How important is timing the property markets?
The answer may surprise you as I share so of the latest research we conducted at Metropole.
In this Masterclass I'll explain:
- What happened to property values in the last 4 property downturns
- 4 conclusions we have drawn studying the last 4 property cycles and
- 7 lessons you can take away to help you understand how to make sense of the current property market downturn.
Masterclass Is Timing The Market Really That Important For Property Investors
Please watch the video as I explain:
- “Perfect” timing has little impact if you hold your investment over the long-term
- Owning the right assets is critical
- Time in the market is important
- No one really knows what’s going to happen to the property markets
What can an investor learn from this?
- There are multiple property markets around Australia at the moment – some are still growing, others are poised for growth and some markets will experience falling prices over the next year.
- Rather than trying to time the market, buy the best assets you can. Timing your purchase well will give you a one-off bonus. However, owning the right property – an “investment grade asset” that grows at wealth producing rates of return will see your portfolio outperform over the long term.
- At times of poor or no capital growth, strategic property investors “manufacture” capital growth through property renovations or development.
- Booms never last forever, neither do busts. Don’t be surprised when they come around and don’t overreact. This will help you avoid being sucked into booms and spat out during busts.
- Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behaviour of an unstable crowd of other investors. While the long-term performance of property is influenced by the fundamentals, its short term performance is much more affected by market sentiment.
- Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions. Don’t make 30 year investment decisions based on the last 30 minutes of news
- Recognise that property is a long term play and set up financial buffers to help you ride the property cycles.