Considering many think the world is going through an economic crisis unseen since the 1930's, it would be interesting to hear Ian and Jan Somers perspective on property investment now and into the near future.
If I read their books properly, their mantra is buy when you can afford to and hold forever.
With the dual edged sword of falling interest rates but possibly falling property prices, and a fast softening economy, would they recommend
- sell off of dogs
- deleverage somewhat (along the lines of lowering LVRs on a margin loan)
- buying in the next 2 mths or waiting for prices to soften further.
There certainly was never a credit crisis as severe during the time Jan wrote her books. It seems to me the case to buy now (if you can afford it) has has the advantage that borrowing might get tougher in the future. But that has to be traded off against the very real possibility of prices decreasing signficantly. Afterall, if most find it tougher to borrow, then prices have to decrease.
If I read their books properly, their mantra is buy when you can afford to and hold forever.
With the dual edged sword of falling interest rates but possibly falling property prices, and a fast softening economy, would they recommend
- sell off of dogs
- deleverage somewhat (along the lines of lowering LVRs on a margin loan)
- buying in the next 2 mths or waiting for prices to soften further.
There certainly was never a credit crisis as severe during the time Jan wrote her books. It seems to me the case to buy now (if you can afford it) has has the advantage that borrowing might get tougher in the future. But that has to be traded off against the very real possibility of prices decreasing signficantly. Afterall, if most find it tougher to borrow, then prices have to decrease.