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Podcast Episode 12: Q&A Day – Answers to your property investment questions | Predicting property prices | Investing on a budget | Why you should fail

In today’s Podcast I’m turning the show over to you as I answer some of your questions.

The first one is about how to predict property prices.

Wouldn’t that be nice to know? Questions-about-investment

We’re also going to talk about how to invest on a budget.

Everyone has a budget of some type.

Ahmad Imam is going to answer this question for us.

In my mindset moment, I explain why it’s important for you to fail.

But don’t be put off by this topic because the end will be worth it.

How to Predict Property Prices

  1. We can’t really predict property prices, but we can try to find properties that will outperform using the three Ps: people, purchasing power, and places. First time buyers and investors are 30307218_l2generally at the lower end of the market.  Middle markets are changeover buyers or people downgrading.
    • Upper end of the market are more prosperous buyers driven by the business cycle.
  2. It’s important to understand the different types of property buyers:
  3. Purchasing power has been high until recently. Now purchasing power will be driven by the ability to get finance.
  4. People move where there are jobs and higher salaries give them more purchasing power.

Mindset Message: Why you should fail.

  1. No matter how successful people are, they all make mistakes.
  2. The game is won by losers. If you don’t fail at something you aren’t doing enough.
  3. The trick is to keep trying and manage failure
  4. If you want to be successful, you will first have to fail.

Investing on a Budget with Ahmad Imam

  1. Affordability is at the top of everyone’s concern.  economy-property-market-grow-wealth-house-dream-first-home
  2. Your budget is set at the bank’s.
  3. Location is in your control and is critical. 80% of property performance is due to location. Don’t compromise on this
  4. Your property must be investment grade.
  5. Biggest mistake is to buy based on affordability.
  6. Land is important, but not all land is created equal.

Links and resources:

Favourite quotes from the show:

“Examine almost any shiny success and on the flip side you are going to find grimy failure.” Michael Yardney success invest

“The truth is success scares people.” Michael Yardney

“Property values are driven by the three Ps: people, purchasing power, and places.” Michael Yardney

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About

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 his opinions are regularly featured in the media. Visit Metropole.com.au


'Podcast Episode 12: Q&A Day – Answers to your property investment questions | Predicting property prices | Investing on a budget | Why you should fail' have 7 comments

  1. Avatar for Property Update

    October 24, 2017 @ 6:50 am Mark

    Hi Michael, love the shows you are in, been listening to you and others for ages and really like that you’ve now done one of your own.
    I often hear about large regional cities, what makes a regional city be classed as large?
    I live in the area of Albury Wodonga and don’t ever hear this area mentioned, does it not get classed as a large regional city. What’s your thought on this area, could you give a run down on the location as to whether it would make a good place to invest.
    Thanks
    Mark

    Reply

    • Avatar for Property Update

      October 24, 2017 @ 7:41 am Michael Yardney

      Thanks for the kind words Mark
      I has my own definition of what makes a regional town large – it has to have a big enough population to have it’s own television stations.
      Now this is not an economic definition, just a little rule of thumb I came up with many years ago.
      All the statistics show that the majority of new higher paying permanent jobs are being created in the cpaital cities – with the bulk of them being created in Melbourne and Sydney.
      There is minimal population growth in regional Australia and just becuase you live there is not a good reason to invest there.
      If you can only own 2 or 3 investment properties, why not make them the best 2 or 3 properties you can buy – the ones with the best long term growth prospects.
      Let’s be honest…if you didn’t live in Albury Wodonga, buying there would not even be on your radar – and it’s not on mine

      Reply

  2. Avatar for Property Update

    October 24, 2017 @ 5:22 pm Ho Ping

    Why you should fail. That is realistic. Thank you for the podcast. We purchased nine properties. Seven of them brand new, one of them just under four years old and our principal home. Therefore eight investment properties. Some of them are positive cash flow. The rest of them are positive gear. All of them have capital growth in the last four years except one. I was inexperience when I made the decision to purchase the property, it was our second investment property. I am the one who is interested in properties investment. My husband backs me up with our funds and support. He is fine with everything. I am the one who can only think about the only property that is not doing so well in the pro-folio while we are having incomes and capital gain. I am going to stop being a perfectionist.

    Reply

    • Avatar for Property Update

      October 24, 2017 @ 7:58 pm Michael Yardney

      Well Done Ho Ping! That’s not really failing – is it?

      Reply

  3. Avatar for Property Update

    October 24, 2017 @ 10:58 pm Ho Ping

    No Michael. However I felt bad at the time but I did learn from it and use the experience to help our other investments.

    Reply

  4. Avatar for Property Update

    October 29, 2017 @ 4:32 pm Karen Cormie

    Hi Michael – I really appreciate your podcast and emails each week. Both informative and inspirational. I wanted to ask you though how I enter the property market while being in a low income bracket. Is it ever a good idea to combine borrowing with a friend to purchase a fixer-uppa? We are contemplating doing that in an holiday area just outside of Sydney.

    Reply

    • Avatar for Property Update

      October 29, 2017 @ 8:09 pm Michael Yardney

      Karen yes it’s hard to get on the pro[sociallocker]perty ladder but congratulations for trying.
      The first step is to become financially fluent and spend less than you earn and save a deposit.
      I like the concept of buying with a friend as long as you have the same goals and get a Joint venture agreement signed. The problem is that a joint loan will stop you getting your next property as the banks assumes your whole joint borrowing as your liability, but only credits you with half the income.
      And be careful – I’d avoid holiday locations.
      I’ll answer this more fully on the podcast so please respond to this with your mailing address (it won’t be published) and I’ll send you a book as a way of saying thanks for the question

      Reply


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