Is there always this much noise?

[ffc1883_1996]

I decided to be a property investor twelve months ago and, until recently, I've never noticed so much noise in the media about battling families, high cost-of-living, mortgage stress, interest rates, credit crunch, spiralling debt, etc. Lots of anti-investing doom and gloom.

Is it just me? Perhaps I am tuned into such comments more than ever before? Or are dour predictions and bad news much more prevalent now?

I'm planning to have an excellent 2008. A year to remember. But if I choose to stop and listen to half of the noise around then I'd best be selling - and quick!

 

[ianvestor]

Good question, I've often wondered the same thing.

As I learn more and more, I seem to notice more and more.

Now I can't take a walk down any street without wondering and estimating how much a particular house or two is worth.

Question is, is there more media coverage of property and investing than 10 years ago, or is it all in my head?

 

[phil]

... I've never noticed so much noise in the media about battling families, high cost-of-living, mortgage stress, interest rates, credit crunch, spiralling debt, etc. Lost of anti-investing doom and gloom.

Which is why I think it's important to try to see things as they really are. I'm also relatively new to investing, but I generally don't listen to any background noise and try to do what I think is the right thing to do, (with appropriate research / number crunching etc). I do think however, that these things you have described will affect the decisions of other people, but just try to run your own race and do your own thing. I think that will benefit you more.

I did have a theory a while ago that whenever you see property / lifestyle /renovation shows on the teev, than that is a better indicator of market sentiment that the news / media spin.

Just my thoughts,
Phil.

 

[LynnH]

I decided to be a property investor twelve months ago and, until recently, I've never noticed so much noise in the media about battling families, high cost-of-living, mortgage stress, interest rates, credit crunch, spiralling debt, etc. Lost of anti-investing doom and gloom.

ffc1883_1996

There is an election coming up - and a lot of political mileage to be made out of convincing voters how badly off they are, and "Just vote for me and I'll fix all your problems".

Cynical?? Who, me????? Nah, just seen it SO many times before!

Cheers
LynnH

 

[ianvestor]

I did have a theory a while ago that whenever you see property / lifestyle /renovation shows on the teev, than that is a better indicator of market sentiment that the news / media spin.

I would count those shows as media. Are there more property/lifestyle/renovations shows now than 10 years ago?

I would have been more interested in Rage or Video Hits at that point.

-Ian

 

[BayView]

No, the whole scenario is the fact that your knowledge and awareness has improved/increased, so you notice and are in tune with more.

It's a bit like when you are in the market for a new car. You narrow the selections down to one or three different models, and all of a sudden you see them everywhere as you drive around.

The media have a responsibility to report news, but not at the expense of ratings and volume of papers sold. So, the sensational angle will always win out.

Keep this in mind as you study the real estate world, and also keep in mind that most people are sheep, so look for the alternative direction and you will always stay in the 5% of the population that are winners.

The gloom and doom is rife in the media at the moment, so what will the sheep do?

They will sell before the market supposedly drops and/or the rates go up again, or they will not sell and wait it out. Basically, they won't be buying.

That's a good time for the 5% to buy.

 

[phil]

I would count those shows as media...

-Ian

Agreed, but my 'tongue-in cheek' reference to reno / lifestyle shows is an indication that people are / will spend money on property and property improvements etc. I can't prove it, (as I mentioned, it is a theory) but these shows seem to dissapear when interest in property wanes. I bet there will never be a show called "Cold / Cool property" or "Bankbalance Blitz".

Good Luck,
Phil

 

[Glucose]

As I learn more and more, I seem to notice more and more.

Now I can't take a walk down any street without wondering and estimating how much a particular house or two is worth.

I think it's a bit like noticing things more and more when you are interested in them. Like noticing lots and lots of pregnant women when you are pregnant yourself. Also, when number one son was interested in getting a black SS Holden commodore ute, suddenly I noticed them everywhere, whereas previously I'd never seen one and even had to have one pointed out to me.

I reckon if you asked someone who had no interest in the property market whether or not they had noticed an increase in new stories about it, they would probably say no.

 

[alexlee]

Yes, when the media is filled with stories about people losing their homes and how property will never go up again, my ears perk up. You can do this with specific areas: if you read about, say, a certain area being really beaten down and people think it's never going to go up again, I'd take a closer look.
Alex

 

[kaf]

Also media believes that bad news is a much better seller than good news. I'm only now starting to get interested in the share market but there always seems to be a lot more drama and frontpage stuff when it goes down than when it goes up. Same with property.

Bit like health - you won't see too many headlines about people's lives having been saved in hospitals every day - but get a case of a doctor screwing up and it's all over the news!!

It's all background noise and the articles are usually written by people who don't know anything about property - so not really worth listening to I think.

kaf

 

[phil]

Hi guys,

Just to clarify my previous post, the point I was trying to make was that I believe there are 1. Indicators of a particular market (facts, sales data), opposed to 2. sentiment (opinion). Weigh up both, but at the end of the day, do what is more appropriate to your situation. Hope that makes more sense.

Phil.

 

[tubs]

Whenever The Age, and probably other publications publish a sensationalist story on property, it always goes up to the top of the Most Viewed list. So, I figure they keep publishing what people want to hear.

They're more dedicated to giving people what they want nowadays, rather than delivering news.

 

[HandyAndy888]

Agreed, but my 'tongue-in cheek' reference to reno / lifestyle shows is an indication that people are / will spend money on property and property improvements etc. I can't prove it, (as I mentioned, it is a theory) but these shows seem to dissapear when interest in property wanes. I bet there will never be a show called "Cold / Cool property" or "Bankbalance Blitz".

Good Luck,
Phil

Nice...I would definitely watch bankbalance blitz!!!!!!!!!