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Stuart Wemyss

22 Podcast Episodes

Latest 24 Jul 2021 | Updated Daily

Weekly hand curated podcast episodes for learning

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How to Minimize Tax – Your Largest Expense, with Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

You’re guaranteed two things in life – death, and taxes. While taking care of your physical and mental health can lead to a longer, healthier life and stave of the death part, what can you do to legally minimize your tax? Since everyone wants to pay less come tax time, in today’s podcast I chat with independent financial advisor Stuart Wemyss about what options are available to you. Minimizing Your Tax Tax isn’t necessarily a bad thing. If you’re paying tax, it means that you are making money. But of course, there’s no need to pay any more than you legally have to. Minimize your risk Stick within the letter of the law, but explore legitimate ways to minimize tax liabilities Many more aggressive tax minimizing measures delay tax rather than permanently reduce it Implementing these strategies may create costs (tax advice fees and documentation) and complexities Sometimes, it’s better to keep things simple Minimize tax pre-retirement Personal exertion income earners have few avenues to minimize tax You can use negative gearing and/or contribute into super, but that’s about it Contribute to your super After 1 July 2021, individuals can contribute up to $27,500 per year into super and claim a tax deduction for this expense Borrow to invest Borrowing to invest (to generate capital growth) often makes good sense, especially if you are more than 10 years from retirement Minimize tax on investment returns If there are not many avenues to reduce the amount of tax you pay on your income, then at least make sure you don’t pay too much tax on your investment returns. Invest in assets that generate more capital growth than income Make sure the investments are owned in the most tax-effective way Minimize land tax Map out a plan and follow expert advice to minimize land tax as much as possible Consider capital gains tax Self-employment gives you more options Make sure that your business is structured correctly Stuart’s new podcast, The Holistic Accountant, is a good way to learn more about this You should aim to pay zero tax in retirement A couple can have up to $3.4 million invested in super, and not pay any tax If you plan well, it is a reasonable expectation to pay little to no tax in retirement If you can’t save tax, focus on investment returns If you earn money, it’s likely you will have to pay your fair share of tax. That’s life Cheating is never worth it The ATO is cracking down on dodgy deductions and the penalties can be up to double the tax plus interest Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: How to Minimize Tax – Your Largest Expense, with Stuart Wemyss Some of our favourite quotes from the show: “Tax isn’t necessarily a bad thing. No one likes paying it, but if you’re paying it, I guess it means you’re making money.” – Michael Yardney “If you’re going to own a property investment business, you should actually own the best assets you can in best locations you can, and land tax unfortunately is a cost of doing business.” – Michael Yardney “Those who invest in their abilities their entire lives, they become the beneficiaries of luck.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

42mins

14 Jun 2021

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Some home truths about this housing boom with Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

Perhaps it’s a reflection of how old I am, but as I keep seeing the stories in the media about rapidly rising house prices, I simply think: here we go again. There are already those out there telling us we are in the housing bubble that’s going to crash. Then there are others who are warning us how the Reserve Bank or APRA are going to interfere and slow things down. And then the banks that only 12 months ago forecast house prices would fall 10, 15 or 20 percent are now suggesting house prices could rise by 10, 15, or even 20 percent in this year alone in some areas. While these periods of rapid house price rise essentially come down to the forces of supply and demand, each sprinkled with varying quantities of irrational exuberance, the precise forces behind each of the housing booms I’ve invested in over the last almost 50 years are not the same. I remember just after I bought my first investment property early 1970s inflation boomed when the Whitlam Labour government came in. At that time interest rates were much higher than they are now. Inflation had the effect of reducing the real value of mortgages, but it was also a time of strong wage growth. Then I remember the great property boom of the late 1980s which was one of the factors that led to the recession we had to have in the early ’90s and particularly remember the boom in the early 2000s, when investor demand was a significant factor driving up house prices, in part because of the changes made to the capital gains tax regime at the time. Looking at the current housing boom, there are some very interesting features that contrast with previous cycles. The first is that population growth is currently very low, in fact, net immigration actually caused Australia’s total population to fall over the past 12 months. That’s very different from previous booms — particularly in the middle of the last decade — where strong immigration was an important driver of rising house prices. Another interesting difference is the relative absence of investors in the current housing market compared with owner-occupiers. This is reflected in the much stronger demand for standalone houses rather than apartments. In February this year investors only made up about 20% of all home loans while traditionally this is closer to 30%. And it’s not just local investors that are missing. There is also the absence of foreign investors. During the last boom Asian investors, particularly from China were an important force driving up property prices and buying many of the high-rise apartments being built in our CBD. They are nowhere to be seen this time around. So far, a significant factor of this property boom has been the presence of first homebuyers assisted by various federal and state government initiatives including the homebuilder program, the first home loan deposit scheme, and various deputy concessions. While our banks are keen to lend to First Home Buyers, I’ve heard that the Bank of Mum and Dad is now is the fifth largest lending institution in Australia. Here homeowning parents who sitting on significant equity in their property help their children get into the housing market either with gifts, loans or they assist by guaranteeing their loans. So how can you make the most of this property cycle? Is the Reserve Bank going to interfere and raise interest rates? Will APRA slow down lending as it has in the past? These are all questions I’m going to ask of my regular podcast guest, financial adviser Stuart Wemyss. Truths about the housing boom Our property markets have been surging this year with double-digit growth in sight for all our capital cities. And now that more Australians feel secure about our economy in general, and their jobs in particular, this will only place more impetus under our markets. And it’s clear that FOMO (fear of missing out) when homebuyers and investors are scared the market is running away from them is driving many decisions. Buyers feel they must get into the market and this is showing with even secondary properties selling well above their vendor’s expectations. Normally at the beginning of the property cycle, there is a flight to quality – people remember the type of properties that held their values well during the downturn and avoid secondary properties. But currently, I’m seeing some home buyers so worried the market is going to pass them by that they are compromising their selection criteria just to get into this market. Unfortunately, we’ve seen how you end up when the market eventually slows down, and it’s not always a pretty sight. So what’s ahead for the markets this year and how can you take advantage of our current property boom without getting burned? That’s the topic of my discussion today with independent financial adviser Stuart Wemyss. Will the RBA increase the cash rate? The lowest 40% of income earners have been affected by COVID-19 the most. An increase in interest rate would adversely affect low-income owners when they could least afford it. An increase in interest rates would be bad news for the federal and state government budget deficits. The federal government’s total borrowings attempt to reach $1 trillion meaning 1% of price interest rates would cost the government an additional $10 billion a year – not an attractive prospect. Will APRA introduce macroprudential controls? Chairman Wayne Buyers said APRA’s primary responsibility is financial stability, not soaring house prices, and it is not seeing activity right now that would compel it to intervene. However, more commentators are suggesting there will be a role for changes to potential lending standards. How might this be done? Increase interest rates for investor mortgages and leave owner-occupier rates unchanged (investor mortgage rates are already 0.4-0.8 percent higher than owner-occupier rates). Limit the maximum loan to value ratio (LVR) for investment loans. At the moment, investors can borrow up to 90 percent of a property’s value, meaning they only need a 10 percent deposit plus costs. The government could reduce these LVR limits, like the Reserve Bank of New Zealand did last month. Increase the benchmark interest rates for investors. A benchmark interest rate is used when a lender calculates your borrowing capacity. It provides a buffer to provide for future interest rate increases. The higher the benchmark interest rate, the lower your borrowing capacity. While a new round of macro-prudential policies is looking increasingly a matter of when, not if, as I see it, the catalyst for such a policy intervention is more likely to be based on a worsening in the quality of lending standards or increase in mortgage-related household debt rather than as a response to heat in the housing market. Tighter credit conditions would probably have an immediate dampening effect on housing market activity while continuing to let record-low interest rates support the ongoing economic recovery. It’s very likely that the government (through APRA) will tighten borrowings criteria for investors sometime over the next six to 18 months. Of course, this is dependent on property prices. If price rises are considered sustainable, borrowing rules do not need to change. For property investors, it is time to lock in access to as much capital as possible over the next six months. Depending on the type and location of your property, I would probably be inclined to wait for one to two months before getting your properties revalued. This will allow for some more comparable sales to occur. Then, around April or May, I would ask my mortgage broker to revalue my properties and lock in my borrowing capacity to 80 percent of those new valuations. The exact timing of this does depend on your circumstances. Notwithstanding the prospect of future lending rule changes (as discussed above), it is always a good idea to maximize your access to borrowings, even if you have no immediate plans. So, what should someone interested in getting into property be doing now. Lock in access to as much equity as possible over the next 6 months. Depending on the type and location of your properties, I would probably be inclined to wait for one to two months before getting your properties revalued. This will allow for some more comparable sales to occur. Then, around April or May, I would ask your mortgage broker to revalue your properties and lock in my borrowing capacity to 80% of those new valuations. The exact timing of this does depend on your circumstances. How important is timing the market? Ultimately the price you pay for a property is largely irrelevant. What is far more important (by a factor of 10) is the quality of the asset you buy. Property is a long-term investment. You should plan to hold it for many decades. So there’s no point getting anxious over a few months. Discretionary vendors will be encouraged by recent results. As such, we should expect the supply of properties on the market to increase. This may have a cooling effect on prices or at least temper price rises. We must remind ourselves that prices are able to move in both directions. One thing is almost for sure. Interest rates are likely to remain low for an extended period of time, and that’s an opportunity. Resources: Michael YardneyGet the team at Metropole to help build your personal Strategic Property Plan. Click here and have a chat with us Get your bonus ebooks and reports – www.PodcastBonus.com.au Join us at Wealth Retreat 2021 Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: Some home truths about this housing boom with Stuart Wemyss Some of our favorite quotes from the show: “It’s not just you and me who are going to have to pay more. The government’s borrowings would cost them more.” – Michael Yardney “I see property price growth slowing later this year. Not prices going down, but the growth slowing.” –Michael Yardney “I’ve come to realize that too many people worry about failing, about getting it wrong.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

42mins

10 May 2021

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How do you fund your retirement using a property portfolio in today’s financial environment, with Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

Why are you investing in property? Or why do you want to get involved in property investment? It’s not really for the properties, is it? For some people, it’s because they want to fund their retirement, while for others it’s that they want more choices in life – they don’t particularly want to retire, but they want to work when and how they want to work and because they want to go to work, not because they have to. However, the inconvenient truth is that despite over 2.1 million Australians investing in property, 92% of them never get past one or two properties in the portfolio, meaning they won’t be able to fund their retirement. So, is it really possible to live off your property portfolio in the current economic climate and in our more challenging finance environment? The answer is… the rules of finance have changed considerably and how one funds the longest holiday you’re ever going to have – your retirement – is very different from how you would have structured it many years ago. And that’s what we discuss today in my chat with financial advisor Stuart Wemyss. At the end of today’s podcast, you’ll have more clarity on how to successfully live off your property portfolio. And I’m sure you won’t be surprised if I tell you it’s not what most people would recommend. Funding your retirement from property investment More and more Australians are looking at property investment as a form of taking control of their financial futures. Yet some people seem to be questioning the ability to really fund a reasonable retirement through property investment. So, today I’m going to have a chat with Stuart Wemyss, to get an understanding of how to fund the longest holiday you’ll ever have – your retirement. Many years ago, I was introduced to the concept of living off the increasing equity of your properties, but that really isn’t possible in the current lending environment. In fact, it’s changed since the global financial crisis. So you’ll have to build an investment portfolio that will allow for a great retirements Stuart and I discuss The importance of building an asset base. How does one structure a portfolio? So many unknowns for the future Must account for taxes What about interest rates – will they remain low it is best to acquire a combination of investment assets i.e. some property, some shares (hopefully in super), and some cash by the time you reach retirement. It is not necessary to acquire these assets equally each year. People who insist on “property, property, property” or “shares, shares, shares” are probably biased. It’s OK to take a level of debt into retirement if you can comfortably service it. Borrowing to invest is typically a good wealth accumulation strategy as long as you do it prudently and adopt a proven methodology to select quality investments. If used wisely, debt can be a very effective tool. However, whilst your investment strategy will require you to get into debt, the strategy must also articulate how you will get out of debt (i.e. repay it). Links and Resources: Michael Yardney Metropole’s Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: How do you fund your retirement using a property portfolio in today’s financial environment, with Stuart Wemyss Some of our favourite quotes from the show: “We don’t know what the rules are going to be when you retire in the future.” – Michael Yardney “To get the results most of us are looking for, you need a plan. You need a strategic financial plan.” – Michael Yardney “Your wealth operating system is what connects your inner self, your thoughts and your feelings, with the outer world.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

32mins

12 Apr 2021

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Episode 18: How to Make Better Decisions with Stuart Wemyss

Perth Property Insider Podcast

A financial mistake can really set you back in your investing journey while the right decisions can compound to get you ahead safely and much faster.  I myself have been spending a lot of time thinking about how to make better overall investing decisions. So I’ve brought in my personal financial adviser, Stuart Wemyss, today to discuss some of the common mistakes and how to make better overall evidence-based decisions.  We cover offsetting a strategy, buying the right assets, evidence-based property selection, the common attributes of investment-grade property, and much more! Short circuit the process and learn from the experts by tuning in now. Episode Highlights: The fundamentals to investing are universal [01:35] Get an expert to help you [03:27] Decisions have a compounding effect on your outcome [04:59] Start by making a long-term strategy [08:50] Utilise the best of each asset class [12:01] Find out who can help you make the best decision [12:56] Practice delaying gratification [17:11] Stop chasing a number: It’s all about buying the right asset [19:12] Why some clients buy only 1-2 properties [21:01] Making the push for evidence-based property selection [24:23] Three common attributes of investment-grade property [25:53] Strong land value component [26:07] Scarcity in supply [27:34] Proven performance [28:07] Takeaways from Stuart’s book, Investopoly [31:21] It only takes a handful of really good decisions to reach your goals [33:50] Stop chasing popular trends for short-term gains [35:56] Resource Links: Join Jarrad Mahon’s Property Investor Update (https://www.investorsedge.com.au/join) For more info on our award-winning and highly rated Property Management services that give you guaranteed peace of mind (https://www.investorsedge.com.au/perth-property-management-specialists/) For more info on how our Property Sales services can ensure you get the best selling price while handling all the stress for you (https://www.investorsedge.com.au/selling-your-perth-property/) Get Jarrad’s strategic advice towards your property purchase and development plans (https://www.investorsedge.com.au/invest-in-perth-property/ ) Grab a copy of Stuart Wemyss’ book, Investopoly (http://investopoly.com.au/) ProSolutions Private Clients (https://www.prosolution.com.au/) About Our Guest: Stuart Wemyss is a financial adviser, tax agent, and mortgage broker. He founded ProSolution Private Clients, which provides commission-free financial planning, accounting/tax, insurance, and mortgage broking services. ProSolution is unique in that they have an equal amount of experience in investing in both property and shares. Stuart is also the author of the books, Rules of the Lending Game and Investopoly. Thank you for tuning in! If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Connect with Perth Property Insider: Subscribe on YouTube: https://www.youtube.com/channel/UCgT9-gB6RS69xSgc8J9KrOw Like us on Facebook: https://www.facebook.com/investorsedge See omnystudio.com/listener for privacy information.

39mins

7 Apr 2021

Most Popular

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What property data should I be paying attention to and what should I ignore? With Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

One of the most significant changes in the time I’ve been investing in property, and that’s close to five decades now, is the availability of data. When I first started investing in the 1970s there weren’t any blogs, podcasts, YouTube channels and the only way to get property data was to be part of the secret inner circle – which was then a men’s club of Real Estate agents – because the lag in publicly available data was often over a year. The estate agents were custodians of the data, because back then the Valuer-General would only publicly release property once a year. Over the last decade, there’s been an abundance of monthly data available to property investors and over the last year, most of the data houses have been providing weekly updates. But in our current fast-moving market sometimes even this is a little bit too slow. For property investors who need to make important financial decisions, the lagging available data can be an issue and the other significant challenge is understanding which data is important and which isn’t and that’s the topic of my chat today with financial adviser Stuart Wemyss. At the end of the show, you should have a much better understanding of what data you should be paying attention to and where to find it, and this should help better property investment decisions. Filtering Property Data It seems that currently every man, woman, and pet dog is upbeat about our property markets. Just look at the messages we are getting in the media. It seems that all the economists have now done an about-face and agree we’re in for strong property markets for the next few years, with some being comfortable using the word house price boom. In fact, they seem to be out doing each other to see who can come up with the most upbeat price increase forecasts. Six percent gains? How about eight percent? No, it will be double-digit growth. What about sixteen percent over the next two years! But looking back over the last few years, we know that most economists have had a very poor track record, and we know much of the information we read is not useful. So, today in my chat with Stuart Wemyss, we get an understanding of what information is relevant and what is not. The media tend to only run stories that they consider newsworthy. Newsworthy often means that the information is time-sensitive e.g. what happened yesterday or what will happen tomorrow. This short-term information does not help if you intend to own a property for many decades. So what information is relevant? Very little from the media. A good and bad property costs the same to hold. You will pay the same amount of interest with respect to the mortgages. And the income and expenses will be relatively similar. The biggest difference between a good and bad property is capital growth. That is, what will the property be worth in 10, 20, or 30 years? In this regard, when selecting a property, there are three fundamentals you must consider: Land value Scarcity Past performance There’s only a handful of important macros considerations Population growth Money supply Diversified employment opportunities Infrastructure Ignore the rest! Property investment is part art and part science, and that’s where investors who only base their decisions on data get it so wrong. I know there are a number of people out there currently saying that they research every market around Australia sitting at the computers all day. Unfortunately, what they are missing is the perspective – they have the same speed right but not the bit right – not the on the ground knowledge - you can’t get it by flying in & flying out and speaking to a few agents – perspective takes years to develop – it’s something you can’t buy. Some examples of when the data can lie to you Not enough data Not long enough time between transactions Too hard to ascertain its current value Our sales did not represent Fair market value You overpaid for the property when you purchased it Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: What property data should I be paying attention to and what should I ignore? with Stuart Wemyss Some of our favourite quotes from the show: “I think we’ve got to remember that the media’s job is not to educate you but to entertain you.” –Michael Yardney “Part of an investor’s job is to maximize their returns while minimizing their risk.” – Michael Yardney “The few who do succeed are able to do so when the pain that does come to them – they can endure it because they prepared for it.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

42mins

29 Mar 2021

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Property prices can’t keep rising at the same rate they used to; with Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

Property values can’t keep rising! It’s all a Ponzi scheme and is going to come crashing down around us! The only reason our property markets have survived COVID-19 is because of bank and government support. That’s some of the commentary you’ll find in the media and over the Internet at present and on the other hand you’ll find many experienced property commentators saying we’re at the beginning of a new property cycle, one where property values will rise considerably. Who is right? Can property values keep rising, and can they rise as much as they have over the last three or four decades? That’s the question Stuart Wemyss and I discuss today as we explain the various factors that created the significant property price growth over the last couple of decades. However, looking forward many of those growth drivers won’t be the same. So what’s ahead for property values? That’s what we going to discuss so welcome to today’s show. Will property values continue to rise? As we enter the beginning of a new property cycle some people are asking can property prices continue to rise at the same rate at which they have over the last three or four decades? In fact, some people asking can property values keep going up at all considering how expensive they are today? I know that’s a question that has been asked of Stuart Wemyss, an independent financial adviser and author because he’s written recently written a blog outlining his thoughts, so I look forward to hearing how he would answer these questions. Some of the topics Stuart and I discuss In Stuart’s blog he had a graphic showing what happened to house prices over the last five decades from 1970 to 2020. Now I know I bought my first investment property in the early 1970s, paying $18,000 and I got $12 a week rent and I was excited. $18,000 was a lot of money in those days when the family car was a Holden Kingswood and cost $2000; so I guess one of the first things we have to do when looking at house prices is see how they performed after inflation. Property has always been expensive. It seemed like a lot of money in the 70s because it was a lot of money in the 70s. You need to take a longer-term view to understand how property prices have occurred. But no, property prices can’t keep growing at the same level. Over the last 40 years, there has been population growth along with the rise of 2-income households. Some properties won’t increase in value, but others will and some will perform better than others. It’s important to look at real price growth, ignoring inflation. The bigger impact population growth has with investment-grade property is overall economic activity. Established money areas are liable to do better over the next 2 years or so. Borrowing capacity not likely to increase, interest rates not likely to decrease because they’re already low. You want a property that will appeal to someone whose income is rising faster than the general population People from the work from home movement will want to live where things are, not out in areas where there’s nothing around. Links and Resources: Stuart Wemyss’ blog mentioned in this show – Property prices cannot keep rising at the same rate Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan – click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Shownotes plus more here: Property prices can’t keep rising at the same rate they used to; with Stuart Wemyss Some of our favorite quotes from the show: “It’s real, after inflation, growth that’s important.” – Michael Yardney “There are more of us (Australians’s), but we’re also wealthier. We’re earning more.” – Michael Yardney “As always, demographics is going to be very important moving forward.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

38mins

3 Mar 2021

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The 8 Golden Rules for building wealth in this new property cycle – Part 2, With Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

Would you like to know where the property hotspots are going to be as Australia enters some semblance of normality in 2021? Or maybe you’d like to know exactly where property values are going to end up at the end of this year. Now I know that’s what a lot of the other podcasts are currently offering you, so I’m sorry if I’m going to disappoint you, but I’m not going to make any short-term predictions. You only have to look back 12 months to see how all those short-term forecasts worked out, or even further back to the beginning of 2019 and again see how incorrect those predictions were. On the other hand, it’s much easier to tell you what the value of well-located investment-grade properties will be in 10 years’ time.  But that’s not as sexy, is it? The problem is many investors take a short-term approach to real estate which is really a long-term investment. They try and make a quick profit such as buying cheaply, or looking for the next hotspot, which is a short-term approach, and then wonder what to do next; rather than taking the long-term approach of owning the best asset they can which will give them long-term compounding growth and in time produce substantial wealth. In today’s show we are going to continue on the discussion I started last week with Stuart Wemyss and work through his 8 fundamental rules for property investment. These will serve you much better than learning where the next hotspot is going to be because as you know, this year’s hotspot will become next year is a not-spot. When you understand these fundamentals and use them to formulate your investment decisions, you’ll be ahead of the game and be in that small group of investors who builds a multi-million-dollar property portfolio, rather than in that large group of 1.9 million Australian investors who never gets past their first or second property. If you haven’t heard last week’s show, please listen to that after you’ve heard this episode – the order in which you listen won’t matter - just go to The Michael Yardney Podcast on whichever player you use to listen to the podcast because the two shows are complimentary – there was just too much information to pack into one show. And while you are there, if you don’t already subscribe, please subscribe to this show so you keep up to date as we enter an interesting year ahead. Once you’ve listened to these two episodes, I believe you’ll be in a much better position to take advantage of the changing property market in 2021 as you understand Stuart Wemyss’s eight rules of property investment. The Golden Rules That We Discuss This Week: Golden Rule 5: Set your asset allocation to reduce risk and maximize return Understand that you can’t predict what’s going to happen in the short term. Invest in a combination of assets that diversify outcomes. Be realistic about what long-term returns are going to be. Golden Rule 6: Invest in the share market using low-cost passive investments Two types of approaches: active fund management and passive management. Golden Rule 7: Only invest in ‘investment-grade’ property Three characteristics of an investment-grade property: Strong land/value component Have scarcity in terms of location and in terms of architectural style or building type Proven performance Golden Rule 8: Protect your investments from expected and unexpected risks Plan for the worst and hope for the best. Make sure that you have the right insurance, including income protection insurance. You need to put a will together. You need access to several year’s worth of living expenses. A finance strategist can help you put the appropriate buffers in place. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Investopoly Shownotes plus more here: 8 Golden Rules for building wealth in this new property cycle – Part 2, With Stuart Wemyss Some of our favourite quotes from the show: “Property’s lumpy, so it’s not easy to buy a property every six months or every six years.” – Michael Yardney “Investing is meant to be boring, to give you the wherewithal to make the rest of your life fun.” – Michael Yardney “The first rule summarizes it all, also. Invest for the long-term. Understand the long-term rules. Don’t invest for the latest hotspot.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

50mins

15 Feb 2021

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The 8 Golden Rules for mastering the game of building wealth – Part 1 with Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

As we enter a new year, many of us will be focusing on the strange year we've had and trying to extract the lessons we've learned. Rather than do the same, in today’s episode of the Michael Yardney Podcast I’d like to remind you of some of the foundations of lifetime investment success with Stuart Wemyss. Now to be clear… this is very different to what you hear in the news, which basically focuses on short term investment trends.  One of the core tenants of my approach is that true lifetime investment success is goal-focused and planning-driven.  And the good news is by focusing on the long-term big picture trends it removes the burden of correctly guessing future short terms trends such as interest rates, inflation, hot spots, and the many other variables that the average analysts and many investors spend their days obsessing over. In a culture that will always be market-focused and performance-driven, my approach sees our clients at Metropole and also my personal investing acting on a financial plan, a customised strategic property plan that we build for our clients, rather than reacting to the vagaries of the investment markets. And that’s why I’m looking forward to my chat with Stuart Williams today because I know he takes a very similar approach. Four Investment Principles At Metropole our approach is built on an evidence-based foundation of four investment principles. Master these, and lifetime investment success will be available to you. The four inner principles are: Faith in the future There are so many doomsayers out there, and I regularly get trolled by them, particularly on YouTube. But based on history, I confidently believe in the ability of a capitalistic society to prosper on the back of our collective ingenuity. Patience Contrary to the financially illiterate, the strategic investor refuses to react inappropriately to disappointing events. That’s why they have a plan to follow, and they act on this plan rather than the short-term ups and downs of the investment markets. Discipline Similar to the principle of patience, discipline sees strategic investors continue to do the right things, even if the fruit of these decisions can't be seen in the short-term. Building a great team around you. Property investment is a process, not an event. In fact, property investment is a long-term process, and it takes up to 30 years to develop financial independence through residential real estate.  And all successful investors I know can you to educate themselves, so they become financially literate, but they’re very careful who is your bias they take, because they have learned most educators and so-called advisors have a vested interest They also surround themselves with professionals and mentors who they are prepared to pay for advice to ensure they maximise the investment returns, by having elastic advice in the areas of not only property but finance, tax, structuring legal matters and estate planning. These financially literate investors accept the guidance of their holistic wealth advisors and if they have sufficient disciple and allow time compounding and leverage to work its magic, their investment success is all but guaranteed. While simple, it's not easy. The 8 Golden Rules of Successful Investing - part 1 Golden Rule 1: focus on the long game Long term financial decisions promote exercising delayed gratification – patient investors are rewarded, impatient ones are not. The best question you can ask yourself is “what action can I take today that will result in me being a lot financially stronger in 10, 15 and 20 years?” Golden Rule 2: Know what you need and when you need it You need to set two important goals: how much income you need in retirement and when will you retire? Look at what you are spending today to extrapolate what you will need. Golden Rule 3: Spend less than you earn. Then invest the difference Commit to an annual surplus that you will contribute towards building your financial future then spend what’s left over. If you are not a “saver” then redefine “saving” as “future spending” Golden Rule 4: Grow your asset base first. Then tilt towards income Select assets that provide most of their total return in growth and lower proportion of income How can capital growth help fund retirement? Sell assets, with enough time income will be substantial, invest in other income-style assets, sell one property and reinvest in bonds, etc. You need to develop a financial model in order to work out how much to invest, when and in which asset classes. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Buy Stuart’s book Investopoly here – use the coupon code Yardney Shownotes plus more here: The 8 Golden Rules for mastering the game of building wealth – Part 1 with Stuart Wemyss Some of our favourite quotes from the show: “While it's easier and more trendy to be a pessimist, I believe that optimism is the only realism.” –Michael Yardney “They haven’t learned the simple fact that the cheapest advice is the one that gives you the best investment results” – Michael Yardney “In Australia, residential real estate is a high growth, relatively low yield investment.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

45mins

10 Feb 2021

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Ep 162 - Stuart Wemyss | Houses vs Apartments

The Elephant In The Room Property Podcast | Inside Australian Real Estate

Welcoming back Stuart Wemyss to chat shop on the importance of differentiating between types of property and how this comes into play when location, location, location matters most. Stuart Weymss is the director of Prosolutions and host of the Investopoly podcast. Stuart recently released a report Performance Review of Investment Grade Apartments which goes into lengths on the future of apartment ownership, comparatively to house and land ownership.  Here’s what we covered: What is the long term impact of COVID on desire and affordability? Expats moving back to Australia, how might this impact the property market? Is land value restricted when sold next to prestige homes? What are viewed as investment grade locations in Sydney? Why did the Melbourne apartment market fail and what will it take to rise from the depths? Why do some apartments in certain areas outperform houses in certain areas? How has COVID interrupted the downsizer market? What will the next wave of property developments look like? RELEVANT EPISODES:Episode 136 | Owen Raszkiewicz Episode 126 | Stuart WemyssEpisode 39 | Stuart Wemyss GUEST LINKS:https://www.prosolution.com.au/report-investment-grade-apartments/ Buy Stuart’s book Rules of the lending game. And use code ‘elephant’ for a discount plus free postage. Buy Stuart’s book Investopoly Subscribe to Stuart’s blog HOST LINKS:Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au Send in your questions to: questions@theelephantintheroom.com.au EPISODE TRANSCRIPT: Please note that this has been transcribed by half-human-half-robot, so brace yourself for typos and the odd bit of weirdness…This episode was recorded in January 2021

1hr 5mins

7 Feb 2021

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This is the type of property that will lead the recovery in 2021 with Stuart Wemyss

The Michael Yardney Podcast | Property Investment, Success & Money

There are signs that the modest coronavirus-induced housing correction has come to an end. Nobody’s going to ring a bell telling us the market’s bottomed, but I’m sure when we look back in 12 months’ time, we’re going to find that the value of some properties has increased significantly and our property markets turned the corner in October 2020. But as usual, some segments of our property markets will continue to languish. Now I’m not denying that we’re still going to have some challenging times ahead. We are. But the recovery of our home values has been underwritten by a number of factors that we’re going to discuss in today’s podcast as I have a chat with Stuart Wemyss. Stuart’s going to talk about what kinds of properties are going to lead the recovery in 2021 and why buying the right property next time around is more important than ever. And then, in my mindset moment, I’m going to share with you one of the most important lessons I learned from one of my mentors as we talk about the miracle of personal development. At the end of today’s podcast, I hope you’ll have a bit more clarity about what’s going to happen to our property markets inn 2021 and what you need to do to position yourself correctly. What properties will lead the recovery in 2021? The major media has done a backflip on their predictions earlier this year of 10, 15, 20, and even 30% drops in property market values. One of the people who has forecast things over the past year and gotten it right most of the time is director of Prosolutions, Stuart Wemyss Highlights from our conversation: The market didn’t take as much of a hit as many predicted that it would this is because: The government absorbed most of the cost The people who were hit hardest by the coronavirus pandemic were mostly younger and lower income There are two major sectors to be concerned about: Regions dominated by low-income earners Inner city apartment markets The loan pause data shows that 9 out of 10 of the greatest loan pause suburbs have been in southeast Queensland This might be because the area was heavily impacted by the reduction in tourism It’s also possible that most of the loan pauses are out of convenience rather than necessity. Since prices are down on the lower end of the market, why not get in on that and get a bargain now? There are two types of tenants in rentals: lifestyle tenants and necessity tenants It’s the properties occupied by tenants that rent by necessity that are on the lower end of the market These properties don’t offer much capital growth in the medium to long-term The tenants may be living week-to-week, which makes it less likely these properties will be profitable Lending criteria will soon be lessened. This is a game changer for property markets Interest rates are low and probably going to stay low for several years to come This decreases the risk of taking on debt and makes it more affordable Lower interest rates will probably have a bigger impact on the top end of the market Choosing the right first property is important because good decisions compound and lead to future good decisions Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart’s Book – Rules of the Lending Game Some of our favourite quotes from the show: “Interest rates are likely to have a larger impact at the top end of the market, the luxury end of the market.” – Michael Yardney “Instead of asking about your work, your job, “what am I getting?” instead you should be asking yourself “what am I becoming?”” – Michael Yardney “If somebody hands you a million dollars, you better hurry up and become a millionaire.” – Michael Yardney Shownotes plus more here: This is the type of property that will lead the recovery in 2021 with Stuart Wemyss PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

42mins

25 Nov 2020

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