Is property going downhill?
Some is, some isn't, just like the share market when negative sentiment comes in, some shares go downhill and some go up. Positive sentiment in the share market, some go up some go down.
We have had a good run the last 18 months or so in Sydney property, it can't go into perpetuity like this and things will change at some point. I personally think there is more to run but you never know.
In the end, the short term shifts are largely just 'bananas' for those that invest in shares and property with defined goals and a long term view.
It is possible that the last 18 months has resulted in my net property wealth going up in excess of $500,000 or so, I don't really know or will ever know but it hasn't changed my life in any way other than on paper, a shift in the other direction would have the same impact on my life.
If times get tough the lessons get demonstrated for us all, ie;
- it is a long term game
- focus on goals
- buy quality and well positioned
- fund it appropriately
- put it in an appropriate context in the scheme of our lives
Sure, velocity of returns is an important concept but I am not in the game of picking where things are going in the short term. I do know that I can have my money in Super and outside of super and there are 4 main areas to invest, ie, property, shares, cash or fixed interest.
I choose property and shares which are long term games for me - I structure my thinking, funding and portfolio with the goal to stay in the game as it is a long term gig.
Uphill, downhill or whatever are just short term parts of the cycles that can present opportunities, force us into decisions or whatever. Investors know that this part of the game and accept it.
If there is a bit of negative sentiment in the property market it is perhaps not a bad thing but in the long term I feel that owning your own home and buying well located, funded and quality property for investment will be the path to increased choices in life.
Sorry about the long post all
regards