Thursday, April 26, 2018

The Happiest People Earn This Much Money

How much income do require to make you happy?

I know some people say that money doesn’t buy happiness, but I’m not sure.

In his 5 year study of the Rich and the Poor, my good friend Tom Corley found that money can indeed buy happiness.

And in this blog I’ve shown 6 reasons why money can buy happiness

So how much money do you need to buy happiness?

A study was published in the journal Nature Human Behaviour (Jebb et al., 2018) found the maximum income for optimal happiness is between $60,000 and $75,000 per year. lose saving

Apparently any more than that is associated with falling levels of happiness — perhaps because, above this level, the sacrifices are not worth it.

The researchers also asked people about their satisfaction with life.

Life satisfaction involves evaluating our lives in comparison to goals and to other people; whereas happiness refers to daily levels of positive feelings.

The ideal income for the optimum level of life satisfaction is higher at $95,000 per person.

However, life satisfaction also began to drop once a person earned more than $95,000 a year.

Andrew T. Jebb, the study’s first author, said:

“That might be surprising as what we see on TV and what advertisers tell us we need would indicate that there is no ceiling when it comes to how much money is needed for happiness,

but we now see there are some thresholds.

It’s been debated at what point does money no longer change your level of well-being.

We found that the ideal income point is $95,000 for life evaluation and $60,000 to $75,000 for emotional well-being.

Again, this amount is for individuals and would likely be higher for families.”

The results come from a Gallup World Poll of 1.7 million people in 164 countries.

Incomes in different countries were adjusted to take into account the purchasing power of the local currency — but the results are expressed in US dollars.

Mr Jebb said:

“…there was substantial variation across world regions, with satiation occurring later in wealthier regions for life satisfaction.

This could be because evaluations tend to be more influenced by the standards by which individuals compare themselves to other people.” Money Rain

The drive to earn more money could also be hurting their happiness and life satisfaction, Mr Jebb said:

“At this point they are asking themselves, ‘Overall, how am I doing?’ and ‘How do I compare to other people?’

The small decline puts one’s level of well-being closer to individuals who make slightly lower incomes, perhaps due to the costs that come with the highest incomes.

These findings speak to a broader issue of money and happiness across cultures.

Money is only a part of what really makes us happy, and we’re learning more about the limits of money.”

Read more: PsyBlog 

Wednesday, April 25, 2018

What Do Landlords Need to Know About HMO Licensing?

HMO licensing is changing. Not only is it becoming stricter and more widely applicable but it is likely that it will become centrally administered rather than under the control of a local authority. Before these changes come in, however, all HMO projects should start with a conversation with your local HMO Officer. HMO Licensing Amy: […]

27 Motivational Quotes From Albert Einstein

Albert Einstein was a theoretical physicist and among the most profound thinkers of the 20th century.

Over the years Einstein’s name has become synonymous with genius.

In his lifetime, Einstein changed the world, and in 1999, TIME named him Person of the Century.

Here are  27 of Einstein quotes; each will take you inside the mind of the legend:

  1. “When a man sits with a pretty girl for an hour, it seems like a minute. But let him sit on a hot stove for a minute — and it’s longer than any hour. That’s relativity.’
  2. “Unthinking respect for authority is the greatest enemy of truth.” albert-einstein-1144965_1920
  3. “Nature shows us only the tail of the lion. But there is no doubt in my mind that the lion belongs with it even if he cannot reveal himself to the eye all at once because of his huge dimension.”
  4.  “As far as the laws of mathematics refer to reality, they are not certain; and as far as they are certain, they do not refer to reality.”
  5.  “As a human being, one has been endowed with just enough intelligence to be able to see clearly how utterly inadequate that intelligence is, when confronted with what exists.”
  6. “In the middle of difficulty lies opportunity.”
  7. “Intellectuals solve problems, geniuses prevent them.”
  8. “Anger dwells only in the bosom of fools.”
  9. ‘Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.’
  10. “When a man sits with a pretty girl for an hour, it seems like a minute. But let him sit on a hot stove for a minute — and it’s longer than any hour. That’s relativity.”
  11. “Common sense is nothing more than a deposit of prejudices laid down in the mind before you reach eighteen.”
  12. “If A is a success in life, then A equals X plus Y plus Z. Work is X; Y is play, and Z is keeping your mouth shut.”
  13.  “The most beautiful experience we can have is the mysterious. It is the fundamental emotion that stands at the cradle of true art and true science. Whoever does not know it and can no longer wonder, no longer marvel, is as good as dead, and his eyes are dimmed.” inspiration idea mindset
  14.  “My passionate sense of social justice and social responsibility has always contrasted oddly with my pronounced lack of need for direct contact with other human beings and human communities. I am truly a “lone traveler” and have never belonged to my country, my home, my friends, or even my immediate family, with my whole heart; in the face of all these ties, I have never lost a sense of distance and a need for solitude.”
  15. “If I were to start taking care of my grooming, I would no longer be my own self.”
  16.  “Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
  17. “The ideals that have lighted my way, and time after time have given me new courage to face life cheerfully, have been Kindness, Beauty, and Truth. Without the sense of kinship with men of like mind, without the occupation with the objective world, the eternally unattainable in the field of art and scientific endeavors, life would have seemed empty to me. The trite objects of human efforts — possessions, outward success, luxury — have always seemed to me contemptible.”
  18.  “The aim [of education] must be the training of independently acting and thinking individuals who, however, see in the service to the community their highest life problem.
  19.  “Nothing truly valuable arises from ambition or from a mere sense of duty; it stems rather from love and devotion towards men and towards objective things.”
  20. “Most teachers waste their time by asking questions that are intended to discover what a pupil does not know, whereas the true art of questioning is to discover what the pupil does know or is capable of knowing.”interesting articles
  21.  “I very rarely think in words at all. A thought comes, and I may try to express in words afterwards.”
  22.  “A happy man is too satisfied with the present to dwell too much on the future.”
  23. “The important thing is to not stop questioning. Curiosity has its own reason for existing.”
  24.  “The state of mind which enables a man to do work of this kind … is akin to that of the religious worshipper or the lover; the daily effort comes from no deliberate intention or program, but straight from the heart.”
  25.  “The ordinary adult never gives a thought to space-time problems … I, on the contrary, developed so slowly that I did not begin to wonder about space and time until I was an adult. I then delved more deeply into the problem than any other adult or child would have done.”
  26.  “One thing I have learned in a long life: That all our science, measured against reality, is primitive and childlike — and yet it is the most precious thing we have.”

Bonus Quote:

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Tuesday, April 24, 2018

6 Tips on Building Wealth Independent of Your Profession or Business

I’ve recently seen a few professionals and some business people who’ve left their wealth building a little too late in life. Business Growth

They’ve come to me for advice on property investment in their 50’s (and one in his 60’s) saying they left their run late, hoping their business or practice would have provided for their old age.

And now they realise it won’t!

By the way… even if you are an employee or self employed,  this blog will be useful for you, because I’d like to share 6 important tips on building wealth independent of your job, profession or business:

1. Risk comes from not knowing what you’re doing, so pay the price to learn what you’re doing!

Sounds obvious I know, but most business owners and many professionals I know are ego driven – that’s what makes them successful in business – but they are uniformed investors.

As you can imagine this is an explosive combination.

They tend to let their business or professional success blind them into thinking that they know more than they really do in the investment arena.

2. Make sure your investment plan matches the financial stage you’re at.

I see many people with a good job, or sound professional or business income invest in what they think are “cash flow” investments. 36308275_l

They don’t really need more cash flow at this stage of their lives – they don’t realise cash flow won’t get them out of the rat race.

What they should be doing is to put their money into capital growth investments that would help them build a substantial asset base – that’s what will get them out of the rat race.

The lesson: make sure your investments match your current financial situation, don’t just follow your old plan that got you to your current position.

Even if it worked brilliantly it may no longer apply to your current situation – that’s because if you have your ladder up against the wrong wall, every step will get you further from your destination.

3. Concentrate your investments in fewer, better deals

There is a cost to every deal, so make sure your deal is meaningful enough to merit the time, focus, and expense.

The wealthiest people believe in concentration of capital.

They become experts by doing the same thing over and over again, rather than one hundred things once.

4. Invest a portion of your time and energy (at least 10 percent) to creating and executing your wealth plan

Building a successful business or profession is obviously going to be a big part of that plan, but it cannot be the only leg to the plan.


Wealth Retreat 2018 - General

Because there will be a day you may no longer have the business.

Either you may sell the business, then you’ll need the skills of how to invest the cash from the sale to generate the passive and passive residual income you need.

Or the business could fail, in which case it will be even more important to have “run some of your money from the table” and have this money invested wisely in a way that ensures your financial future.

The same goes for professionals and employees…

Ken Raiss, one of the faculty members at Wealth Retreat 2018 is my partner in Metropole Wealth Advisory.

Ken’s wealth plan calls for him to build our business into a great mid-sized Financial Planning and Wealth Advisory firm, but he doesn’t stop there.

He also invests a portion of his time and financial resources in building his family’s investment portfolio.

Like Ken, if you’re a professional or own a business it’s important that you have a wealth plan bigger than just running your business or running your professional practice.

5. Leverage your strengths when looking for investment opportunities

There is a learning curve in mastering any investment vehicle, which is why it is so valuable to leverage the advantages you already have.

Do you know a specific industry and have a network of contacts that give you information advantages? Businessman Standing Among Chess Pieces Looks Through Binoculars

Of course if you are investing in publicly traded securities you can’t trade on “insider information” – that is information that is not publicly available.

Which is one of the reasons I like investing in property, since I not only get paid for my “insider information” but it’s totally ethical and legal to trade on this privileged information!

Take the example of finance strategist Evette Anderson, another of the Wealth Retreat faculty.

Apart from running a successful finance advisory business, Evette and her husband have been active and very substantial property developers for many years.

She can leverage her experience, her network, and her research to supercharge her returns and access some great investments.

What are your advantages?

What contacts, expertise, and experience do you have that you can leverage?

6. You must become your own most trusted investment advisor—no one can do it all for you

Too many business owners make the monumental mistake of thinking that investment success is a matter of choosing the right investment advisor to handle their wealth for them.

It costs them dearly! Business Patient

Sure you need a great team around you and you don’t need to be (in fact shouldn’t be) the smartest person in your team.

But no one—no one—will be able to manage your wealth like you can.

So while you need good advisors, you need to have the sophistication to filter and use the best of your advisors.

This means you’ve got to invest the time, energy, and money to master the skill of managing your own net worth.

I’ve watched a number of business owners spend 10 years building a multi-million business, then through dumb investment decisions they lose much or all the money they had made with their businesses.

If you want my specific model on how to build your business and your wealth in lock step with each other then join me at Wealth Retreat 2018 on the Gold Coast from June 9th. 

Michael Wealth Retreat2018 268x243

Our faculty will include my business coach (there will be lots of business people and professionals attending so we have some extra special sessions especially for them), and a swag of structuring, tax, property, finance and share investment experts.

That’s why I urge you to find out a bit more about Wealth Retreat 2018 by clicking here, where you’ll not only learn from a top faculty of experts (not theorists) but you’ll also meet an instant new peer group of movers and shakers – a group of already very successful investors, business people and entrepreneurs and a number of others who are on the way to achieving the success they’re looking for.

This is very different from other seminars – and it is NOT a motivational seminar – and yes there’s follow up afterwards to ensure you take action afterwards.

Please get all the details by clicking here or call  Jo Fitt 03 9591 8888 or email her and express your interest.

And I chat with everyone who would is keen to attend to make sure it is suitable for you.

So who else will be there?

When you chose to join us at Wealth Retreat this year who will your new peer group be?

Firstly this year it looks like around 20% of the attendees have been before.

Some are coming for the second, third or fourth time.

team puzzle help buildYou may ask why do they come back if they are successful. I could say they are successful because they come back.

The second group of attendees are high net worth individuals, property investors and business owners.

They come to grow and nurture their property portfolios by updating their Wealth Plans – you’ll walk out of Wealth Retreat with a structured plan to create Lifetime Wealth and Leave a Legacy.

The the bulk of attendees are experienced property investors with between 2 and 10 properties, who are looking to expand their network and super-size their investing and learn skills and techniques that they would not find elsewhere to enable them to build a property investment business.

Wealth Retreat works so well because each of these groups of people adds something essential to the mix.

But don’t count yourself out!

Every year a few well read beginners join us at Wealth Retreat to shortcut their financial journey by developing an instant peer group of successful people.

This year we will be having special sessions at Wealth Retreat to assist investors with their biggest challenges including finance and empowering them with proven techniques for our changing markets.

Many of the attendees want to learn how to step out of the world of being paid by the hour and into the world of building their own property investment business.

In fact I can think of many past graduates of Wealth Retreat who left their jobs to pursue their passions.

If this interests you register your interest on line by clicking here, or better still email or call Jo Fitt now on 03 9591 8888, to find out more.


When I observe the most successful participants from Wealth Retreat over time I notice that those people who have “made it” financially all have moved to a place that the money isn’t what motivates them.  expert leader

Sure they enjoy the money, but it is not their main driver.

Let me explain… money is a sufficiency need.

Once you have enough of it, it ceases to be important.

So what is it beyond the money that pushes and prods and sparks and motivates you to perform at your best and to build and dream and dare?

Maybe you’ll need to come to Wealth Retreat and find out how to pursue your passion.

Please register your interest on line by clicking here, or better still email or call Jo Fitt now on 03 9591 8888, to find out more. If you’re interested in coming I’d love to chat with you personally to see if it would be worth your while.

Monday, April 23, 2018

These stats explain what will happen next in property

I keep careful track of finance approvals — they’re an important indicator of what’s ahead for property.

As I’ve often said: property investment is a game of finance with some houses thrown in the middle. Property Statistics

The good news is that the recently released ABS stats show housing finance approvals rose again across all sectors in February.

First home buyers are back in strength, while investor lending appears to have finished its earlier decline.

These results suggest there are no real signs of a significant correction ahead for our property markets which are now likely to stabilise as the year progresses.

The following graph from ANZ Bank show these trends well:


Source: ANZ Research

First home buyers are back

As you can see from the graph below first home buyers are back in the market, in part because of the NSW and Victorian state governments’ stamp duty incentives giving these buyers more borrowing capacity as they use the money they saved on stamp duty to bolster their deposits.

In fact, first home buyer lending is at its highest level in nearly five years and is up more than 40% over the past year alone.


Let’s take a long term look

As good as these figures are, they don’t really show how investor lending has fallen over the last few years.

The graph below from the HIA shows how the value of lending to property investors has fallen nearly 10 per cent over the last 2 years.

And this isn’t because of lack of investor appetite. It’s due to APRA’s intervention causing the banks to tighten their serviceability criteria.


Source: HIA

According to Tim Reardon, HIA’s Principal Economist.

“Investor participation in the housing market is vital for delivering enough rental accommodation to house a growing workforce, especially in economic hubs like Sydney and Melbourne.”


“Investors have been the target of a number of regulatory interventions and this has impacted on new starts in the residential building activity, particularly for apartments.

But recently banks see to have regained their appetite for new investor clients:

“Over the three months to February 2018, the value of investor lending slipped by 0.3 per cent compared with the previous quarter, which suggests that investment activity may be starting to stabilise” said Mr Reardon.

The bottom line: economy-property-market-grow-wealth-house-dream-first-home

The Australian property market peaked in September last year and since then house prices have slipped in some capital cities and growth has slowed in others, but I don’t see any reason for further significant falls in property values.

These latest finance approvals, the stabilisation in auction clearance rates and the banks’ increased appetite for lending suggests our property markets are experiencing a soft landing.

They are now stabilising and getting ready for a little growth in the second half of the year.

[Podcast] National Property Market Update – April 2018

What’s happening in the property markets around Australia?

In today’s episode, I’ll speak with four experts to give you an update on what’s happening state by state. Yardney Template 1 Ep44a

You’ll hear how our property markets peaked in September last year, and while the boom is over, it seems we’re in for a benign correction.

Some areas are still growing, while others are slowing down.

In most capital cities, I believe that we’ll end up with values higher at the end of the year than they were in the beginning.

Here’s some of the things we discuss:

Melbourne Property Market with Kate Forbes:

  • The Melbourne property market is consistently performing well. It may not be the best capital city performance at the moment, but it has been one of the best performers on a consistent Melbourne Suburbs Procebasis over the last decade.
  • Capital growth will continue in the Melbourne market, but not to the same levels that it has been.
  • Melbourne is experiencing a population boom because of its economic activity
  • Melbourne will continue to see rental hikes over the next couple of years
  • Investors are less able to get into the market in Melbourne due to new APRA regulations
  • Advice for investors looking to get into the Melbourne market

Sydney Property Market with Ahmed Imam:

  • Why the Sydney market is fragmented
  • Dwellings aren’t being built fast enough to keep up with population growth and migration in Sydney
  • How many houses are being built each week in Sydney – eyet there is still a deficit
  • Infrastructure projects than are occurring in Sydney
  • How Sydney property ownership will look different going forward

Brisbane Property Market with Brett Warren:

  • What was holding Brisbane’s property market back, and why it’s doing better in 2018 Brisbane Property Market
  • What’s on the horizon for Brisbane’s property market
  • Interest in Brisbane from overseas
  • Why homebuyers are getting back into the Brisbane market, and how that affects property values
  • Rental prices are continuing to grow in Brisbane
  • What type of Brisbane properties are best for investing in
  • Property performance on the Sunshine Coast and Gold Coast

Economic Factors Affecting Property Markets with Ken Raiss:

  • External factors that are affecting Australia’s economy
  • How unemployment, wages growth, and infrastructure expenditures are affecting Australia’s economy
  • How the infrastructure boom is going to affect Australia’s economy in the coming years
  • Whether the average Australian household is in good shape to take on more property debt
  • Despite the slow wage growth, there are no major speed bumps ahead in the Australian economy

Other Capital Cities in Australia:

  • Adelaide: Adelaide is very fragmented and has few growth drivers. Overall, home value growth is low
  • Perth: Perth’s market peaked in June 2014 and hasn’t reached bottom yet, although it’s getting close. It’s too early for a counter-cycle of investment Perth Property Update
  • Hobart: Hobart is Australia’s most affordable capital city and has delivered the highest capital growth over the last year. However, the market is very small and it has few long-term growth drivers
  • Darwin: Darwin is still suffering from the end of the mining boom. Housing prices will likely continue to fall through much of this year.
  • Canberra: Canberra has a strong economy and above-average population growth. However, Canberra has very high rates of land tax that are probably going to get higher. This disincentivizes investors.
  • Regional Markets: Some regional areas perform better than some capital cities, but overall the trend is toward capital cities being a better investment.

Links and Resources:

Some of our favourite quotes from the show:

“You shouldn’t change your long-term strategy because of short-term ups and downs in supply and demand or finance.” Michael Yardney Sydney Property

“I see the next major spending spree is really the infrastructure boom which is going to drive us through the next decade.” Michael Yardney

“This year’s hot spot very quickly becomes next year’s not-spot.” Michael Yardney

Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes.

You can also subscribe to to keep up with the latest information including bonus material that comes out between the podcasts.

Introducing Rory O’Mara from Closed Bridging Finance

The first in a series of videos and articles on bridging finance with Rory O’Mara, founder and CEO of Closed Bridging Finance. Rory started his company on realising that the biggest problem faced by property investors is a lack of access to ready cash and that this was something he was able to offer as […]