Lots of people like to get involved in debates about predicting when and by how much markets are going to go . We also have debates as to the reasons why this will happen with many people putting in informed reasons why certain places won't go up .
I do get involved in these , but for me it's really of academic interest and it doesn't impact my decision making process except for giving me a heads up of where to look
The timing of my decision making is based around the well known concept of the property cycle . I'll buy some properties in the troughs if I see bargains , but generally I wait to buy more as the market starts to move more because you never really know how long it will be from the trough to when the maker starts moving .
So why do I believe in the property cycle ?
Well , the property market happens because it represents the pooled reaction of human beings and basic human reactions to certain situations don't change .
Borrowing on from common philosophy in the share market , when it comes to investing those emotions are fear and greed and until human masses learn to control those emotions and react logically then we will continue to have cycles , and those of us who are able to sit back and observe and react unemotionally will continue to build wealth .
There are certain caveats that I do look at and that is making sure I believe the economy of an area is sustainable , so for that reason I avoid mining town which in a sense are artificial creations , but most major cites have diversified economies and are unlikely to disappear.
I also believe that the same applies to Australia , it's unlilely to disappear or go anywhere , and because it's consider an attractive place to live I believe there will always be people wanting to move here so I believe we will have an growing population so there will always be an increasing demand for well located properties , so for this reason I don't think that concerns about baby boomers cashing up will cause a fundamental change in the Australian property market
Cliff
I do get involved in these , but for me it's really of academic interest and it doesn't impact my decision making process except for giving me a heads up of where to look
The timing of my decision making is based around the well known concept of the property cycle . I'll buy some properties in the troughs if I see bargains , but generally I wait to buy more as the market starts to move more because you never really know how long it will be from the trough to when the maker starts moving .
So why do I believe in the property cycle ?
Well , the property market happens because it represents the pooled reaction of human beings and basic human reactions to certain situations don't change .
Borrowing on from common philosophy in the share market , when it comes to investing those emotions are fear and greed and until human masses learn to control those emotions and react logically then we will continue to have cycles , and those of us who are able to sit back and observe and react unemotionally will continue to build wealth .
There are certain caveats that I do look at and that is making sure I believe the economy of an area is sustainable , so for that reason I avoid mining town which in a sense are artificial creations , but most major cites have diversified economies and are unlikely to disappear.
I also believe that the same applies to Australia , it's unlilely to disappear or go anywhere , and because it's consider an attractive place to live I believe there will always be people wanting to move here so I believe we will have an growing population so there will always be an increasing demand for well located properties , so for this reason I don't think that concerns about baby boomers cashing up will cause a fundamental change in the Australian property market
Cliff
Yes Virginia , prices DO always go up ...
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