{"id":4917,"date":"2015-07-07T01:00:00","date_gmt":"2015-07-06T15:00:00","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=4917"},"modified":"2015-07-07T01:00:00","modified_gmt":"2015-07-06T15:00:00","slug":"the-tough-times-are-good-times-if-youre-prepared","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-tough-times-are-good-times-if-youre-prepared\/","title":{"rendered":"The tough times are good times if you\u2019re prepared – Michael Yardney"},"content":{"rendered":"

 
\nIn today’s show\u00a0Michael Yardney<\/strong><\/a>, from\u00a0Metropole Property Strategies, has some great advice – he\u00a0wants to remind you to prepare for the worst while hoping for the best \u2013 in other words, maximise your upside while, at the same time, covering your downside.
\n <\/p>\n

Transcript:<\/h4>\n

Kevin:<\/b>\u00a0 Here\u2019s some great advice from Michael Yardney, who wants to remind you to prepare for the worst while hoping for the best \u2013 in other words, maximize your upside while, at the same time, covering your downside.
\nIs that like covering your backside, Michael?
\nMichael:<\/b>\u00a0 Kevin, I guess what I\u2019m suggesting is that we have to design our property portfolio that can weather the inevitable storms that are going to come over the next years.
\nKevin:<\/b>\u00a0 It is a bit of a journey, isn\u2019t it, rather than a destination?
\nMichael:<\/b>\u00a0 To build your wealth to get to financial freedom, for most investors, takes a minimum of 15 years, and for many, even longer. During that time, you\u2019re going to be working through a couple of property cycles, some high interest rate times, some low interest rate times, some times when the property market is flat.
\nI guess the question is, how do you weather it? What do you do? How do you protect yourself?
\nKevin:<\/b>\u00a0 How do you prepare, Michael?
\nMichael:<\/b>\u00a0 I guess it starts off with the correct asset selection. What I\u2019m suggesting is you have to have the properties that are strong \u2013 in other words, they keep growing in value \u2013 but also that are stable \u2013 they\u2019re not going to fluctuate in value as much \u2013 which means, I believe, you have to invest in the big capital cities because that\u2019s where they\u2019re underpinned by multiple pillars of economic support and have the sort of property that appeals to a wide demographic, particularly of owner occupiers, because they keep buying things as the market keeps moving up and down.
\nKevin:<\/b>\u00a0 How important is it to diversify your portfolio?
\nMichael:<\/b>\u00a0 Kevin, it\u2019s important, as you build your portfolio, to protect yourself by having properties in various states, because each state is in a different stage of the cycle, and there will be some times when you\u2019re thankful that it\u2019s not in your home state because that\u2019s the area where property values will increase, and you can go back to the bank and revalue those while leaving others alone.
\nKevin:<\/b>\u00a0 I guess it\u2019s pretty important, too, Michael, when we\u2019re considering this, to think about where you stand financially \u2013 in other words, not overcommitting yourself.
\nMichael:<\/b>\u00a0 During boom times, it\u2019s so easy to get carried away, borrow to the max, lower your loan-to-value ratios, not leave yourself with a buffer, and that\u2019s when people get caught short. It happens every stage near the end of the cycle, when people are trying to do one more deal or just get in before the end, and you never know when that\u2019s going to be, Kevin.
\nI agree with you. Don\u2019t speculate, stick to tried and true strategies, and leave yourself with a bit of a financial buffer.
\nKevin:<\/b>\u00a0 Spend some time, too \u2013 I think, Michael, I\u2019ve read enough of what you\u2019ve written \u2013 making sure that you have that buffer and that you buy well.
\nMichael:<\/b>\u00a0 You buy yourself not only a great property, but a financial buffer means you can buy yourself time. You can ride out the periods when you don\u2019t have to go back to the bank for a while and say, \u201cPlease, can you revalue my portfolio.\u201d You ride out the periods where the interest rates may go up or vacancies may be a bit longer, because those investors who can see themselves through from one period of the cycle to the next are the ones who are going to do well.
\nKevin, the other big benefit of the buffer is you\u2019re going to have some money available to hop into the market when the inevitable downturn occurs, and you\u2019ll be able to get what seems like a bargain at the time when other people aren\u2019t ready.
\nKevin:<\/b>\u00a0 I really enjoyed my time at the Wealth Retreat, Michael, on the Gold Coast recently, and one of the things that I learned from talking to the great number of people who are there is that they have a plan but they actually work on it. They\u2019re very, very proactive with their strategy.
\nMichael:<\/b>\u00a0 They\u2019re thinking in advance, they\u2019re thinking ahead, and I guess that\u2019s what we\u2019re talking about in this little chat, Kevin. As you started off saying, look forward to the upside, but prepare for the downside, because I read <\/b>many years ago that King Solomon had inscribed in his ring the words \u201cThis too shall pass\u201d to remind him not to be too overconfident when things were flourishing and not to be too despondent when things were bad.
\nKevin:<\/b>\u00a0 I guess you have to concentrate on not being negative but understanding that tough times do come, Michael.
\nMichael:<\/b>\u00a0 That\u2019s what Warren Buffett said: \u201cBe fearful when others are greedy and be greedy when others are fearful.\u201d The tough times are good times if you\u2019re prepared.
\nKevin:<\/b>\u00a0 Great talking to you. Michael Yardney, from Metropole Property Strategies.
\nThanks, mate.
\nMichael:<\/b>\u00a0 My pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

  In today’s show\u00a0Michael Yardney, from\u00a0Metropole Property Strategies, has some great advice – he\u00a0wants to remind you to prepare for the worst while hoping for the best \u2013 in other words, maximise your upside while, at the same time, covering your downside.   Transcript: Kevin:\u00a0…<\/p>\n","protected":false},"author":176692471,"featured_media":4918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,13,25],"tags":[101],"class_list":["post-4917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-latest-story","category-sponsored-channels","tag-podcast"],"yoast_head":"\nThe tough times are good times if you\u2019re prepared - Michael Yardney - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-tough-times-are-good-times-if-youre-prepared\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The tough times are good times if you\u2019re prepared - Michael Yardney - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  In today’s show\u00a0Michael Yardney, from\u00a0Metropole Property Strategies, has some great advice – he\u00a0wants to remind you to prepare for the worst while hoping for the best \u2013 in other words, maximise your upside while, at the same time, covering your downside.   Transcript: Kevin:\u00a0...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/the-tough-times-are-good-times-if-youre-prepared\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2015-07-06T15:00:00+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-tough-times-are-good-times-if-youre-prepared\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-tough-times-are-good-times-if-youre-prepared\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"The tough times are good times if you\u2019re prepared – Michael Yardney\",\"datePublished\":\"2015-07-06T15:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-tough-times-are-good-times-if-youre-prepared\\\/\"},\"wordCount\":911,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-tough-times-are-good-times-if-youre-prepared\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Kevin Turner\",\"Latest Stories\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-tough-times-are-good-times-if-youre-prepared\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-tough-times-are-good-times-if-youre-prepared\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-tough-times-are-good-times-if-youre-prepared\\\/\",\"name\":\"The tough times are good times if you\u2019re prepared - 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