The Michael Yardney Podcast | Property Investment, Success & Money - Navigating our Property Markets | Big Picture Podcast with Pete Wargent

Navigating our Property Markets | Big Picture Podcast with Pete Wargent

07/22/24 • 39 min

The Michael Yardney Podcast | Property Investment, Success & Money

Welcome to another Big Picture episode of the Michael Yardney podcast, where I chat with leading financial commentator Pete Wargent.

Since our last chat, a lot's happened, including rising inflation causing embarrassment to the Reserve Bank, with some commentators now speculating interest rates will rise again.

As usual, there are clues in the news as to what's ahead for our economy and our housing markets and we discuss a raft of macro and microeconomic factors that should give you some clues as to what's ahead for our housing markets.

Housing Market Hurdles and Economic Trends in Australia

We discuss:

● The May inflation figures and their potential impact on future interest rate hikes

● How government spending, particularly federal and state budgets, is contributing to inflation

● Rising living costs and electricity prices and their effects on spending habits across different demographics

● Challenges faced by the Australian government's target to build 1.2 million homes by 2029

o High cash rates

o Reduced investor interest

o Soaring construction costs

● Comparing current construction trends to peak periods like 2017

● The roles of foreign buyers in the market

● Insights from Pete’s book, The Buy Right Approach to Property Investing Mastering the Skills to Invest Wisely in Properties.

This episode is packed with expert insights from Pete and practical tips, making it a must-listen for anyone interested in understanding and navigating the complexities of Australia's economic and housing market landscape.

Links and Resources:

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

Get a bundle of free reports and eBooks – www.PodcastBonus.com.au

Pete Wargent’s blog

Pete Wargent’s new book: The Buy Right Approach to Property Investing: Mastering the skills to Invest Wisely in Property

Some of our favorite quotes from the show:

“Well, the May housing approval figures came out and they shot up a little bit, but we're still nowhere near the sort of figures we're going to need to reach that target.” – Michael Yardney

“I guess what we're saying is that unemployment is going to rise a little bit. The Reserve Bank wants that, but that may slow inflationary pressures down a little bit. But there's still jobs out there if you're wanting them.” – Michael Yardney

“The message here is most of the critics actually sit on the sidelines. They're not in the arena, they don't try.” – Michael Yardney

PLEASE LEAVE US A REVIEW

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Welcome to another Big Picture episode of the Michael Yardney podcast, where I chat with leading financial commentator Pete Wargent.

Since our last chat, a lot's happened, including rising inflation causing embarrassment to the Reserve Bank, with some commentators now speculating interest rates will rise again.

Housing Market Hurdles and Economic Trends in Australia

We discuss:

● The May inflation figures and their potential impact on future interest rate hikes

● How government spending, particularly federal and state budgets, is contributing to inflation

● Rising living costs and electricity prices and their effects on spending habits across different demographics

● Challenges faced by the Australian government's target to build 1.2 million homes by 2029

o High cash rates

o Reduced investor interest

o Soaring construction costs

● Comparing current construction trends to peak periods like 2017

● The roles of foreign buyers in the market

● Insights from Pete’s book, The Buy Right Approach to Property Investing Mastering the Skills to Invest Wisely in Properties.

Links and Resources:

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

Get a bundle of free reports and eBooks – www.PodcastBonus.com.au

Pete Wargent’s blog

Pete Wargent’s new book: The Buy Right Approach to Property Investing: Mastering the skills to Invest Wisely in Property

Some of our favorite quotes from the show:

“Well, the May housing approval figures came out and they shot up a little bit, but we're still nowhere near the sort of figures we're going to need to reach that target.” – Michael Yardney

“The message here is most of the critics actually sit on the sidelines. They're not in the arena, they don't try.” – Michael Yardney

PLEASE LEAVE US A REVIEW

Previous Episode

Governments passing the buck for the housing crisis, blaming property investors, with Nicola McDougall

For years, the dream of homeownership has seemed increasingly out of reach for many. But what of those who can't even afford to rent Social Housing? Waiting lists are overflowing and the number of available dwellings just needs to catch up.

Today Nicola McDougall, chair of the Property Investment Professionals of Australia (PIPA) joins me and passionately advocates for a fair and more effective approach to social housing. You see, despite the government raking in billions of dollars from property taxes each year, our social housing stock has remained stagnant, and the number of people in desperate need of housing continues to rise.

Now, I'm not talking about affordable housing. We’ll explain the differences, but unfortunately, private investors are often being blamed for this crisis. That's not the case. Nicola will help unpack the reasons behind the housing shortfall, discuss some of the impacts of government policies, and we're going to explore what needs to be done to provide adequate housing for all Australians.

Understanding Social Housing and Private Investment in Australia

In today’s conversation with Nicola McDougall, we dive into the intricacies of Australia's social housing crisis and its impact on private investors. We discuss statistics, government policies, and strategic investment opportunities in a challenging market.

● The differences between social housing (government-provided for the most vulnerable) and affordable housing (making renting and purchasing more accessible)

● 175,000 households on social housing waiting lists, stagnant social housing stock despite 33% population growth

● Decline in social housing stock in New South Wales, Victoria, Queensland, and Western Australia

● The role of private investors in providing rental housing

● Critique of government policies, including ineffective housing initiatives and the financial burdens placed on private investors

o Anti-investor legislation, such as increased property taxes and rental reforms, and their exacerbating effects on the housing crisis

● Potential government incentives to encourage private investment in rental housing, including adjustments to capital gains tax

● Challenges faced by highly leveraged property investors in a high-interest-rate environment

● Opportunities in Melbourne's low vacancy rates and skyrocketing rents

● Importance of portfolio diversification across different states and working with wealth strategists to outperform the market

● Hidden taxes in the New South Wales budget, such as the shift of emergency service levies from insurance companies to property owners

Whether you're a seasoned property investor or you’re just concerned about Australia's housing future, this episode offers valuable perspectives and actionable advice.

Links and Resources:

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Get a bundle of eBooks and reports – www.PodcastBonus.com.au

Some of our favorite quotes from the show:

“Anyway, it’s the government’s job to help the disenfranchised people in Australia, and in general, it's not their fault, so this is not a judge of people.” -- Michael Yardney

“Clearly, the government has no idea what it costs to construct high-rise dwellings. And if they do offer discounted rents to essential workers, and I'm not against the idea, I'm just saying the numbers don't work – where's the profit going to come from?”-- Michael Yardney

“But here's the problem. Oftentimes, exploiting your own innate abilities requires an enormous investment of your time before the investment begins to pay dividends. And because the investment doesn't produce immediate rewards for many people, it ends up being a problem.”-- Michael Yardney

PLEASE LEAVE US A REVIEW

Next Episode

Inheritance strategies to make your children richer with Ken Raiss

In today’s show, Ken Raiss and I will discuss inheritance strategies to help make your children richer.

Whether you've already built substantial wealth or are just starting your financial journey, it's never too early or too late to start thinking about how to pass on your wealth to the next generation.

Today Ken shares his insights and expertise on estate planning, trust structures, and tax implications of inheritance.

We discuss the pros and cons of different strategies, including gifting, testamentary trusts, and family trusts, and explore how these can be tailored to your specific needs and circumstances.

So, whether you're a parent looking to provide for your children's future, or just curious about inheritance strategies and how they work, this episode is for you.

Estate Planning Essentials with Ken Raiss

I hope that by the end of this episode, you’ll gain a deeper understanding of how to craft a legacy that not only protects your assets but also prepares the next generation for financial success. Ken's expert insights provide valuable guidance for anyone looking to secure their family's financial future and ensure a smooth transfer of wealth.

We discuss:

● Inheritance strategies for wealth transfer, focusing on estate planning, trust structures, and tax implications

● Importance of creating a strong will and communicating effectively with family members to avoid contested wills

● The benefits and flexibility offered by family security trusts, testamentary trusts, and charitable foundations

● Strategies for financially educating family members to ensure they understand and respect the assets they will inherit

● Complexities of blended families and how to safeguard assets for original children

● Special disability trusts to protect and provide for children with disabilities

● Business succession planning

o Key agreements

o Insurance considerations

● Importance of involving children in financial responsibilities

● Education trusts and their role in funding children’s schooling in a tax-effective manner

Links and Resources:

Ken Raiss, director Metropole Wealth Advisory

Have a chat with Ken Raiss and the team at Metropole Wealth Advisory to secure your financial future – click here

Get Ken Raiss’ report: Your Guide to Understanding Ownership Structures & Trusts – just click here

Why not get the team at Metropole on your side to give you holistic property and wealth advice– find out more here

Get your bundle of E-books and resources my gift for subscribing to this podcast www.PodcastBonus.com.au

Some of our favorite quotes from the show:

“In essence, the owner of the assets doesn't change, it's the trust, it's just the people who control it, who have access to it, that change.” – Michael Yardney

“A testamentary trust can be set up during your lifetime. It forms part of your will, but it only comes into effect upon your death.” – Michael Yardney

“And here's a little-known secret to success that only a small number of employees have ever discovered: going that extra mile is an investment in themselves.” – Michael Yardney

PLEASE LEAVE US A REVIEW