The Property Market In Crisis

The world is starting to get back to normal. But what does the new normal mean for the property market?

Maybe you read headlines about a potential financial crisis and you wonder how it affects your investments. The truth is the media likes to tout doom and gloom headlines. But they don’t give the public all the facts.

So, the first thing you should know is that usually after a crisis like this, real estate prices have often bounced back very strongly. It seems impossible, but it’s true.

Think back to the financial crisis of 2008-2009…

• Sydney bounced back at 39% over five years

• Melbourne bounced back at 18% over five years

If you go back to the financial crisis of the mid-70s, you’d see that real estate prices grew by 100% over five years. 

The reality is that real estate does not move like shares.

If you take shares for an example, have a look at the last four months. If you have a share portfolio, you’ve gotten killed because the share market dropped by 35%-40%.

So, people who have their super parked in shares are dying right now trying to get out. Sure the market is starting to climb back, but most people are realising heavy losses. 

Shares work on those snapshot figures. When prices go down, they show up in the value of your portfolio immediately. But real estate works differently so you can’t just look at one number and declare that the markets are dropping.

You may see transactions slowing down, but that’s because people are not putting their properties on the market. 

Remember that investing in real estate is a long-term game. You may see little blips in the market now, but over time they could equal huge gains. After all, history shows that it’s happened before.

Are you ready to expand your portfolio or start your own long-term investment?

The bottom line is there are incredible opportunities for the taking... and we can show you some of those in our webinar.