I’ll get to the property stuff in a bit but first I need to vent. I’ve been following the US election process closely for a good 12 months now and, apart from becoming increasingly proud to be an Australian, it’s made me realise the extent to which fear sells.
On one side we have facts:
The US economy has surpassed its depression era recovery to record the highest number of consecutive months of growth.
On the other side you have a nut-job whose policy begins and ends with the slogan:
‘I alone can protect you.’
It is mind boggling that, in light of the economic performance I note above, masses can be sucked into this simple rhetoric. Fear, it would appear, is a business and business is good.
The same applies, although with less insanity, to the Australian property market. Too often the hurdle of fear restricts our view of the bigger picture. We procrastinate, we make excuses and we wait for the ‘perfect time’ to invest. Unfortunately, that seldom comes around. To invest in the ‘right property,’ you may need to pay a premium over the ‘wrong property.’ Remember, value is more important than price. To invest in the ‘right market’ you may have to get out of your comfort zone and look beyond your backyard. To invest at the ‘right time’ you may have to compromise on the interest rate you pay.
What I do know is that the pros of the current state of the market far outweigh the cons, it’s just a matter of looking beyond the fear. Here are just a few:
|Record low interest rates||Below average rental growth|
|Lowest holding costs in two decades||Supply exceeds demands in some locations|
|Good value, if you know where to look||Developer risk – financial capability|
|Property has outperformed the equity market over the past thirty years||Finance risk – important to stress test and know your numbers|
I’ll leave you with this:
‘Courage is not the absence of fear, but rather the assessment that something else is more important than fear’ – Franklin D Roosevelt.
I for one know that my financial future is far more important than fear. My colleagues share my thoughts, that’s why more of them have invested in 2016 than any other year. Get educated, establish a professional support network and take action.