Block Out The Property Panic

We cut through the panic in today’s headlines and explain why crash predictions keep missing the mark in Australian property. We share the long-term mindset and the location checks that help investors act with confidence even when the news feels ugly. 
• constant negative headlines and recurring crash calls 
• why long-term holding periods matter most 
• Australia’s supply problem and unmet housing targets 
• how to assess local supply and demand using building approvals 
• comparing local incomes to borrowing capacity ceilings and current prices 
• why waiting for the perfect time usually costs capital growth and net wealth 
• the value of partnering with a professional for a clear plan 
If you don't know where to invest right now, you don't have the confidence, but you do want to dramatically change your future, please reach out. We can have a conversation and see if we can help you with your property goals. 

Transcript

Headlines, Fear, And Crash Predictions

SPEAKER_00 0:00

Right now, the headlines are screaming. There's war in the Middle East, oil prices are rising, there's more interest rate uncertainty, and we have the government talking about new policies with negative gearing and capital gains tax. This is the constant negative noise always in the marketplace. With this negative noise, we get predictions that property is going to crash. The funny thing is that we've seen people predicting this for decades and decades, yet in the Australian property market, we have never seen a major crash. As we look back over the decades, we can see that property has continued to rise in value. So why do the doomsdays continue to get this wrong? There's always something that they're talking about. It could be COVID that we saw over the last five to six years. It could be the talk about the fastest interest rate rise in history, could be the global financial crisis. There are so many things out there that people keep talking about as a negative. The big one at the moment is the geopolitical tension with the war, with the US, and with Iran. If you are investing in property and you want to be successful, you must invest in property for a 10 to 15 year period at minimum. This means that as a property investor, you are going to continue to hear this negativity. This is where it's crucial as a sophisticated property investor to not just be thinking short term over the next couple of months, but thinking long term, thinking over a 10 to 15 year period. When you block out the noise and you focus on specific locations, there is still extremely high demand in comparison to supply. We fundamentally know that we have a supply issue in this country and the government is not keeping up with their 1.2 million target of new homes over the next five years. There are other things that you want to be analyzing when purchasing right now to ensure you still get in that area that's going to perform. You want to be looking at your supply and demand of a location, and that can mean analyzing building approvals and the demand and that demand increasing in an area for that pressure. We want to be analyzing income in those areas in comparison to where their borrowing capacity ceilings are and where property prices are right now. This ensures that you're going to get into a marketplace that doesn't correct and does continue to perform, meaning that in six to 12 months' time, property prices are going to be higher than they are today. Humans are wired to respond and act on fear. This is something as human beings that has been around for hundreds of thousands of years. Our instinct is to pause, to hold, and to wait to see what happens. People want to wait for the perfect time to invest, and that simply will never take place. As I said, there's going to be things always in the news in the marketplace that people are talking about as to why the property market is going to crash. The noise is going to be constant, the headlines are going to be constant, and you have to adapt to that as an investor who wants to dramatically change their financial future. The reality is right now that property prices are going to be dramatically higher in 10 to 15 years than they are today. We saw COVID take place back in 2020, and everyone thought the market was going to crash, and it went on one of the biggest booms that we have seen. Property prices in many areas are hundreds of thousands of dollars more now than that, what they were in 2020. This is where it's so important right now to partner with the professional to go out and get into a marketplace that is prime for growth and is going to continue to grow in value and get you towards your financial goals. If you sit on the sidelines, if you wait for the perfect time to buy, you are going to make sure that property is higher in value and you need to borrow more for the same asset and you're missing out on capital growth. You're missing out on net wealth that you could have created. If you don't know where to invest right now, you don't have the confidence, but you do want to dramatically change your future, please reach out. We can have a conversation and see if we can help you with your property goals. I hope you found this one interesting today, and we'll see you on the next one.