Are you looking for financial freedom or more choices in life? You're in the right place. Each week Michael Yardney shares smart property investment strategies as well as the success and personal finance secrets of the rich, in 20 minutes or less.
While Michael is best known as a property expert, he is also Australia's leading experts in the psychology of success and wealth creation and a #1 best selling author of 8 books. He frequently challenges traditional finance advice with innovative ideas on real estate investing, personal finance and wealth creation.
His wisdom stems from his personal experience and from mentoring over 2,000 business people, investors and entrepreneurs over the last decade.
Michael's message will be priceless regardless of the size of your investment portfolio - whether you're just starting out or an experienced investor wanting to move to the next level, he will provide you a roadmap for real estate investing and financial success.
40 property investment lessons I learned in the last 40 years – Part 2
Our current property boom is going to create a whole new generation of wealthy Australians.
But since most people who become involved in a property boom don’t become financially independent, last week I started this special series of podcasts discussing 40 lessons I learned in the last 40 years of property investment to hopefully help make sure that you’re one of the ones who does succeed.
Last week, I shared 20 property lessons, and today I’m going to share the other 20.
Last week, I asked, with the benefit of hindsight, would you have bought an investment property in 1980?
What if I warned you about the recessions, pandemics, and other challenges that were coming?
What I wanted to share with you in this two-part series are the lessons I learned in that time period that made me a better investor.
No one really knows what’s going to happen to the property markets. Don’t listen to who most property investors listen to for investment advice. Timing the property market is just too hard. It’s much better to buy the best asset you can afford and hold it for the long term. Any property can become an investment property – just kick out the owner and put a tenant in place and it becomes an investment property. But not all properties currently on the market are “investment grade” and will deliver wealth-producing rates of returns. Don’t rely entirely on property data – it can be misleading and can be twisted to say almost anything. Property investment is part science and part art – you need to understand and interpret data (science) but you also need an on-the-ground perspective to employ that data (art.) There are 4 ways you make money out of property: Capital growth, rental income, tax benefits, and forced appreciation or manufactured capital growth through renovations or property development. But these streams of income are not all equal. Tax-free capital growth is the most important. Cash flow is important to keep you in the property game, but capital growth will get you out of the rat race. You will never get rich from earned income or savings. Location will do around 80% of the heavy lifting of your property’s capital growth. Be greedy when others are fearful and be fearful when others are greedy. Don’t do what most property investors do. The majority of property investors fail. Treat your property investments like a business Don’t look for fun or excitement in your investing. Diversification is for people who don’t know how to invest. Having the right mindset is critical to investment success. While knowledge is important, successful investors take action. There are always risks associated with investing. Don’t be afraid of failing, because the biggest risk is not doing anything to protect your financial future. Don’t waste your time worrying. Most things you fear will happen never do. They’re just monsters in your mind. Never give up. You will have failures along the way – in fact, I’m a real success at failure, but each time I’m knocked down I get up again. You need resilience to be successful. Resources:
Get a range of my best eBooks and reports at PodcastBonus.com.au Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: 40 property investment lessons I learned in the last 40 years – Part 2
Some of our favorite quotes from the show:
“There are too many enthusiastic amateurs out there at the moment offering investment advice.” –Michael Yardney
“You need to make your money work hard for you, even when you’re asleep.” – Michael Yardney
“Everyone does everything with money, no matter how silly it looks, because at the time it makes perfect sense to them.” – Michael Yardney
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40 property investment lessons I learned in the last 40 years – Part 1
It should come as no surprise that the current property boom will create a new generation of wealthy Australians.
However, if history repeats itself, most people who get into property investment this cycle won’t become financially independent.
Just look at what happened during the last property boom, and the ones before that. 92% of those who held onto their property never got past the second property.
You can’t develop financial independence from just one or two properties.
Real estate has soared in value by more than 500% in the last 25 years, but most investors failed to develop a substantial portfolio.
So, I’ve put together a special two-part series to help you make the most of our property markets.
In today’s show and the next one, I’m going to share with you 40 property investment lessons I’ve learned in the last 40 years to help you become a successful property investor and create lifetime wealth.
Let me ask you a question…
With the benefit of hindsight and knowing what you know now, if you had the opportunity to do so, would you have bought an investment property 40 years ago?
I bet your answer would be yes.
But what if you didn’t have the benefit of hindsight and there we both were, back in 1980 and just as you were about to invest in a property I told you that in the next year or two Australia would fall into a recession and that in 6 years’ time negative gearing would be removed only to be reintroduced a couple of years later.
What if I told you there was going to be a stock market crash in 1987, and a severe recession in the early ’90s, meaning that in the first decade of owning your investment property you would have had to face all those headwinds.
Of course with the benefit of my time machine and you still being back in the 1980s as you planned to buy your first property I would also warn you about the upcoming AIDS scare and the SARS pandemic, the Asian financial crisis, September 11th, the Global Financial Crisis, the Coronavirus induced world recession.
Would still have had the courage to buy that property back then in 1980?
The answer for many people would now be: “No…why on earth would I invest in property knowing there are so many challenges, problems, and risks ahead?”
Of course, they would have missed out on some amazing wealth-building opportunities, wouldn’t they?
I was already investing for almost a decade back in 1980 and I did buy another investment property that year.
And over the years the capital growth I achieved from my investment properties allowed me to keep adding to my portfolio meaning that today I have a significant “cash machine” that gives me the lifestyle choices I was looking for back then.
Of course, along the way, I’ve had some great investment wins but I’ve also made more than my share of mistakes.
And I learned many lessons that I wish I knew back then, so here are…
40 property investment lessons I learned in the last 40 years
The economy and our property markets move in cycles. Booms never last forever, neither do busts. That is mainly because most of us get swept up in the optimism or pessimism of others. Despite the ups and downs, the long-term trend for well-located capital city properties is rising values. Even though they are armed with all the research available in today’s information age, economists never seem to agree where our property markets are heading and usually get their forecasts wrong. Every year we get hit by an X factor – an unforeseen event or situation that blows all our carefully laid plans away. Then every decade or so we have a major event and the world “breaks.” There are multiple property markets in Australia. Property investment is risky in the short term, but secure in the long term. It is definitely not a way to get rich quickly Since property is a long-term game, don’t look for
How to Minimize Tax – Your Largest Expense, with Stuart Wemyss
You’re guaranteed two things in life – death, and taxes.
While taking care of your physical and mental health can lead to a longer, healthier life and stave of the death part, what can you do to legally minimize your tax?
Since everyone wants to pay less come tax time, in today’s podcast I chat with independent financial advisor Stuart Wemyss about what options are available to you.
Minimizing Your Tax
Tax isn’t necessarily a bad thing.
If you’re paying tax, it means that you are making money.
But of course, there’s no need to pay any more than you legally have to.
Minimize your risk Stick within the letter of the law, but explore legitimate ways to minimize tax liabilities Many more aggressive tax minimizing measures delay tax rather than permanently reduce it Implementing these strategies may create costs (tax advice fees and documentation) and complexities Sometimes, it’s better to keep things simple Minimize tax pre-retirement Personal exertion income earners have few avenues to minimize tax You can use negative gearing and/or contribute into super, but that’s about it Contribute to your super After 1 July 2021, individuals can contribute up to $27,500 per year into super and claim a tax deduction for this expense Borrow to invest Borrowing to invest (to generate capital growth) often makes good sense, especially if you are more than 10 years from retirement Minimize tax on investment returns If there are not many avenues to reduce the amount of tax you pay on your income, then at least make sure you don’t pay too much tax on your investment returns. Invest in assets that generate more capital growth than income Make sure the investments are owned in the most tax-effective way Minimize land tax Map out a plan and follow expert advice to minimize land tax as much as possible Consider capital gains tax Self-employment gives you more options Make sure that your business is structured correctly Stuart’s new podcast, The Holistic Accountant, is a good way to learn more about this You should aim to pay zero tax in retirement A couple can have up to $3.4 million invested in super, and not pay any tax If you plan well, it is a reasonable expectation to pay little to no tax in retirement If you can’t save tax, focus on investment returns If you earn money, it’s likely you will have to pay your fair share of tax. That’s life Cheating is never worth it The ATO is cracking down on dodgy deductions and the penalties can be up to double the tax plus interest Resources:
Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us
Stuart Wemyss – Prosolution Private Clients
Stuart’s Book – Rules of the Lending Game
Shownotes plus more here: How to Minimize Tax – Your Largest Expense, with Stuart Wemyss
Some of our favourite quotes from the show:
“Tax isn’t necessarily a bad thing. No one likes paying it, but if you’re paying it, I guess it means you’re making money.” – Michael Yardney
“If you’re going to own a property investment business, you should actually own the best assets you can in best locations you can, and land tax unfortunately is a cost of doing business.” – Michael Yardney
“Those who invest in their abilities their entire lives, they become the beneficiaries of luck.” – Michael Yardney
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The Truth Behind Australia’s Economic Recovery with Ken Raiss
What a year it’s been.
This time last year Australia was heading into its first recession and deepest recession in decades.
Yet last week the Australian Bureau of Statistics confirmed the strength of Australia’s economic rebound. It was the fastest economic recovery from a recession in 45 years.
In fact, we are one of only three countries where our economy is ahead of where it was at the beginning of the coronavirus pandemic, but today can race and I unpack the statistics and explain what’s going on – the truth behind Australia’s economic recovery.
But don’t worry if you’re not into economics, my chat today with Ken Raiss, Australia’s leading property tax strategist, will be in plain English and we’ll unpack what’s going on so you understand what’s ahead- both the good and some of the headwinds that may slow us down, so that you’ll be able to make a better-informed investment, and financial, and business decisions.
What you’ll be hearing today is a portion of a private webinar we conducted for the attendees of Wealth Retreat to give them some insight before they join us, and while you won’t be able to see the slides, I’m sure our description will be sufficient for you to get benefit from our chat.
Australia’s impressive economic recovery from the COVID-19 recession was confirmed with the strong 1.8 percent rise in March quarter GDP.
This followed unprecedented growth of 3.2 percent in the December quarter and 3.5 percent in the September quarter of 2020.
Our economic output is now higher than it was before the COVID-19 recession hit, with easy monetary policy, booming commodity prices, demand for resources from the rampant Chinese economy, and fiscal policy stimulus all playing a part.
Back in the first three months of this year when we had JobKeeper, enhanced unemployment benefits, and no lockdowns and Australia roared out of recession.
The GDP figures released at the beginning of June, which were for the first quarter of the year up til the end of March were for the months leading up to the end of JobKeeper.
Australians spent, earned, and produced an impressive 1.8% more than in three months to December, which was itself more 3.2% more than the three months to September, which was itself 3.5% more than the three months before that.
Our growth of more than 8% was the most over three quarters since 1968.
But it followed a collapse in gross domestic product of 7% – by far the worst since the Bureau of Statistics began compiling records in 1959.
The net result over the year to March growth of 1.1%, an extraordinary result which means that, at least until Victoria’s (just extended) lockdown, we were producing, earning, and spending more than before the COVID recession.
I today’s podcast Ken and I discuss:
what GDP is and why so much fuss is made about it Why I think that having a single overriding ‘economic’ health measure such as GDP is flawed What’s happening to unemployment, job growth, business, and private expenditure. Here are 7 reasons to be optimistic about the future.
Covid vaccines will help in underpinning reopening and recovery Global growth is recovering rapidly — driven by vaccines enabling reopening, monetary and fiscal stimulus, and pent-up demand. Growth in consumer spending is well supported Dwelling investment will provide a strong contribution to growth — the surge in building approvals points to more upside in housing construction this year. Business investment is strengthening - — investment plans for the next financial year are up nearly 15% on plans for a year ago which is consistent with high levels of business confidence, excess corporate cash, and the instant asset write-off tax break. Fiscal stimulus will continue Monetary policy will remain easy However, there are some headwinds.
Economic growth should continue this year and th
Now what next for our property markets? With Dr. Andrew Wilson
What’s ahead for our property markets for the rest of 2021?
That’s a common question being asked now that our property markets have been booming for quite some time.
And that’s the question I’m going to ask Dr Andrew Wilson, Australia’s leading housing economist in today’s show.
You’ll also hear his thoughts on what’s ahead for the rental markets, is inflation on the rebound and should we be locking in on interest rates with the speculation that interest rates are going to rise?
Now you probably know that every week I record a Property Insiders video with Dr Wilson where we give you our thoughts and commentary on the property market and our economy, and today’s podcast is the audio of last week video show.
You’ll hear Dr Wilson and I explain how our property markets have been bounding along this year. Buyers are still out in force – owner-occupiers, investors, and first home buyers – at a time when available supply is struggling to keep up, keeping pushes prices higher.
In fact, a number of capital city property markets are already showing double-digit capital growth this year.
Listen in as we discuss:
What’s ahead for our property markets for the balance of this year. What happening in our auction markets as they give a good “in time indicator” of what’s happening on the ground. How our rental markets have turned around and vacancies are falling causing rents to rise. Why Dr Wilson doesn’t believe we’ll get sufficiently high inflation to raise interest rates for some time, and… Why some banks are recommending customers lock in their interest rates and why he doesn’t think it’s a good idea. Resources:
Guest: Dr. Andrew Wilson, chief economist of My Housing Market
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Subscribe to my weekly Property Insider video with Dr Andrew Wilson here- www.PropertyInsiders.info
Collect your bundle of eBooks and reports- www.PodcastBonus.com.au
Shownotes plus more here: Now what next for our property markets? With Dr. Andrew Wilson
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I’ve learned to invest like the pros | My biggest investment mistake + more
Why don’t most property investors succeed, especially since there’s so much information out there and so many people willing to help them?
Well, today I’ve got three separate segments that are going to help you understand why many investors don’t succeed, but of course, the intention of that is to even the odds in your favour, to make sure you do succeed.
I’m going to share with you probably the worst investment mistake I made, but it turned out to be one of the best investment lessons I made.
It was a mistake I made early in my career when I lost 100% of my equity. Boy was it an expensive mistake and a blow to my ego.
I guess it shows that I didn’t start off as a successful investor. There are some lessons in that alone.
I’m also going to share with you a discussion I had with Joseph my hairdresser who learned how to invest like the pros. Isn’t that something that you’d like to know?
Then, in my mindset moment, I’ll help you understand that I’m a real success at failure.
So lots about success and failure in today’s show, but the intention of it is to make you a more successful property investor and more successful in all areas of your life.
How to Invest Like the Pros
I was having my hair cut the other day when Joseph, my barber, said, “Michael — I’m going to get into property investing and I’m going to make a fortune because I’ve learned how to invest like the pros!”
When Joseph told me he knows how to invest like the pros, I had to ask — “OK — how are you going to do it?”
“Easy,” he said. “I’ve been to a seminar and signed up for a course.”
Then he pulled out the advertisement in the magazine that attracted his attention.
It promised the ability to control millions of dollars worth of property with none of your own money and bypassing the banks. It also explained how the course presenter had made millions of dollars in seven days.
At that point, I felt sorry for Joseph and for the thousands of novice (and some experienced) property investors who will be taken by the new breed of property spruikers who are once again out in force.
You can’t become wealthy in seven days. You probably couldn’t even read the course material in seven days.
Here is what the real pros know:
You can’t create wealth through property overnight, but you can certainly become very rich in the medium to long term by knuckling down and seriously applying yourself in a dedicated, disciplined, persistent way.
You get there by following a proven system and by having a safe property and finance strategy.
You then implement this by buying the right property, in the right location, at the right price, and holding it for the long term.
Not by adding hot water to a packet of magic beans and counting to seven.
You can and should accelerate the process by learning the strategies of value-adding through renovations and development, but you can’t skip the fundamental process.
While property spruikers went quiet during the real estate downturn, unfortunately, the new property cycle is bringing out a fresh group of “property pretenders”.
There are now property “experts” out there selling advice and courses despite never having built their own property portfolios.
This makes it timely to remind listeners that seminars promising easy wealth through property have all too often led to financial ruin.
It’s just the cycle repeating itself.
Of course, this doesn’t mean you should do it on your own.
To become a successful investor, you will need to surround yourself with a team of independent and unbiased professionals — a team of people who are known, proven, and trusted.
Then go ahead and take advantage of the new property cycle, because the future is bright for those who invest sensibly in property.
My worst investment loss
One of my early investments was a complete
I first came across the podcast a month or so ago and since then I have listened to at least the last 6 months worth
Michael Give so much knowledge about investing over a wide range of investing o mostly like his mindset messages it’s good to see someone actually touching on one of the hardest parts of investing
Best Free Financial Education
This is by far the best content I have come across.
It’s in-depth discussion offers golden tips for personal development.
How can this be for free?
I have read and heard podcasts of a few property experts, none compare to this one! It’s relevant to Australians, straight to the point, no fluff and best of all the experience Michale has in property puts weight behind his views and opinions.
Highly recommended, been on this podcast for over two months now, I even re-listen to episodes because each time a new connection or idea is made...how is this for free?