[Podcast] Sydney Ghost Tower warnings | Busting finance myths | 12 Things more important than money

[Podcast] Sydney Ghost Tower warnings | Busting finance myths | 12 Things more important than money

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Our property markets are changing in front of our eyes, but a couple of things are changing that you may not be aware of. 

One of those things is the ghost towers in Sydney.My Podcast 112 Ghost Towers In Sydney V3

What’s a ghost tower?

You’ll find out in this episode.

It may not be what you expect. 

I’m also going to have a chat with Andrew Mirams about the changing finance markets and bust some myths about finance. 

In my mindset moment, we’ll talk about 12 things that are more important than money.

Listen in and by the end of the show, you’ll be a more informed businessperson, investor, or entrepreneur. 

Sydney Ghost Tower warnings  

The ghost towers that are springing up across Sydney aren’t haunted buildings, they’re empty apartment buildings. 

By the end of this year, around 54,000 new apartments will have flooded the Sydney market in just two years.

This has led to an oversupply of apartments for sale or for rent. Sydney

Of course, this has occurred at a time when first-time buyer incentives have worked, with one in four people in the Sydney property market currently buying their first homes.

It just hasn’t been enough to soak up the extra apartments, though, and ghost towers are on the rise in Sydney. 

These vacancies have created a tenant’s market, giving tenants the upper hand in lease negotiations.

Landlords and property owners need to keep their rents the same when the lease expires, and may even need to drop their rents when their property become vacant in order to find new tenants.  

Metropole’s Sydney vacancy rates are at about half the general market industry average, and they’re currently sitting at around 2%.

A large factor in this is the type of properties that we bought for our clients over the years – established apartments in small blocks that are close to amenities, that are still in strong demand and that have some uniqueness to them.

Those apartments are holding their values well and they’re leasing more quickly. 

The problem is we’re building too many of the wrong type of apartments, and there are too many of the wrong types for sale or lease.

Currently, the apartment market is being artificially propped up by developers manufacturing scarcity by holding onto their stock.

They’re not releasing a lot of their vacant apartments on the market because the market is saturated.

At the same time, many investors are not putting their properties on the market for lease.

They’re keeping them in brand-new condition and waiting for better times. 

My Podcast 112 Ghost Towers In Sydney V3

Developers built high-rise apartments aimed at foreign investors and a new generation of local investors who really didn’t understand what made a good investment.

This has led to high vacancy rates. Investors are going to lose out not only because they’re not getting their rent, but because they’re unlikely to see an increase in the value of their properties for at least a decade.

Those who wish to sell or have to sell are going to have trouble finding buyers. 

Established apartments, the ones that used to be called flats, are outperforming new apartments.

They’re what we call investment grade apartments because they appeal to a wider range of more affluent owner-occupiers, not just investors. 

They’re located in the right places, a short walking distance to lifestyle amenities. They have street appeal and good views, they offer security, and they usually have the ability to add value. And they have a high land-to-asset ratio, which is very different to the big buildings. 

The bottom line is that buying an investment-grade property is all about following a proven blueprint laid out by successful investors. It surprises me that people are still talking about buying off-the-plan apartments. Your best move is to avoid them. 

You’re more likely to increase your chance of financial success in the future and reduce your chance of getting caught out as the property market moves to the next cycle by buying the right property in the right location. Don’t worry about the timing. This is one of the best countercyclical buying opportunities I’ve seen in many decades. 

Busting finance myths  

Andrew Mirams

  • It doesn’t matter how long you’ve been with a bank, you still have to meet the current assessment criteria. Don’t assume that your bank will take care of you out of loyalty.
  • Things change with the credit cycles, and just because you got money in the past doesn’t mean that you’ll be able to do it again. You may not qualify, or you may need to meet new criteria.
  • Your credit cards and credit limits matter. Whether you use it or not, you could spend up to that limit.  And at any time your circumstances could change. So, it does matter and you do have to disclose credit cards and limits
  • If you’re adding a higher interest rate and a lower term, that has significant impacts on your borrowing capacity.
  • We’ve hit the bottom of our credit squeeze. We want a balanced market. That will have a positive effect on the ability to borrow.
  • Having a finance strategist on your side makes a big difference because the banks really aren’t on your side.

12 Things more important than money 

  • Put your health and wellness above everything elseMoney House
  • Take the time to do the things you love
  • Stop taking life so seriously
  • Always say what you need to say
  • Open up your mind to possibilities
  • Follow your own path
  • Stop living in the past
  • Accept the things you can change
  • Practice mindful living
  • Stop chasing money, fame, and possession
  • Always practice gratitude
  • Pay attention to all the sources of love in your life

Links and Resources: 

Michael Yardney

Metropole Property Strategists

Metropole’s Strategic Property Plan – to help both beginning and experienced investors

Andrew Mirams – Intuitive Finance 

Some of our favourite quotes from the show: 

“It surprises me that people are still emailing me, leaving comments on my podcast, leaving comments on my Property Update blog talking about buying off-the-plan apartments.” – Michael Yardney 

“When you get to know me, you’ll realize I believe true wealth is what you’re left with when they take away all your money.” – Michael Yardney 

“Appreciate what you’ve got. Be grateful for what you’ve got.” – Michael Yardney 


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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.

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