How property development helped create my wealth
Jan 8, 2018
Are you interested in getting involved in property renovations or development?
In today's show I’m sharing an interview where Justin Gehde and I talk about how I got started in property renovations and development.
This is part of the summer series of my show, where, while I’m on vacation, I pull out some of my favourite past podcasts not previously shared on this show.
So today there are some great hints for you because I discuss many of the lessons I learned and some of the things that I got wrong along the way.
How Michael Got Started With Property Development
- Michael bought his first investment property in the 1970s. He paid (a half share of) $18,000 for it and was got $12 a week rent.
- His second property needed a renovation. He got involved in development in the 1980s. He had good partners and mentors that helped him until the recession hit.
- Then he started helping others in the late 1990s helping people with property development management and doing development for clients.
- Michael is still very actively involved in property development. He enjoys creativity and finding solutions for problems.
- He takes pride in his large developments that have changed the face of some suburbs.
- Michael thinks property development is the best way to use money and buy assets cheaply. He doesn’t flip, instead he renovates and holds on for the long term.
- In the 1980s Michael was very brave and maybe a little stupid, but he took some big risks and the rising market got him through
- He has learned from mentors and he has seen partners go bankrupt and he is a much more careful investor.
- A common problem Michael encounters with clients is they have unrealistic expectations.
- His advice is to start small do the renovation and then move up.
- The importance of finding investment grade properties in suburbs that outperform the averages and where the jobs are and where people have more disposable income.
- How today Michael conducts the orchestra and still has fun at work and undertaking property development.
- Michael still enjoys the marketing, research, recording the podcast, dealing with the media, and strategic actions.
- Michael and his property development management business became experts in certain municipalities, so they know what does and doesn’t work.
- How experience makes a difference in property developments and creating the type of property that tenants want and what the end product should be.
- Location, owner occupier appeal, demand for a wide demographic of people who want to rent or buy there. Investment grade property.
- If starting over again, Michael would educate himself more and learn from people who have already done what he wants to do.
- Rather than flipping, property developers should be adding value, refinancing and keeping their properties. This way they are much more likely to become wealthy.
Links and resources:
- Michael Yardney
- Metropole
- Metropole’s property development services
- Rich Habits Poor Habits
- Property Update App
- Property Developer Podcast
Our favourite show quotes:
“Property investment and development is a game of finance and having the right cash flow.” Michael Yardney
“You have to have money set aside for a rainy day because the finance markets can turn very quickly.” Michael Yardney
“I’m actually having fun sitting back a bit and enjoying the results.” Michael Yardney
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