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Michael Yardney Podcast

Insightful, educational and always interesting

Listen and learn from Michael Yardney, Australia’s most trusted property commentator and a group of experts as they discuss Property Investment, Success, Money and Finance to help you multiply your wealth.
While Michael is best known as a property expert, he is also Australia’s leading authority in the psychology of success and wealth creation. You’ll enjoy the way he challenges traditional finance advice with innovative ideas on real estate investing, personal finance and wealth creation. 
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Dec 11, 2017

How soon can you give up your day job if you invest in property?

The answer may not be what you really want to hear.

In today’s show I discuss this as well as explaining the three P’s of property price growth. Plus I highlight some interesting findings (at least I think they are) from the Census.

And in my mindset moment, I am going to talk about the importance of a growth mindset.

The 3P’s of Property Price Growth People, Price and Place

  1. People: Demographics and how many people there are and how they want to live. In fact household formation is the biggest factor
  2. Price : Affordability of property which is related to wages, interest rates and property prices
  3. Place: - supply and demand
  4. Every five years the census helps us understand the changing demographics.
  5. As a property investor, you need to understand what properties will be in strong demand in the future – and the Census gives us clues.
  6. The latest census revealed that we add about 1,037 people to Australia every day.
  7. Australia has a sparse population density, and people congregate in the capital cities.
  8. Our median age is 38. We are slowly getting older.
  9. We are a diverse nation - Australians were born in over 200 countries.
  10. Almost half of the population were either born in another country or had a parent born in another country.
  11. Most of our immigrants come from China and India.
  12. The census gives details to where people’s wages have grown.
  13. We pinpoint our research to find areas that will have growth.

Mindset Message: Why a growth mindset matters.

  1. A fixed mindset believes you can’t change your capabilities
  2. A growth mindset means you can move towards improving yourself.
  3. It all starts with your inner self. With your thoughts and feelings leading to your actions and results.
  4. In what areas of your life do you need to move from a fixed mindset to a growth mindset and what are you going to do about it?

How soon can I give up my day job as a property investor?

  1. It’s not easy to do this. Real estate investment is a slow game that takes 10 to 15 years of growth.
  2. You first have to build your asset base – and can do this by investing smartly in high growth properties.
  3. Then, slowly lower your loan-to-value ratios. But in the meantime you need to have a real job.
  4. Then use your asset base as a cash machine
  5. Residential real estate in Australia is a high growth, low yield investment.
  6. It doesn't matter how many properties you own. The question is how big is your asset base and how hard is your money going to work for you?
  7. To retire you’ll need a 3 -4  million dollars in assets and your own home.
  8. Cash flow will keep you in the game, but it won’t get you out of the rat race.
  9. House flipping doesn’t work in Australia because of stamp duty and tax rules.
  10. It can take 30 years to build a substantial property portfolio, because most investors get it wrong in the first 10 years. Then it takes two or three property cycles to build their asset base.

Links and resources:

Our favourite quotes from the show:

“Believing change is possible is one of the biggest tenets of personal development.” Michael Yardney

“A growth mindset makes change possible, but you still have to take action to achieve your goals and success.” Michael Yardney

“Your thoughts lead to your feelings. Your feelings lead to your actions. Your actions lead to your results.” Michael Yardney

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