7 tips to building wealth in the current economic climate

We live in an interesting world don’t we? Particularly if you’re an investor.

Every time the world’s economic woes seem to have sorted themselves out, or we think Australia’s economy is on the move again or we feel Australia’s property markets seem to be steaming along nicely, a new set of challenges pop up for us as investors.

Some of them come from overseas – things like trade wars, terrorism and financial woes.world globe puzzle coins economy

And some are new problems – back home.

Things like concerns about what the future holds for Australia’s economy, talk of impending recession, unemployment, banks’ tighter lending criteria and our property markets gyrations.

All this means is there is a heightened level of uncertainty about what the future holds.

After 2 years of falling property values around Australia, it looks like our markets are bottoming out – but that doesn’t mean there’s a property boom around the corner.

There’s the likelihood of uncertainty ahead for some time yet, so I’d like to share 7 tips for building wealth in the current “interesting” economic times.

You see…, in my experience, times of economic change always create opportunities.

So what should an investor do?

I’ll explain at the end of this blog, but first some tips…

1. Risk comes from not knowing what you’re doing, so pay the price to learn what you’re doing!

Sounds obvious I know, but many investors commit hundreds of thousands of dollars to buy a property yet have gained their property investment knowledge from attending a one day seminar or reading a book.

The first step for most investors should be to invest in themselves.

Invest in their knowledge. Get a mentor.

But be careful who you learn from.

Just like in previous property cycles, currently there’s a swag of new property gurus willing to take your money to teach you their “new found” knowledge.

Instead find a teacher who has achieved what you want to achieve, has invested through a number of cycles and has kept their wealth.

I guess what I’m saying is it is better to learn from someone else’s mistakes rather than your own.

If your property investment mentor hasn’t had some challenges and failures along the way, they probably haven’t tried hard enough.

By the way…you can learn advanced property investment techniques (including how to get started in property renovations and development) from the best faculty of mentors I could put together at this year’s “Property Development and Renovation Workshop in October.

Click here to learn more

2. Adhere to a proven strategy

Most property investors don’t have a plan or a proven strategy to adhere to. chess-game-leader-investment-strategy-win-success-negotiate-300x235

In fact they spend more time planning where they’re going to holiday than they do planning their financial future.

If you don’t have an investment strategy to keep you focused, how can you hope to develop financial independence?

Adhering to a proven investment system will give you more predictable results, and will help you make more consistent and less emotional decisions.

Let’s face it…it’s too easy to get distracted by all the “opportunities” that keep cropping up.

Unfortunately many of these supposed opportunities don’t work out as expected.

Look at many of the investors who bought off the plan or in the next “hot spot” or in mining towns, only to see the value of their properties under perform.

3. If you’re the smartest person in your team, you’re in trouble.

Successful investors surround themselves with a good team.   mind

This may consist of a property accountant, a proficient finance broker, a lawyer and a property strategist.

However, you must become your own most trusted investment advisor—no one can do it all for you.

Too many investors make the monumental mistake of thinking that success is a matter of choosing the right investment advisor to handle their wealth.

It costs them dearly!

No one—no one—will be able to manage your wealth like you can.

Yes, you need good advisors, but you need to have the sophistication to filter and use the best of your advisors.

This means you’ve got to invest the time, energy and money to master the skill of managing your own net worth.

If you are serious about taking your property investing to the next level want to learn the fundamentals of property investment, renovations and development from a group of “real world” experts then please join me for 2 days in October at my “Property Development and Renovation Workshop  

Click here to find out all about it including the 9 bonuses, my money back guarantee and grab one of the early bird seats before they go.

4. Have Financial Buffers in Place

Smart investors don’t only buy properties; they buy time to help them ride through the ups and downs of the property cycle. recession australia note money economy squeeze tighten save saving budget cut

After all…one thing that is certain about the times ahead is that there will be uncertainty.

Over the next few years we’ll have some good times and some bad.

Some further periods of low interest rates and then they’ll rise (possibly considerably).

We’ll have some boom times and we’ll probably have another recession one day.

Savvy investors will protect themselves by having financial buffers in place to see themselves through the difficult times.

5. Sometimes it’s best to do nothing.

A great quote from Warren Buffett is:

 “The trick is, when there is nothing to do – do nothing.”

Yet many investors get itchy feet and want to do more, put another deal together or buy another property.

There are stages in the property cycle and times in your investment journey when it is best to sit back and wait for the right opportunities because wealth is the transfer of money from the impatient to the patient.

6. Become an expert

Successful investors specialise.

That’s how they become successful.

They find something they are good at and do it over and over again, rather than moving on to the “next shiny toy”.

Do you know a specific area and have a network of contacts that gives you information advantages? expert leader

Of course if you are investing in publicly traded securities you have to be wary of trading on “insider information”, that is information that is not publicly available.

Which is one of the reasons I like investing in property; since not only do I get paid for my “insider information”, but it is totally ethical and legal to trade on this privileged information!

Take the example of Bruce F from country Victoria.

He’s a ski instructor who attended my Property Development and Renovation Workshop a number of years ago.

A few years later he was featured in Australian Property Investor Magazine explaining how he made over $250,000 from his first property development – a two townhouse project in Bentleigh East.

What are your advantages?

What contacts, expertise, and experience do you have that you can leverage?

If you want to upgrade your knowledge of property investment or learn the fundamentals of property renovations or development, then you must join us at this year’s Property Development and Renovation Workshop.

Click here for all the details, including the 9 bonuses and my money back guarantee.

Then reserve one of the early bird spots now.

7. Treat your property investments like a business

36308275 - businessman thinking on consulting scheme on a white background

Investing is a serious business and if done correctly can, over time, replace your personal exertion income.

I’ve seen some property investors, those who treat their investments like a business, become very, very rich by growing a multi-million dollar investment property portfolio.

They do this understanding “the system” and getting the right type of finance, setting up the correct ownership and asset protection structures and knowing how to legally use the taxation system to their advantage.

They also hold themselves accountable for their own success.

Here’s a bonus tip…

If history repeats itself, and it most likely will, most people who get involved in property investment will not become financially independent.

Many will buy the wrong property or at the wrong time or in the wrong location.

Even as the property cycle moves into the next phase, most properties will not be investment grade

However if you have a system, a great team of advisors, your finances organised and the right knowledge, now could be a great opportunity to buy good properties that will appreciate in value over the long term.

In fact, now is the best time to buy counter cyclically in a decade or more.

You only get a chance to buy Sydney property 15% below what it used to cost, once or twice in your lifetime!

You only get a chance to buy Melbourne property 10% below what it used to cost, once or twice in your lifetime!

So I hope you put these 7 tips to great use in your financial life.

And I would really love to see you at my 2019 Property Development and Renovation Workshop .

Property Development & Renovations Workshop

Click here to check out the top line up of Australian property experts and find out more about the curriculum.

Please give yourself the chance to assess this opportunity properly – it will take about 10 minutes to read all the information.

This is likely to be the most important year for you to attend.

While we can’t predict the future, we have lined up Australia’s leading experts to help you formulate a plan to protect your position and exploit the opportunities ahead.

When you come you will have the opportunity to spend 2 days with:

  • A group of “hands on property developers” with currently involved in 40 residential development projects backed by a combined 70 years of “real word” experience.team work help puzzle group peer team
  • A serious property renovator who has completed over 200 renos in the last few years. I don’t know anyone else who can claim that!
  • A leading property tax expert – who will show you how to legally reduce your tax and set up the correct structures.
  • A top finance strategist – to show you how to beat the bank’s at their game.
  • A plethora of property experts, some who specialize in property renovations and development.

The intimate class room format of this workshop will give you plenty of time to ask your own personal questions of our faculty of speakers.

Then use the online booking form here to reserve your place or call Liz Rudenko at our Melbourne office on 03 9591 8888 to discuss this further.

It’s up to you now – I look forward to meeting you in Melbourne and being part of this exciting workshop.


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Michael Yardney


Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au

'7 tips to building wealth in the current economic climate' have 6 comments


    July 13, 2019 Lisa Margaret

    I read your article about the top Brisbane suburbs to invest in based on the 3 rings more than 12km outer suburbs, within 12 km and within 5km and have been basing my searches on that over the past day or so since reading it, only to find in this article you say that buying in Sydney at below 15% comes around once or twice in a lifetime so perhaps I’m looking in the wrong place. I am from Sydney originally and was looking to buy there until I read up on Brisbane so now I’m unsure where to focus my efforts in, brisbane or sydney. Perhaps if you can write an article listing the most desirable Sydney suburbs grouped into the magic ring and /or the price bracket as you did with the brisbane suburbs, it might be very helpful as I am concerned with sydney being oversaturated with new builds in some suburbs which might look like a good idea but won’t be good investments long term. Bearing in mind this is my first home purchase so am not only looking at it as a great long term investment to grown my property portfolio but want to find my first property so that I can maximise the govt grants and savings for first home buyers and new builds presently. If you can offer some of your pearls of wisdom I’d be most grateful. Love your blogs. I’ve learnt so much already in the past few days since finding you.


      Michael Yardney

      July 13, 2019 Michael Yardney

      Lisa – there are so many options aren’t there?
      And if you’re from Sydney you can do all the research you like – you won’t ever develop the perspective needed to select an investment grade property.
      One the things I hate about lists of suburbs is they give the wrong impression – Most properties in any given suburb are not investment-grade and then you’ll get it wrong!

      Why try doing it on your own? Can you really afford to get it wrong? Why not get my team at Metropole to help you– Remember we have no properties for sale… but access to every property on the market – including Sydney and Brisbane.

      We will help you make the right decision– why not have a chat with my team and let us help you? Just click here and we will be in contact



    August 2, 2017 Noel caccetta

    Hi Michael
    I haven’t posted of late, i agree with your points of having a buffer and cash funds, available to ride out this uncertain climate.
    In my view with my investments, i make a point to allow for 1 to 2% rate increase.
    Further to this, i’ve invested in good regional areas where at this present time, there is a slightly high vacancy rate in tenancy, but i’ve allowed for these situations.



    August 2, 2017 Jeff

    I click on the links via my iPad and all I get is blank pages ????????


      Michael Yardney

      August 2, 2017 Michael Yardney

      Jeff – sorry I don’t know what’s wrong – I’ve just checked on 2 iPads and no problems – are you looking for : https://www.realestateworkshop.com.au/


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