The Michael Yardney Podcast | Property Investment, Success & Money

Are you looking for financial freedom or more choices in life? You're in the right place. Twice each week Michael Yardney shares smart property investment strategies as well as the success and personal finance secrets of the rich, in around 30 minutes. MIchael has been voted one of Australia's top 50 Influential Thought Leaders and while he is best known as a real estate investment expert, he is also Australia's leading expert in the psychology of success and wealth creation and a #1 best selling author of 9 books. Michael frequently challenges traditional finance advice with innovative ideas on property 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 real estate 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. http://MichaelYardneyPodcast.com

Believe it or not - more than one in four properties were purchased with cash in 2023. With Julie Toth 04/17/2024

Simon Kuestenmacher's Crystal Ball Demographic Forecasts and Real Estate 04/15/2024

5 ways to ensure your property investments outperform this cycle 04/10/2024

Unravelling Australia's Rental Crisis with Dr. Andrew Wilson: Insights & Endgames 04/08/2024

3.7% Unemployment: Has Australia Kissed Rate Cuts Goodbye? Dr. Andrew Wilson Weighs In 04/03/2024

19 Brutal Truths about Property Investment That No One Else Will Tell You with Brett Warren 04/01/2024

Wealth Building Strategies from Australia's Premier Wealth Retreat with Brett Warren and Pete Wargent 03/27/2024

Is Australia growing too fast? Population Booms and Their Price with Ross Elliott 03/25/2024

Our No-Nonsense Big Picture Podcast About the Economy and Property Markets, with Pete Wargent 03/20/2024

Don’t Fall for the Trap: Navigating the Minefield of Financial Scams with Stuart Wemyss 03/18/2024

Rich Habits for Real Estate Success: Tom Corley's Approach 03/13/2024

From Boomers to Zoomers: Simon Kuestenmacher's Analysis of Decadal Shifts in Property 03/11/2024

40 years, 40 property investment lessons to crack the real estate code 03/06/2024

40 years, 40 property investment lessons to crack the real estate code Hindsight is a wonderful thing, isn’t it? Knowing what you know now, what would you have done differently if you had the opportunity to invest in property 10, 20, or even 40 years ago? Well, I've been investing for decades, which gives me the perspective to see patterns in the chaos that many others see in the world of property and their economy at the moment. Join me on a reflective journey back to 1980 as I share a treasure trove of insights from my property investment odyssey. Listen in as I draw parallels between past economic challenges and today's landscape, underscoring the importance of perspective and pattern recognition for successful investing. You'll hear candid stories of my own property investment triumphs and missteps, aiming to arm you with direction and certainty for the often unpredictable property markets. This time, it's a solo session—just you and me—unpacking the timeless wisdom that has stood the test of decades in the property investment realm. Wealth Through Walls: Lessons from a Lifelong Property Investor In this episode, listeners will be taken on a journey through the evolution of the real estate market and gain insights into the strategies that have stood the test of time. From understanding market cycles to the nuances of Australian property investment, we explore many lessons I wish I knew starting out and the triumphs and challenges that have shaped my approach to building wealth through real estate. ● The importance of perspective and pattern recognition in navigating the property investment landscape ● Economic challenges and market fluctuations over the past 40 years ● The significance of long-term wealth strategies, asset protection, and risk mitigation ● The pitfalls of applying foreign investment strategies to the Australian market ● Leveraging compounding, renovations, and strategic debt to manufacture capital growth ● Distinguishing investment-grade properties and the science and art of property investment ● Emphasizing location, the right property type, and avoiding the crowd for capital growth ● The psychological resilience required to succeed in the unpredictable real estate market ● Continuous learning and adapting to changes are essential components of a successful investment philosophy This episode is a must-listen for anyone looking to deepen their understanding of real estate investing, whether they are seasoned investors or just starting out. Hopefully, today’s show can provide a roadmap to building a robust property portfolio and achieving financial freedom through smart and strategic real estate decisions. Links and Resources: Get the team at to help build your personal Get a bundle of eBooks and reports – Join us at Wealth Retreat 2024 on the Gold Coast in April 2024 – Some of our favorite quotes from the show: “Over the years, another lesson I learned was that every year we get hit by an X factor, an unforeseen event or situation, something that blows away all our carefully laid plans.” – “Often the first 10 years of investing are wasted making mistakes and learning what not to do, following the wrong path, taking the wrong strategy or not having any strategy.” – “And when you expect to fail, fear loses all its power over you. When you no longer fear failure, you feel empowered to take action.”– 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. /episode/index/show/michaelyardneypodcast/id/29358018

The Federal inquiry into the rental crisis was a “waste of taxpayers’ money, with Nicola McDougall 03/04/2024

Unravelling Domain’s Latest Housing Reports: Insights from Dr. Nicola Powell 02/28/2024

Our no-nonsense Big Picture Podcast about the economy and property markets with Pete Wargent 02/26/2024

Breaking Your Wealth Barrier: Resetting Your “Wealth Thermostat” with Jackson Millan 02/21/2024

How interest rates are reshaping our property markets in 2024, with Stuart Wemyss 02/19/2024

Stop picking on property investors with Mike Mortlock 02/14/2024

Pocketing Prosperity: Exploring Morgan Housel's Wealth Wisdom Part 2 02/12/2024

10 property forecasts for the next decade and 10 things that will stay the same With Brett Warren 02/07/2024

18 Wealth Lessons from “The Psychology of Money” by Morgan Housel with Mark Creedon 02/05/2024

23 property investment lessons from 2023 you don’t want to forget 01/31/2024

23 property investment lessons from 2023 you don’t want to forget Knowing what you know now, what would you have done differently in 2023? In this episode, we reflect on the pivotal lessons of the past year, providing 23 key insights that have reshaped our real estate investment strategies. From the intricate analysis of diverse Australian property cycles to the crafting of tailored strategic plans, we dissect the forces influencing market dynamics and how to leverage them for wealth accumulation. Emphasizing the significance of risk management, asset diversity, and long-term planning, we delve into the marathon journey to financial independence through property investment. Alongside practical investment wisdom, we also touch on the philosophical, advocating for contentment and gratitude in our pursuit of success. This episode is not just a treasure trove of investment advice, but also a reminder of the importance of aligning our financial goals with personal fulfillment. And as I share these lessons with you I hope they'll give you some direction and certainty in the challenging markets ahead. The Investor's Compass: 23 Vital Lessons in 2023's Real Estate Market With a focus on the Australian real estate landscape, these 23 lessons provide a comprehensive guide to building a resilient and profitable property portfolio. Listeners are invited to explore the lessons learned from the past and how they can be applied to ensure investment success in the current year. 1. Expect the unexpected The biggest risk is the one that no one sees coming. If no one sees it coming then no one is prepared for it and if no one is prepared for it, its damage will be amplified when it arrives. 2. Focus on the long term It’s not a good strategy to make 30-year investment decisions based on the last 30 minutes of news. 3. It’s the media’s job to entertain you – not educate you Negative headlines drive clicks and views and get eyes on advertiser content. That doesn’t mean they’re reliable. 4. Take economic forecasts with a grain of salt It’s often the things you can’t predict that make the difference, while the things you can predict don’t have as big an impact. 5. Don’t believe the doomsayers There will always be somebody wanting to stall the aspirations of their fellow Australians who are looking to take their financial futures into their own hands and do something about it. 6. No one really knows what’s going to happen to the property markets While it’s important to have mentors, make sure you’re listening to somebody whose opinions are based on successfully investing through multiple cycles. 7. There is no such thing as the “Australian property market.” There are multiple markets in Australia, and each state is at a particular stage of its own property cycle within each state multiple submarkets depend on price point, geography, and type of property. 8. Don’t try and time the market If you buy the right investment-grade assets, time in the market is much more important than timing the market. 9. The crowd is usually wrong Market sentiment is a key driver of property cycles and one of the reasons why our markets overreact, overshooting the mark during booms and getting too depressed during slumps. 10. Property investment is a game of finance with some houses thrown in the middle Strategic property investors have a financial plan to buy themselves not only real estate but also time. 11. You need to plan Attaining wealth doesn’t just happen, it’s the result of a well-executed plan. 12. Invest for Capital Growth Cash flow is important and will keep you in the game, but it’s capital growth that gets you out of the rat race. 13. There will always be reasons not to invest Focus on your long-term goals and remember that the year’s crises are part of the normal course of history. 14. Property investment is risky in the short-term, but secure in the long term 2022 reminded many property investors that real estate is not a way to get rich quickly. Those who stay in the property game benefit from the power of compounding growth which builds wealth but takes time. 15. Plan for the worst and look forward to the best There will always be those X factors that crop up and affect the market. Protect yourself by planning well, but also planning on the plan not going according to plan. 16. You can't rely on one stream of income Rather than relying on your job as an income source, become financially fluent, learn to invest, and develop multiple streams of income. 17. 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. 18. Cautious optimism is better for your investment health than perma-pessimism. But having said that, optimists are more successful in all areas of life than pessimists. 19. Time is a limited resource – don’t waste it You can lose money and get it back again, if you’re sick you can often get your health back again, but once the time has gone it is gone and is irretrievable. Start to capitalize on the time you have and get a whole lot more done. 20. The only certainty is change Changes are a normal part of life; the problem is most of us don’t like change – we like certainty. However, learning to expect change has brought me hope during challenging or unexpected life events. 21. Worry Better Worrying about the right things can motivate you, but if you find it unproductive, try to take your mind off things by getting engaged in other activities. 22. This too shall pass I've learned that making long-term investment decisions based on short-term concerns is not a recipe for success. 23. 2023 was the year of AI Moving forward, it's likely you will be utilizing tools and platforms that should streamline your investment process, provide valuable insights, and manage your properties efficiently. The episode underscores the idea that success is not just about acquiring assets but also about meticulous planning, understanding market trends, and preparing for the unexpected. Links and Resources: Get the team at to help build your personal Get a bundle of eBooks and reports – Join us at Wealth Retreat 2024 on the Gold Coast in April 2024 – Some of our favorite quotes from the show: “I guess one way of looking at the media is to imagine how much stuff you'd have to make up if you were forced to talk 24-7. Remember, that's really what watching the financial news on TV or in the media is like.” – “So I guess the message from this is remember that each property boom sets us up for the next downturn.” – “I think the first thing you should do is practice noticing what's great about what you've got.” – 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. /episode/index/show/michaelyardneypodcast/id/29388583

Critical Investment Lessons we learned at Wealth Retreat with Brett Warren | Summer Series 01/29/2024

Critical Investment Lessons we learned at Wealth Retreat with Brett Warren | Summer Series Today I want to share some top wealth-creating insights that Brett Warren and I gained at Wealth Retreat. This is Australia’s number one learning and networking event for already successful property investors, businesspeople, and entrepreneurs, which we held on the Gold Coast in April last year. As I spoke to many of the attendees from previous years, I was blown away and humbled by the feedback as they explained how Wealth Retreat had changed the way they handle their investments, business, and in fact many aspects of their life and how it was the best event they had ever attended. So, what did they learn? That’s what we’re going to discuss today. Wealth Retreat Lessons Last year’s Wealth Retreat on the Gold Coast has now been and gone. There were 100 successful property investors, business people, and entrepreneurs in the room. And while they learned some great lessons from the world-class presenters up on stage, they also learned from the other guests over the 5 days. After all, how often do you find yourself in a room full of successful, like-minded people, that walk and talk the same language? Opportunities like this are few and far between and not to be missed. So today, I’m joined by Brett Warren, national director of Metropole who’s been to Wealth Retreat over a dozen times, to see what lessons he learned, or re-learned, that he could share with you. Lesson 1 – Creating Wealth is a Process, Not an Event When I started my wealth journey, I was always waiting for something “big” to happen. I too played the lottery and waited and hoped. Maybe one day I would buy a property and develop it to then sell for a huge profit. To my relief and probably yours, I found out there is a better way. We had a great session about using a specific framework to find a pathway to your goals. We started out by working out what our end goal is, that is what we would like to achieve, and in what timeframe. Then by following the proven framework, we can reverse engineer and put the steps in place to understand what is required to get there. Lesson 2 – Time and Task Prioritisation How is your time management? You need to work out what your A, B, C, and D class activities are. In short, class activities are generally events that happen maybe only a couple of times each year but can generate the greatest amount of income. An example may be attending an event like Wealth Retreat. B class activities are next, and while not as important as A class activities will still generate a good amount of income and so on to C class and then D class activities. D class activities are the least of the income-producing tasks, like fixing a printer or minor admin tasks. This was a great exercise to understand where you are your most dollar productive. Lesson 3 – A Wealth Thermostat Your mind is like a cup, once it is full of water, it overflows, and you are unable to put any more water into the cup. To take on more water, you need to increase your cup size. So, to increase your financial thermostat, and therefore your wealth, you need to increase your mind's capacity. If you liken the water to opportunity and your mind to the cup, once your mind reaches capacity, you may miss opportunities that come your way. Lesson 4 – To become financially independent you need to treat your property investments like a business Over the last few years, it became obvious to me that those investors who treated their property investments like a business were the ones who managed to develop financial independence from their properties. And those that didn’t seemed to be working for their properties rather than the other way around. A small group of Australian investors treats their properties as a business. They are the CEO of their business and realize that it’s not how much money you make that matters, but how hard that money works for you and how much you keep that matters. They have a plan including a property plan, a finance plan, a tax plan, and an asset protection plan and are surrounded by a good team of specialists. Lesson 5 – Alone you are vulnerable; connected we are strong Many investors think they must do it all themselves or learn it all themselves. Partly because they think they know better than others or maybe it’s because they are not hanging around the right people – supportive, encouraging people. And these get harder to find, the more successful you are. But we cannot be our best selves in isolation from the world. We need other people. The key is making sure we're spending time with people who inspire, empower, and encourage us. Lesson 6 – Your peer group is contagious ● Will your current peer group empower you to reach your deepest dreams goals and your life’s purpose? ● Will they hold you accountable to a high enough standard or will they let you slip back into your old comfort zone? ● Will they feed your ideas and give you input to help you overcome challenges you face along the way? ● Will they support you when you're having a tough moment? ● Do they inspire you to keep performing at your highest and best capabilities? If not, what are you doing about changing that? It's ultimately up to you to find and create the peer group that will help you live the life you want to live. Lesson 7 – After a "Loss" we tend to go back to what we knew One of the most important insights that I want to share is that when most people suffer a "loss" financially, their natural tendency is to pull back and isolate themselves. But isolation only makes things worse. You need to accurately assess the situation, learn your lessons, and move forward. This is why your peer group and mastermind team are so essential. We are moving into a new financial era - a time of amazing opportunities and some real risks. To succeed in this environment we need the support, insights, and perspective of a trusted group of advisers and peers. Lesson 8 – Your Mastermind Team One of the exciting parts of Wealth Retreat this year was the small group breakout sessions. This is a masterminding technique where you ask a focused power question to your mastermind group, and they have time to brainstorm as many possible answers to your question as possible. 9. Real Wealth Is What You Give The most successful participants from Wealth Retreat all have moved to a place where money isn't what motivates them. Money is a sufficiency need. Once you have enough of it, it ceases to be important. Links and Resources: – Get the team at to help build your personal Get a bundle of eBooks and reports = Join us at Wealth Retreat 2024. Some of our favourite quotes from the show: “Most people’s financial thermostat has been set by the things they learn, the things they heard, the things they experienced as a child.” – “I think that’s one of the traits of successful people, that they’re actually not jealous of successful people.” – “Once money’s sufficient, then you have to move on to other things.” - 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. /episode/index/show/michaelyardneypodcast/id/29309453

Forecasting property investing returns: what can we expect over the next decade? 01/26/2024

Forecasting property investing returns: what can we expect over the next decade? Now here’s a question for you - what sort of returns can you expect from your property investments over the next decade? In today’s episode, independent financial advisor Stuart Wemyss provides an insightful exploration into what you can expect in the coming years. Unpacking the Next Decade of Property Investment Returns With a deep dive into data-driven analysis, historical trends, and potential opportunities and risks, my conversation with Stuart offers a wealth of knowledge for those navigating the property investment and rental market landscapes. We explore the recent period of low rental growth, the contributing factors, and possible solutions to balance the needs of owner-occupiers and investors. ● Potential returns for property investors over the next decade, focusing on data-driven analysis, historical trends, and potential opportunities and risks. ● The average 9.7% rolling decade return for Melbourne and Sydney, which demonstrates the significance of long-term returns over short-term predictions. ● The recent period of low rental growth and the contributing factors, such as low interest rates and dominance of owner-occupiers in the market. ● The need for a balance between owner-occupiers and investors to solve the current rental crisis. ● How to attract more private landlords to provide affordable accommodation and help those who are struggling to enter the mortgage market. ● Recent market changes and their impact on rental and capital growth. ● The potential role of the government in resolving the rental crisis. ● The concept of mean reversion and its potential impact on future returns. ● The importance of being prepared for uncertainties and potential headwinds in the property market. Links and Resources: – Get the team at to help build your personal Get a bundle of eBooks and reports – Some of our favourite quotes from the show: “But we were talking about the concept that there aren't enough private landlords, and in Australia the system is such that about a third of Australians rent, and not necessarily because they're poor, often just because of the stage of their life.” – “There's going to be headwinds this year. Interest rates are going to probably remain a bit higher a bit longer than some expected, inflation is going to take a little bit longer to get under control if the government has its way.” – “Rather than keep us alive, our worries are more like spinning on a wheel in a ditch.” – 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. /episode/index/show/michaelyardneypodcast/id/29106523

This may be exactly what is holding you back from being a more successful investor, with Mark Creedon | Summer Series 01/24/2024

This may be exactly what is holding you back from being a more successful investor, with Mark Creedon | Summer Series Maybe you’re too biased to become a successful property investor? What do I mean by that? Well…did you know that we can sometimes be our own worst enemy as property investors? It’s not because of the decisions we make, the opportunities we consider, or the investments we miss out on, but rather, it’s due to the way we think. By the last count, I’ve read that there are 188 types of these fallible mental shortcuts in existence, and they constantly impede our ability to make the best decisions about our careers, our relationships, and for building wealth over time. So, whether you are a beginner or an experienced investor, whether you’re in business or an entrepreneur you’ll enjoy my chat today with Mark Creedon, founder of Mastermind Business Accelerator as we discuss why seemingly rational people act irrationally when it comes to money. Cognitive Biases You Need to Know Without always knowing it, property investors are pre-programmed with a range of biases which may cause them to interpret information incorrectly and thus undertake sub-optimal investment decisions. You see, most of us think we’re rational people but we’re not. There is no shortage of cognitive biases out there that can trip up our brains. However, because cognitive biases are based on generalizations and assumptions, they can’t always be correct. And if you don’t check your reasoning, they can lead to judgments and decisions that negatively impact your business. 1. Confirmation bias People tend to search for information that confirms their view of the world and ignore what doesn’t fit. In an uncertain world, we love to be right because it helps us make sense of things. One way to counter confirmation bias is to read things you’re going to disagree with. In other words, read all you can from reputable sources, whether it’s confirming your original view or not. 2. Anchoring bias We have a tendency to use anchors or reference points to make decisions and evaluations, and sometimes these lead us astray. This is because the initial price you set for a house or car or more abstractly, for a deal of any kind, tends to have ramifications right through the process of coming to an agreement. Whether we like it or not, our minds keep referring back to that initial number. It’s important for you to evaluate any property deal based on its own fundamentals and all the information you have available from your research and due diligence at the time. 3. Awareness bias How are your investments performing – are you happy with the results you’re getting? It’s been shown the poorest performers in all areas of life are the least aware of their own incompetence, a phenomenon known as the Dunning-Kruger effect. If you’re the smartest person on your team you’re in trouble. It’s best to work with a team of mentors and professional advisors. 4. Positivity bias In the face of lack of capital growth, prolonged vacancies, or inflated expenses, some investors continue to believe that their investment will turn the corner “one day.” The problem with this is that when all signs point to a dud investment, it likely is one – but positivity bias can stand in the way of an investor taking action to rectify the situation. One of the best things an investor can do is admit what they don’t know and get a good team of professionals around them. 5. Negativity bias Just as some investors can be overly positive this is the tendency to put more emphasis on negative experiences rather than positive ones. Our ancestors evolved a brain that routinely tricked them into making three mistakes: overestimating threats, underestimating opportunities, and underestimating resources. This helped keep them alive. It’s a great way to pass on genes, but a lousy way to promote quality of life or grow your wealth through property. Fact is: there will always be property pessimists around, but you can minimize your risks and maximize your upside if you educate yourself and become financially fluent, follow a proven strategy, and get a good team around you. 6. Status quo bias This describes our tendency to stick with what we know, whether or not it’s the best course of action. Psychologists call this “loss aversion” and it explains why so many Australians are willing to stick their money in a plain old bank account earning minimal interest, rather than taking the “perceived risk” of property investment. Successful investors, businesspeople, and entrepreneurs have mentors, coaches, and mastermind groups to help them see their blind spots and to encourage them to keep moving forward. 7. Survivorship Bias The misconception here is that you should focus on the successful if you wish to become successful, while the truth is that when failure becomes invisible, the difference between failure and success may also become invisible. The trick when looking for advice is to not only learn what to do but also look for what not to do. 8. Bandwagon bias This is the psychological phenomenon whereby people do something primarily because other people are doing it. The bandwagon effect has wide implications but is commonly seen during strong property markets where the media stirs up a frenzy and it’s one of the factors that lead to asset bubbles. But when it comes to financial matters we know “the herd” is usually wrong – most property investors never build a substantial portfolio. It pays to remember that just because everyone else is doing it, that doesn’t mean you should follow the crowds. 9. Restraint bias Following on from bandwagon bias, restraint bias is the tendency for people to overestimate their ability to control impulsive behavior. Psychologists say the very people who think they are most restrained are also most likely to be impulsive. 10. Bias bias Failing to recognize your cognitive biases is a bias in itself. Arguably this is the most damaging bias because having blind spots means you’re less likely to recognize any of these psychological influences in yourself. Simply becoming aware of these biases means half your battle against your own worst enemy – yourself – is won. The bottom line: We all want to think we are rational and biases are things that afflict other people. However our brains are designed with blind spots and one of their clever tricks is to confer on us the comforting delusion that we, personally, do not have any biases. This is why so many of us are not only bad with money but make the same mistakes over and over again. Links and Resources: Get the team at to help build your personal Why not join Learn more about – Business Coach to some of Australia’s leading entrepreneurs Get a copy of Mark’s new book – Have a Business not a Job Get a bundle of eBooks and reports – Some of our favourite quotes from the show: “It’s actually not as much the investment, it’s about the person.” – “In fact, it’s been shown the poorest performers in all areas of life are the least aware of their own incompetence.” – “There will always be pessimists around, but I don’t really know any rich pessimists.” - 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. /episode/index/show/michaelyardneypodcast/id/29309218

Is buying property really harder today than it was decades ago? With Stuart Wemyss | Summer Series 01/22/2024

Is buying property really harder today than it was decades ago? With Stuart Wemyss | Summer Series Homeownership is looking further out of reach for anyone without family wealth, as over the last few years property prices kept growing and wages fail to keep up. Over the last decade or so property prices keep growing and wages failed to keep up and over the last few years affordability seems to have decreased as interest rates keep increasing. Is it really harder to get into the property market today than it was a number of decades ago? That’s what I discuss today with independent financial adviser Stuart Wemyss. And even if you already own a home, I’m sure our discussion will be valuable because it will help you understand what we believe is ahead for our housing market. Is homeownership harder today? Many people are suggesting it's much harder to buy a property today than it was years ago. They’re telling us that Baby Boomers don't really understand how hard it is. My guest today, independent financial advisor Stuart Wemyss, believes it's actually easier to buy a property today than it was many decades ago. Now I know some people listening to this one disagree so I'm looking forward to hearing his views. Millennials are telling us that buying a house today is far harder than when their parent got into the market because the rate by which property prices have soared is well beyond that of wage growth. At first glance these arguments make sense, but there’s more to it than that. I would like to suggest that in many respects, buying a property today is easier than it was many decades ago. 1. Abundant access to information, knowledge, strategies, advice, and so forth How do you get ahead financially? One solution is to get the best advice so that you make the most of your financial opportunities. Often people learn by trial and error, but that can be expensive and waste valuable time. You can fast-track your financial success by learning the best way to use your money. ● There is an absolute abundance of information that is available on the internet. ● Most of it is accessible instantaneously at no cost. ● Blogs, forums, podcasts, books, websites, software, and so on. It cannot be underestimated how valuable that is. 25 years ago, no such information was available. There were a few books about property investing, but not many. The only way to learn about borrowing strategies was by meeting bank staff, but they weren’t particularly knowledgeable or helpful. Therefore, unless you knew a successful property investor, it was hard to access knowledge. As the saying goes, “knowledge is power”. 2. Much higher borrowing capacity Thirty to forty years ago, borrowing 3 times your gross income was seen as very high risk. Today, the banking regulator (APRA) classifies a high-risk borrower as anyone that borrows more than 6 times their gross income. Therefore, by this measure, borrowing capacity has increased by 2 to 3 times over the past few decades. In addition, 30 years ago, it was not possible to borrow more than 80% of a property’s value. Today, owner-occupiers can borrow up to 95%. 3. Higher earning capacity and more employment opportunities The internet has made it very easy to connect with people around the world. This means people can explore a lot more job opportunities. In fact, given the increased acceptance of working from home, it is not even necessary for you to live in the same country as your employer. Whilst these advancements might make the job markets more competitive, for some occupations it opens (literally) a whole world of opportunities. Therefore, first-time property buyers can proactively explore many opportunities to increase their income, thereby increasing their borrowing capacity and purchasing power. In addition, incomes have increased in real terms over the past few decades, especially for many professional white-collar occupations. There are some young people earning 2 to 3 times more than what was possible in their occupation decades ago. I discuss this further below. 4. Family guarantees & the bank of mum and dad The biggest impediment that delays first-home buyers getting into the market is saving enough for a deposit. First homeowners need a minimum deposit of at least 12% of a property’s purchase price (a 5% deposit plus 7% for costs including stamp duty and legal fees). That can take a long time to save. The most effective way to alleviate a lack of deposit is to get help from family. This might come in the form of providing a family guarantee. Alternatively, parents might prefer to provide their child with a gift or a loan. Most baby boomers have benefited greatly from higher property prices over the past few decades and are in a good position to help their children. 5. Cash flow budgeting/management tools It is critical that young people establish good cash flow management practices as soon as they enter the workforce, as these habits tend to stick with you over your lifetime. Establishing a strong savings pattern will serve two purposes. ● Firstly, it will help a prospective home buyer save a larger deposit, sooner. ● Secondly, it will demonstrate (to themselves and a bank) that they have the necessary surplus cash flow to service a loan. There is a huge array of tools available to people today to help them improve their cash flow management. 6. Ability to invest outside of your domicile location. The internet has made buying a property outside your domicile location a lot easier. For example, if you live in a regional town, it probably makes financial sense to invest somewhere else. A lot more equity in dollar terms It is relatively easy to accumulate over $1 million in equity in a property if you (1) buy well and (2) hold it for a couple of decades. Of course, this is a function of borrowing more i.e., property costs a lot more today than it did decades ago. But if you can afford a higher loan and you hold a property for the long term, the wealth effect can be substantial. One downside to this is that borrowing more means that you either must generate substantial income to be able to repay the loan or downsize the property at some stage to reduce/repay debt. Do all these positives offset higher prices? The average median house price in Melbourne and Sydney in 1980 was almost $53,000. Adjusting for inflation, this equates to $268,000 in today’s dollars. The average median house price in Melbourne and Sydney has increased to $1.2 million (Sept 2022). Therefore, house prices have increased 4.5 times in real terms since 1980. Income plus higher borrowing capacity Borrowing capacity has more than doubled since 1980 and professional salaries have risen by more than 30%. This means buying power has increased by a factor of 3 to 3.5 times over the past four decades. It can be more difficult today It can be more challenging to be a first-time buyer today. But a lot of the advancements over the past few decades have gone a long way toward mitigating the impact of higher prices (or, more correctly, driving prices higher). Most importantly, it is easier to make the right decision today. Mistakes can be very costly. If I knew what I know today before I purchased my first home 25 years ago, the financial outcomes would have been a lot different. This knowledge allows younger people to make a lot of money from property if they have the motivation and desire to do so and they are prepared to work hard and sacrifice. Links and Resources: – Stuart’s Book – Get the team at to help build your personal Some of our favourite quotes from the show: “I think one of the other factors that have changed over time is there are more people to get advice from, which is good in some ways, but it’s also hard to work out who you should take advice from.” – “There are a number of state government and federal government initiatives that are helping first home buyers get into the market.” – “A lot of people are rentvesting now. They realize that they can’t afford to buy where they want to live, so they rent where they want to live and buy in another state.” – 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. /episode/index/show/michaelyardneypodcast/id/29106493

The Game Changer: The Crucial Shifts for Prosperity in this New Year - with Jarrad Mahon 01/19/2024

Do you understand the 5 levels of investing? | Summer Series 01/17/2024

Do you understand the 5 levels of investing? | Summer Series In today’s show, I want to discuss with you the five levels of investing, a framework that I have created to help you understand where you are on your journey and to help you make sure you reach the top level as a successful investor. Then I’m going to share some interesting information with you about the tsunami of wealth Baby Boomers are expected to leave their children. Do you understand the Five Levels of Investing? If you want to become a successful property investor, you really need to understand the five levels of investing. I’ve created a model to explain the progression most investors take in their path to developing financial freedom. Level 0 – The Spender Level 0 are really not investors – they tend to be spenders and borrowers and as a result, end up with a high level of debt. A large part of our adult population falls into this category and they will never become wealthy unless they do something radically different. Level 1 – The Saver Most people who are not spenders will generally be what I call savers. Their main investment is their home, which they aim to pay off over time. Sometimes they save a little, squirreling away a few dollars of what’s left over after paying tax but in general, they save to consume, not to invest. They will get the most leverage by investing in themselves and getting a quality financial education and beginning to build a network of peers whom they can make the journey with. Level 2 – The Passive Investor Level 2 investors have become aware of the need to invest. They realize their superannuation won’t get them through retirement, so they learn about investment and accumulate assets. While they are generally intelligent people, they are still what I would call financially illiterate – they don’t really understand the rules of money. They must unlearn the flawed, incorrect, and misguided lessons they have learned about money and wealth from unqualified teachers. Level 3 –The Active Investor Level 3 investors realize that they must take responsibility for their financial future and become actively involved in their investment decisions. They become financially literate by building a knowledge base of investment strategies and techniques. Level 3 investors usually leverage the time and expertise of a network of industry professionals as they realize that they can’t do it all themselves. They also upgrade their network of advisors and peers, often joining a Mastermind group of like-minded people. Level 4 – The Professional Investor A very small group of investors move to the top rung of the ladder and become a Level 4 “professional” investor who has built and now manages a true investment business. A Level 4 investors’ property investment business has a substantial asset base that generates sufficient recurring passive income to pay for their lifestyle costs. They keep growing their investment portfolio whether or not they work in a real job. These professional investors don’t hand control of their investments over to others; they retain control whilst employing a proficient team: accountants, finance brokers, property managers, solicitors, and property strategists who have great systems that achieve repeated and consistent results, which are reliable and predictable. This gives Level 4 investors the freedom to choose whether they get up in the morning and go to work or not. Asset Growth first, then income stage It’s important to understand that the first stage in becoming financially free is to educate yourself; the next stage is that of asset accumulation – your job as a Level 3 investor is to build a sufficiently large asset base to fuel your “cash machine”. Then, only when you have grown a substantial asset base, do you transition into the cash flow (income) stage of your life as a level 4 investor. What is your Level of Wealth? Now it’s time for some home truths. How far up the Wealth Pyramid are you? Where do you currently sit in this hierarchy of investors? Everyone starts at the bottom – at Level 0 – but not everyone makes it to Level 4. In fact, few do. But you can once you understand why the rich keep getting richer. What I want you to understand is that the “active” income you make (the pay packet you work for every day) has nothing to do with what level of investor you are and in fact is one of the worst predictors of wealth. One great thing about freedom is the freedom to choose to live the life you want to live. Links and Resources: Get the team at to help build your personal Get a heap of eBooks and reports here: - Some of our favorite quotes from the show: “Savers tend to be afraid of financial matters. They’re generally unwilling to take risks.” – “You’ve got to go through the various stages to become financially independent.” – “Continue to work more on yourself than you do on your job so you become more valuable to your employer, which will help you earn more and also help you as an investor.” – 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. /episode/index/show/michaelyardneypodcast/id/29106468

Do you understand the 5 levels of investing? | Summer Series 01/17/2024

The Michael Yardney Podcast | Property Investment, Success & Money

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