Over the many years that we as a company and us as individuals have been helping many Australians become wealthy and secure through prudent investing in property, we have been bombarded by many crises. From the recession we had to have in the early nineties to the downturn of the economy after the September 11 attacks to the current world financial crisis.
Ultimately it’s not what is happening that matters its how you respond to it that matters more. How you cope with it and look for the opportunities and stick to your strategies will ensure you survive and prosper no matter what.
Let’s look at it step by step…
Taking Control (Putting things into perspective).
As mentioned previously, downturns and crises have always happened and unfortunately, they’ll continue to happen in the future. None of us can control or possibly know what will happen next but history gives us clues. History also reveals that we do come out of them time and time again.
It’s not a question of taking control of what’s happening outside our control, but to take stock and responsibility of our own situation
Clearly, history has shown that markets and the economy are cyclical. In fact, the cycles happen every seven to ten years in most developed countries.
The question you need to ask is how will this affect me and do I have the strategies in place to overcome what is happening now and what we know will most certainly happen time and time again in the future?
At Domain Charter Group we help our clients to focus on an appropriate strategy taking into account all that can go wrong to your particular situation. After all, we are all different and have different needs and goals. We are also all different in our current circumstances.
Once we have the right strategies in place, we stick to them, no matter what. We’ll continue to be bombarded by negative events and opinions but ultimately, investing and in particular property investing is long term. You have to stick to your guns. This is taking active control of your own financial security and future.
Controlling the Fear
With all this talk of recession the fears of rising unemployment are real, however the reality is that most of us will not lose our jobs. This fear will paralyze many homeowners and investors to wait till the uncertainty diminishes, however by then it may be too late to take advantage of the many opportunities that are now available.
One thing is certain; those that can put this fear into perspective and have a game plan will not be sitting on their hands and waiting.
The Opportunities.
‘No matter what, something good comes out of everything.’
The opportunities are everywhere. They’re just waiting to be picked up right now. The current environment has delivered some of the best opportunities for property investors for years and while there’s never a bad time to invest in property, history shows us that it’s never been a better time than right now.
Interest rates have never been lower; demand is at an all time high for rental properties with a chronic shortage of affordable rental properties and rents are going through the roof. This has been fueled by the record population growth with forecasters predicting that this will only get worse.
Since 1998, Melbourne’s population has grown by 600,000 and will continue to grow from 3.9 million to over 5 million over the next 15 to 20 years according to the Australian Bureau of Statistics and BIS Shrapnel.
Certainly all the fundamentals of property growth continuing well into the future are clear.
Need more proof?
10 years ago according to the REIV and ABS, Melbourne’s median house price was $226,500, today its $469,000. What will it be by 2019? Based on historical data and current forecast it will be around $900,000.
Is it any wonder more and more of our growing population will be forced to rent for longer or worse, for life?
Taking the next step.
For those of you that have taken action, and in particular those of you that have elected to allow Domain Charter to assist you in securing your financial security through property investing; you’d be aware that the number one thing you need is education.
We’re not talking about what they teach you at school. In fact they should be teaching us all at school how to handle money but unfortunately they don’t.
We’re talking about the right knowledge pertaining to property investing based on your individual needs.
We’re talking about expert knowledge, not from well meaning friends and relatives that all have an opinion but little investment experience if any.
It’s crucial you get all the facts and relevant information so you don’t get it wrong. It’s also crucial that an appropriate strategy is put in place to minimize the risks and maximize the outcome with or without the recession and all the doom and gloom.
For hundreds of Domain Charter Group’s clients, that’s been the case and will continue to be. Focusing on all the facts as they pertain to your individual circumstances and ensuring a correct plan and strategy despite the current environment means that you’ve taken all the necessary steps to beating the recession and all future recessions to come.