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Inspire & Inform Show

Inspire & Inform Show – Episode 15

In E15 of the Inspire & Inform Show, Andrew will be sharing some tips he learnt from one of his mentors about the difference between goal setting & goal getting as well as sharing a personal story on the topic. He will also be sharing some high level insights and predictions about where the property market will be heading post Coivid & why he is so confident about property as the long term vehicle for his wealth creation.

Please see below for the full transcript of this video


Andrew 0:09
Good evening ladies and gentlemen boys and girls. My name is Andrew Koleda from Inspire Realty and a very warm welcome to you all for Episode Number 15 of the Inspire and Inform Show where it’s our mission to help you really navigate through property investment, wealth creation, money management, and really here to be your guide or mentor towards building a better future for yourself. And obviously the vehicle that we choose for our own wealth creation is property investment, and very excited to be here with you all tonight to share a couple of stories, some that that occurred to me over the weekend that really got me to reflect on, I guess the difference, a key lesson that I was taught by one of my mentors around the difference between goal setting and goal getting.

Andrew 1:13
Because a lot of us these days, we really know hey, in order to achieve anything we need to sit down, make a plan. And so many of us are doing that these days. Just think about your own New Year’s resolutions. How often have you made a resolution a plan a goal that you wanted to achieve in a calendar year, only to realize in February, that you’re nowhere further towards achieving that goal than when you started.

Andrew 1:44
So there’s a very big difference between goal setting and goal getting that we’re going to talk about tonight and I’m going to share a very rewarding experience I had over the weekend where I was able to get on She’s one of my longer term goals. And I guess I just wanted to share some of the emotions that I that I went through with you all. And, you know, I gave myself a little bit of a pat on the back for sticking to what I set out to achieve and realizing that and turning the dream or the goal into reality, and I wanted to share a little bit about that with y’all tonight.

Andrew 2:25
And also, I wanted to share a little bit about some of my thoughts around the property market post COVID-19. There’s been a lot of talk in the media of recent times around, you know, the potential vaccine that Australia is invested in in order to combat the effects of COVID-19 and allow our population and our economy to return to some sort of normality.

Andrew 2:57
And really got me thinking this week around some of my initial thoughts that I had when back in March around how property was going to react to COVID-19. I actually got a call in I think it was in April, by one of the accountants within my network. And he said to me, Andrew, I’m really interested to hear what your thoughts are around how this is going to impact property. Whether or not it’s a good time for me to invest. And, you know, as I reflected in that conversation, I shared some of the insights that I’m going to be sharing with you all tonight that I think it’d be really valuable for really positioning your mindset around, why you’re doing this in the first place, and why you’re tuning into a show like Inspire and Inform.

Andrew 3:49
But also, I’ve managed to dig up a little bit of data and some recent data to share with you that really sort of justifies my initial thinking. around what I think is going to happen to the property market over the next few years, once the initial impacts and once we get on top of both the start to get on top of the economic crisis, which is going to take some time, but also primarily driven by Australia, eventually overcoming the health crisis, the two crisises that Scott Morrison is always speaking about. So that’s what’s on the agenda for tonight’s show.

Andrew 4:28
As always, the information I’m going to be sharing with you tonight is very general in nature. It doesn’t constitute advice. It’s not related to your personal circumstances, but really designed to give you a good foundation of knowledge and a framework to be able to go out and make your own property investment decisions or to you know, eventually consult with us if you have the need to if you want to dig a little bit deeper and start to relate some of the information we share on this show to your own personal circumstances, we’re available to be reached out to via social media, you can comment on the post, whether it be on Facebook or YouTube that you’re watching tonight. Or you can visit our website at There’s a lot of other great information that we’ve shared on on our website. And you’ll also have the opportunity to schedule a 45 minute consultation with one of the property investment strategists at Inspire Realty to really dig into your personal circumstances and really get some clarity and confidence around using property investment as a vehicle to be able to live the lifestyle that you deserve once you decide it’s time to finish working.

Andrew 5:52
So without further ado, let’s let’s get into the material for tonight. So as I said, as I said in the introduction What I was thinking and reflecting upon on the weekend and early this week around one of the lessons that I learned from my mentor, and that was the differentiation between goal setting and goal getting. And a couple of the insights that he shared was the difference between people who set goals and achieve them versus people that just set them and forget them is number one, they create for themselves, not for anyone else for themselves an unconditional commitment towards achieving that goal.

Andrew 6:36
So they don’t say, Well, if this happens, and this happens, and this happens, then I could get here. They when they setting their goals, they say no matter what, no matter what, what happens, what circumstances I’m faced with now, and also no matter what the timeframe. Now, it’s very important when you’re setting goals for yourself that you you know, we often hear the term SMART goals simple, measurable, attainable and time. It’s very important that you set timeframes. But an unconditional commitment really towards achieving something, especially something big means, no matter what, no matter what challenges no matter what I need to overcome, no matter how long it takes me, I want that. And you really need to define that. And that you can really hear the difference in people’s language and mindset when they’re setting goals, whether or not they actually going to achieve them.

Andrew 7:33
It’s oh yeah, you know, I love to be wealthy, I’d love to have passive income or be so nice. Those people unfortunately, because anything worthwhile in life is always going to have challenges presented to you in order to attain them. Nothing worthwhile in life comes easy. So the people that are oh yeah, it would be nice if I could do this, then they’re not going to get there unfortunately, because when the challenges come and when things get difficult. They’re gonna give up because they reason is not big enough, they’re not unconditionally committed to achieving their goal.

Andrew 8:09
And I didn’t put it in the slides, but it recalls of the story. If, if you had to get to Melbourne if you’re in Sydney and you have had to get to Melbourne, and there were no planes. And you there was no cars there was a volcano had erupted for some strange reason. And the only way you could get to Melbourne was if you walk there. Would you get there? Well, the answer to that question is really do have a big enough reason to get to Melbourne. If it’s to go and have a beer with one of your friends. You’re probably not going to walk that distance. But let me tell you if one of your children was in grave danger and unless you got to Melbourne, they were going to suffer some sort of serious injury. You bet your bottom dollar you would get to Melbourne. So that’s really what I’m getting at when I when I’m speaking about an unconditional commitment towards achieving a goal. But how do you get there?

Andrew 9:10
And that my mentor has shared with me that it’s almost like achieving any goal in life, whether it be wealth or any other goal is really like building a high story, tower. So if you had to build a high story tower, what are some of the steps that you would take? Well, first thing is you would go out and you would form a plan, you would go out and source the materials and all the experts that you needed to help you along the way, the architect, the builder, all those sorts of people that are going to help you implement the plan. And then you would simply take action and implement your plan. And it’s very strange this analysis when I reflect on it, because when it comes to one of the most important areas in life, and I’m not saying it’s the most important there’s lots of important things in life. But one thing that is very important is wealth creation, that ability to support yourself once you decide to stop working. And it’s very strange that most people, the majority of Australians are simply either leaving it to chance by going through saying, Hey, this is a long time away and maybe the age pension and superannuation will help me out but I don’t know they’re leaving it to chance. Or on the other hand, they’re saying, I’m going to take it on, taken on my own shoulders to go and do this by myself. I don’t need anyone I live in a house. So I don’t need anyone else to help me to go out and buy a house as an investment. And it seems very strange that people take that course of action.

Andrew 10:52
But the other thing that I found is really important when it comes to the difference between goal getting and goal setting. is having the goal to be something very specific and very personal to you. For some people the simple goal of creating financial freedom or wealth, it doesn’t really mean anything to them, it’s not significant enough to them in order to motivate them to number one take action, but then to go through all the pain of holding on to those investments for long enough for the capital growth and to realize the wealth. So it needs to be something that personally relates to you, and I can’t tell you what that is for you. But what I can do is I can share an example of something that is very personal to me to maybe give you a bit of an indication and help you understand exactly what it is I’m trying to convey.

Andrew 11:51
So a couple of years ago, I set myself a goal to help out Naomi so Naomi is my soon to be as of about a week and a half my soon to be mother in law. And she’s on the age pension a single lady. And she was living on level two of a apartment building that had no stairs and as you can see had no lifts, sorry. So she every time that she wanted to go in and out of her apartment, she would have to walk up and down those stairs. Now unfortunately, at age, I think 71 or 72, she’s starting to feel the effects of arthritis. And I set myself my goal that I wanted to be able to help her in some capacity to have a better life and to not have to go through this pain every day.

Andrew 12:45
And the photo on the left I took on Sunday, and I’m happy to report that I was able to achieve that and that’s a photo of Naomi walking down the stairs of that apartment for the very last time, as I was able to help her to move into a property that I actually purchased as an investment, and you know, it was very rewarding going out there with helping her to move, although, you know, moving was was a big task for any of you that have moved houses in the past, you know how big of a task it actually is. But then to see her to her delight to be able to walk down to the train station to walk five minutes to a Coles. We’re not even five minutes, two minutes to walk to Coles to get groceries. You know, her comment to me was she was living the dream. And for me, that was living my dream, my reality, that goal that I set out to achieve and for me wealth is not just about, you know, dollars and cents in the bank. It’s about what giving you the choices and that flexibility to be able to make choices that you know, probably not the most fiscally responsible choices, but choices for the people. that you love and care about that have not just small choices to help them out, but choices that are going to genuinely have the capacity to change their lives.

Andrew 14:08
So that dream was big enough and specific enough. And I set myself the unconditional commitment to go out and achieve that dream. Now, as I, as I share this with you, it’s not because I want to pat myself on the back. It’s because I want you I want to inspire you to really sit down and think about your own goals that you’ve set for yourself and reflect on them and say, am I unconditionally committed? No matter what happens, I am going to achieve this. And are they specific and meaningful enough to make you care about them enough in order to go through the pain that you need to go through, and there’s no easy way out of this in order to actually become a goal getter instead of being perpetually stuck as a goal setter. So that’s that’s why I wanted to share that story with you tonight.

Andrew 15:10
And now I just wanted to get into a little bit of property data and really dig in and share some of my thoughts and or predictions if you like. And it’s very, I guess, tumultuous to make any predictions about anything at the moment. And we’re living in such uncertain times. But around I think, over the, let’s call it the short to medium term, how the goings on within the property market and within our economy, are going to ultimately impact on the property market.

Andrew 15:46
And one of the interesting things and what I’m sharing with you now is a chart that from the ABS that actually shares with you some information around household income and consumption as well as some savings. So what we see during the COVID period is that consumption has diminished quite significantly. And I think that’s a factor of really uncertainty but also potentially within a drop of within the scope of incomes dropping. Depending on where you live in Australia. We live in a very much, you know, what, everywhere and Victoria right now, two different economies. But we also have seen the amount of savings start to increase over this COVID period. And why we why we see that is I think that consumer sentiment has obviously significantly reduced people are less confident. And so they are looking to build a little bit of security for themselves a bit of a financial buffer. If they didn’t have that in place already.

Andrew 16:58
There’s less money I’m leaving Australia because we can’t travel overseas. And ultimately, even though spending has reduced, I think that that is ultimately good for the Australian economy to see more money remaining in Australia instead of getting spent overseas.

Andrew 17:17
We’re seeing interest rates are at an all time low. And because of the economic conditions, they’re forecasted to remain low for the for the next few years. And we’ll get to that a little bit in a moments. But I think that’s going to have a big impact whenever we’ve seen times in the past where interest rates have been low or relatively low. We’re at record lows at the moment. We have seen a significant response in terms of property prices as property becomes cheaper more people can afford to pay the make the repayments, more demand property prices go up. What’s holding us back at the moment is obviously the uncertainty that’s around COVID, etc,

Andrew 18:03
We’re seeing a lot of incentives for first home buyers. And I think this this savings regime and less ability for people to spend as our economy has slowed down, as long as if those people have remained or maintain their income. This is a been a great opportunity for them to save the final part of the deposit that they need to do, or to save up some money to take advantage of these first homebuyers grants. Couple that with the stimulus, I think that we’ve seen over throughout the COVID period, that there’s been a underlying demand for Australian residential real estate but what’s been putting the brakes on the real estate market is obviously COVID-19 and people’s uncertainty.

Andrew 18:51
But the interesting thing that we’ve seen and this next chart shows that in terms of new property, whilst there’s been a diminished demand for buying property or less buyers in the market, there’s also been a significant reduction in supply. So people or households are generally not in a position where they’re forced to sell despite what the media may be telling you. And this is coupled on the back of these, the economic stimulus provided by the government. But it’s also coupled by the bank, the fact that the banks are playing ball, having the mortgage freezes, people, I guess, are not genuinely positioned where they have to sell in these uncertain times. They’re making the decision to either delay selling if they were planning to sell or just not being forced to sell.

Andrew 19:43
So what this all means is whilst we’ve had a reduction in the demand for property, we’ve also had a corresponding reduction in the amount of supply. But what I wanted to focus on is the, I guess, the new building approvals because that’s gives us a really good indication as to what we’re going to expect for future supply. And the reason why building approvals are a really good indication of future supply is if you think about building an apartment block from the time that the building’s approved, it might be 1,2,3,5 years before that apartment is actually delivered into the market. Now, there is a there is a reasonably in these uncertain times getting finance for developers are, I guess, a little bit more challenging, but also developers confidence in the market is diminishing. And that’s that’s a couple of the reasons why we seeing this significant reduction. We’re were already on a downward trend by the way of supply throughout the COVID-19 period. So when I was sort of rationalizing all this and trying to put it together, we’ve got an economy or consumer confidence that has significantly declined in a very rapid, rate.

Andrew 21:05
But the point I really want to impress on you over here is computed consumer sentiment or confidence is a very volatile index. It’s very, it changes very quickly. It’s very reactive to the new cycle and the overall feel of the economy and how people perceive it. And because of this, I think it’s going to Well, I know it changes much faster in terms of property, then the supply side of things. So if we’re getting a lot of diminished building approvals, currently, yes, right now we’ve got reduced consumer sentiment, we’ve got a reduction in the amount of migration or significant now that nearly zero migrants coming into Australia which represents a significant proportion of our population growth. But what I want to really impress on You all is I want you to cast your mind into the future. Now I’m very much an optimist. I like to see classes as half full.

Andrew 22:09
So I thought I, if I fast forward by mine, two to three years into the future, I have confidence in our society that we’ll find some sort of either a vaccine to COVID-19, or the as a society, we’ll learn and evolve in a way that allows us to function given the medical constraints that are put upon us. So if we return to some sort of normality, whether that be a new normal or the previous normal in two or three years time, with demand significantly rising, we open up the floodgates which can be turned on at a dime once the health crisis is taken care of. We’re going to see over the next couple of years a significant increase in the amount of demand in the market at the moment is being supported and underpinned by first home buyers. As well on the back of the government incentives, but once the investors feel confident to return to the Australian property market, I think things from a demand perspective are going to happen fairly quickly. But from a supply perspective, because we’ve had that reduction of supply over the last few years, and that been exacerbated by the covid 19 pandemic, supply can’t be turned on like a tab quickly to pick to meet with the new increased demand. And so that’s why I feel very confident in the future over the next couple of years. We’re going to have an imbalance between supply and demand, which is going to lead to our property market showing some sort of response. I’ve heard it said that it’s almost like the fundamentals of the Australian property market are there but they’ve just put the brakes on the cars there, the engines there, it’s ready to go. But the drive is just gone out. As part of the health pandemic. And finally, just on the migration side, which has been the catalyst of, I guess, the Australian economic story over many, many years, I think that demand from a migration perspective to come and live in Australia once the health crisis is sorted out, it’s going to be higher than ever, comparatively. Australia is going so much better than the rest of many other countries across the world that we’re usually compared to, and even many that we’re not usually compared to, I think it’s going to be a very desirable place to live. So overall, once you lift your eyes through all this muck that we’re being presented with and all this uncertainty, the outlook in the medium to longer term for Australian residential property remains strong. That’s why I keep my confidence around choosing that as my investment vehicle to build wealth for my future. So if you have any questions about that, feel free to comment on the on the post. I’d be interested if any of you have an alternative opinion because I’m not saying that I know everything. That’s just how I see the world. But, you know, I’d love to hear any competing thoughts or differing thoughts around this subject matter. Or if you’d like to sit down and see how this more macro perspective fits in with your own current goals and objectives. Or even if you just want to sit down and work out some goals for your future and help us let us help you to become a gold getter rather than a goal setter comments on the post that you’re watching this, visit us at www dot inspire All of our strategist a he’d help and would love to add value to you in any way that we can. So thank you very much for listening. That’s all from me for now and have a fantastic evening everybody. I won’t be joining you for the next couple of weeks as I go through my wedding and also the honeymoon that in shoes. But that’s a story for a different time. So thanks again. Have a fantastic evening and speak soon. Bye for now.

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