[Podcast] The Property Investment Puzzle Solved with John Lindeman

In today’s show, my guest, property researcher John Lindeman, is going to help you solve the property investment puzzle.

Clearly, in today’s more uncertain environment, we know that some locations are best avoided, while others still deliver good capital growth or better rental returns.

As a property investor, you need to understand which suburbs are going to deliver what you’re looking for at your stage of the investment journey.

The problem is, the housing markets are like a huge jigsaw puzzle, with more than 10 million properties spread over 15,000 suburbs.

It seems almost impossible with so many suburbs and so many properties – and that may be true since most investors don’t end up with the portfolio they want.

So in today’s episode, John Lindeman will divide all of the suburbs into four different groups. Once you understand which group the suburb you’re looking at falls into, you’ll understand whether it’s right for you or not.

That, together with the other things I’ll discuss with John today will give you more results and clarity in this uncertain time.

Then, I’m going to share with you some money lessons to teach your children. Don’t worry if you haven’t got children – these lessons are useful for you as well.

4 Categories of Suburbs

 Sleepers – the majority of the suburbs. They create the median performance in the market

Long Shots – speculative investment locations. These suburbs may have new infrastructure projects or other factors that could make them more profitable. They could pay off well or they could end up not growing well at all.

Cash Cows – areas with high yields but limited growth. They can get you cash flow but are unlikely to give you growth.

Shooting Stars – these are the suburbs that have it all, strong growth and cash flow. They’re the hardest to find, but they’re what investors should be looking for.

To determine which category a suburb falls into, John looked into the different types of households in different areas. Lots of renters indicate cash cows, for example. Infrastructure projects, what the banks are doing, and whether they’re lending can also tell you what type of suburb you’re looking at.

Money Lessons to Teach Your Children

Today’s debt equals tomorrow’s slavery: Your children need to know is that today’s debt is robbing them of tomorrow’s earnings, because they’re sacrificing money they don’t yet have.

He who dies with the most toys isn’t the victor: Possessions don’t make for a rich life, it’s the experiences and people – the things that money can’t buy – that make you truly wealthy.

Take responsibility, and that will make you the master of your own destiny: The decisions that you make today are what will decide where you are tomorrow.

The value of patience and waiting: Understand the difference between wants and needs and recognize that all the money you spend on those material items you just ‘had to have’ today, is less that you’ll have to fund your retirement with tomorrow.

Luck is made through hard work: Truly successful people do the hard yards to reach the pinnacle of their chosen field or endeavor.

You don’t need millions to achieve financial freedom: Financial freedom is not dependent on money itself, but on your relationship to it and the level of personal responsibility and fiscal discipline you’re prepared to exercise throughout life.

Spend less than you earn and invest the rest: Aim to invest at least 10 percent of your earnings and the power of compounding will take care of the rest.

Youth won’t last forever, so use it wisely: Start saving and investing early in life and you’re likely to secure your financial future.

Links and Resources:

Michael Yardney

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John Lindeman – Lindeman Reports

Why not get John Lindeman’s The Property Investment Puzzle Solved

Some of our favourite quotes from the show:

“This is not a social commentary, but it just seems to be a fact to me that the haves and have-nots are separating more and the current crisis that we’re going through has shown that up even more than normal.” – Michael Yardney

“Really demographics is going to be one of the biggest factors of what makes some areas do better than others in the long term.” – Michael Yardney

“Fact is, there’s no such thing as rich victims.” – Michael Yardney

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