Oct 9, 2017
In today’s show I'm going to
talk about which properties to avoid if you want to be a successful
While it’s important to
understand what properties make good investments, it’s equally
important to understand which properties you should not
I’m also going to share a number
of Wealth Accelerators the rich use to become richer in my mindset
moment. These are things that you may not have thought of, but are
important for property investing, life and success.
And as I answer a
listener’s question “Is possible to buy 10 properties
in 10 years?” I’ll share my thoughts on property
Know Which Properties to Avoid:
- Properties you shouldn’t buy are properties
that banks don’t like and on which they’ll lend a loan-to-value
the banks are wary of a property see it as a warning
- Services Apartments leave you dependent on one
particular operator and they have a limited resale
- Department of Defense Housing has a long lease
and no ongoing maintenance, but they have expensive property
management and other fees. And they’re not located in investment
units, studio apartments and student accommodations - an apartment
needs a flexible floor plan with at least 40 square meters and
preferably 50 sq meters.
the plan large apartment developments - they are in
locations or even the worst part of a good street.
- Properties with no or limited
- Apartments in suboptimal locations.
main roads and secondary locations.
- Rental guarantees are there because that is the
only way the seller can find a buyer.
- Holiday locations. It’s better to build your
asset base in sound investment grade locations before buying a
- Mining towns – enough said.
Mindset Message: Wealth
- Leveraging and using other people’s money in a
other people’s time.
- Understanding how to legally use the tax laws
to your benefit.
the right ownership structures - own nothing in your own
- Having a sound network and building a great
team around you.
- Having mentors and belonging to mastermind
- Having a wealthy mindset. Your reality is what
you think is real. Your perception is your reality.
- Owning the right assets.
Buying 10 Properties in 10 Years
doesn’t matter how many properties you own – it’s the size of your
asset base and how hard your money works for you.
focus on the number of properties - focus on the size of your asset
- Accumulation stage - build a portfolio of
properties that outperform the averages
- Lowering your loan-to-value ratio.
of your cash machine
- Understand the 3 phases of wealth
Links and resources:
Favourite Quotes from this episode:
“I often see investors exhibit
confirmation bias - this is where people just want
confirmation of the decision they have already made.” Michael
“Investors buy with their
calculators. I like to sell to owner/operators who buy with their
hearts.” Michael Yardney
“Properties need to be liquid.
You need to be able to resale or refinance. ” Michael
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