as we become adults, for many life becomes about what we can get out of someone or something.

However, if you want to increase the value you receive (be it money, love, kindness, opportunities) you have to increase the value you give. Because over time what you get is in proportion to what you give. While it would be nice to get something for nothing, that seldom happens.

1. Be Pro-active rather than reactive

There seem to be 3 types of people:

• Those who make things happen
• Those who watch what happens, and…
• Those that sit and wonder "what just happened?"

Be in the first group and always be on the lookout for opportunities.

1. Make your time count!

How often have you heard someone say: "time flies"? Indeed, it does, so use it wisely!

Just as you are careful about how and where you invest your money, you should also be careful as to how you invest your time.

The Pareto Principle says that 80 percent of the value we receive comes from just 20 percent of what we do with our time. So what things do you spend your time doing that take a lot of energy yet deliver few results?

1. Mistakes mean growth!

Sometimes negative experiences, mistakes, and failures can be even better than a success because they teach you something new which another win could never teach you.

However, we are often so driven to get things right that we fail to see the value in the things we get wrong. Instead, we spend our time wishing we had done it differently. Or not doing anything at all because the fear of making mistakes paralyzes us.

If you get it wrong, learn from your mistake and make it count by doing it differently next time. One "failure" can – with time – help you create many successes.

1. Don't waste your time worrying

Most things you fear will happen, never do. They are just monsters in your mind. And if they do happen then they will most likely not be as bad as you expected.

So now when confronted with a challenge I put things into perspective by asking myself:

• What's the worst that can happen?
• What's the best possible outcome? And…
• What the most likely thing that's going to happen

This means you shouldn't take things too seriously because that which seems like a big problem today, you may not even remember in five years.

So, lighten up a bit. Time spent worrying is time that could be spent identifying opportunities and taking action.

1. Don't compare yourself to others.

When you compare yourself to others you let the outside world control how you feel about yourself. Instead strive to become the best you can be and look at how far you have come, what you have accomplished and how you have grown.

In conclusion, we live in the best country in the world and at the best time in history. Appreciate what you have and enjoy the journey of life because an attitude of gratitude is a simple way to make yourself and those around you feel happy.

Options for Helping Your Children Get Into the Property Market | Ken Raiss

• Guaranteeing the Loan – if you're going to do this, be cautious. Limit the guarantee to only the amount the bank requires to give your child the loan, not the entire loan amount.
• Gifting the Money – If you choose this option, keep in mind that the money you give them will become part of any matrimonial assets, which means that in a divorce, it could go to the in-law.
• Loaning Your Child Money– Be careful of the way that money is presented in the loan application, as it could impact serviceability.
• Gift a Property – If you own a property yourself or jointly, changing the ownership will trigger capital gains tax and stamp duty.
• Use a Trust – With this method, you could buy a property now that you could gift to your child at a later date without triggering tax consequences. A lineage clause in the trust can help keep the asset in the family line in the event of a divorce.

Links and Resources:

Michael Yardney

Metropole Property Strategists

MUST ATTEND this year: - 2019 National Property & Economic Market Updates – in Sydney, Melbourne and Brisbane

Ken Raiss – Metropole Wealth Advisory

Some of our favourite quotes from the show:

"Those who've jumped onto a bandwagon of short-term growth – they'll find that this year's hot spot will become next year's not spot." –Michael Yardney

"In my mind, it's more important to look ahead than look backward." –Michael Yardney

"You've got to have the right structures at the start to ensure that your gift keeps on giving." –Michael Yardney

PLEASE LEAVE US A REVIEW

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

Have you ever felt that you're not good enough? Have you wondered why you're not appreciated or valued for who you really are?

This happens to everyone, even successful business people and entrepreneurs.

But why would wealthy and successful people feel they aren't good enough?

Something called imposter syndrome can make you feel as if you're not good enough.

Imposter syndrome causes feelings of inadequacy and self-doubt even in face of evidence to the contrary.

If you're wondering whether you not you're good enough, there are questions you can ask yourself to help figure out whether you have what it takes to be successful.

Questions to ask yourself

• Do you have the skills and knowledge that you need to succeed? If you only have the bare minimum of skills and knowledge, you'll only achieve the bare minimum of success. Seek out virtuoso skills and virtuoso knowledge.
• Are you persistent? You'll need to be in order to succeed. Persistence is not an inherent trait. The most persistent people are passionate about what they're doing.
• Do you have an unquenchable thirst for knowledge? Successful people spend a lot of time learning about the thing that they want to succeed at.
• Are you a risk taker? Some people are too cautious, while others take too many risks. Successful people take risks, but they're cautious and calculated risks.
• Do you know what you want to achieve? Successful people know how to focus on the thing that they want to succeed at.
• Do you have success habits? Whether or not you're successful depends on whether you cultivate habits that lead to success.
• Do you have the right team around you? You need experts around you to lead you in the right direction, and you need friends and family to support you. The right people will lift you up and the wrong people will drag you down.
• Do you have a positive mental attitude? Optimism is a common trait among successful people.

Links and Resources:

Michael Yardney

Metropole

Rich Habits Poor Habits

Michael Yardney's Mentorship Program

Some of our favourite quotes from the show:

"Many people believe that others, not themselves, others are the judge of whether they're good enough." –Michael Yardney

"I've worked with a lot of high-achieving people who didn't feel worthy of their success." –Michael Yardney

"Successful people seem to be continuously wanting to improve themselves." –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.