...at some point in the future.
A lot of smart people think it will happen in the near future and a lot of other smart people don't think it will happen in the near future.
I'm not personally into predicting (guessing) when anything will happen. It'll be what it'll be.
But I do think it's important to come to terms with. There will be times in our investing careers that everything goes wrong and the more prepared we are, the better it will be.
I'm actually a fan of all the negative hype at the moment because it causes investors to think and prepare. On the back of 13 odd years of growth, 2 years of boom where you literally could not do wrong - any strategy, any property type, any location, exceeded all expectations.
The 2 objectives of property investing (for me, maybe not everyone else)
Maximise exposure to increases in market value and rent.
Insulate and protect assets during a downturn.
Maximising exposure is easy - buy more.
Insulating is less glamorous:
High cashflow portfolio
Add value through renovation or development
Hold cash buffers in case of emergency
Increase personal income (the biggest factor for any portfolio. To both increase exposure and decrease risk)
The worst result for an investor is being forced to sell property for less than the loan amount. There's not much worse than debt without income.
When will it happen? Who knows?
Hope for the best, prepare for the worst.
This is not financial advice. The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
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