Property forecast

Posted by Andrew Nicol on 28/11/16

The only consistency in life is change, and this year has seen a lot of this in the housing market. We are starting to see a lot more in the media about a property bubble, a softening of rents in certain areas, and a shift upwards in the interest rates. Combine this with this the changes to property investment lending and it all gets a little scary. But therein lies the opportunity.

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” – Warren Buffett

The great thing about media hype is that most people buy into it. We often find that anyone who owns a house and reads the newspaper thinks that they are an automatic property expert – but let’s not forget that the majority of people who are reporting on the investment property market are not themselves property investors. And there is no worse advice than the advice from someone who is not where you want to be, and who is not directly involved in the market.

Nobody knows what the market will do next year, and when it does level out – that is nothing to be afraid of. Being afraid makes people miss opportunities, while the brave cease them. The number one question I get asked is “when is the best time to buy”. The answer is simple – the best time was yesterday. But if you missed yesterday, the second best time is today.

My advice as we enter the season of BBQ’s can gatherings where everyone is an ‘expert’ on the property market, is to take everything you hear with a grain of salt. Stay focused on your goals, and dare to be brave and stand out from the norm. Because let’s face it, normal is boring and will have you working for the rest of your life. Who wants that?