We often get emails and questions about the state of the property market and the overall financial situation. I follow the state of the property market – both through my own research and also through the information portrayed in the media. Sometimes the media portrayals are positive, however for the most part they are negative, often predicting or claiming a property bubble about to burst, housing being unaffordable, property prices slumping, auction clearance rates down, impending financial catastrophe and ruin for everyone….
Doom and gloom sells. Often there is some truth to stories being told, however, it’s all in the telling and a more dramatic approach seems to get better results when it comes to media portrayals. Things are often put across in news stories as black and white, when we all know what for the most part, we live in shades of grey.
I do listen to the media, I particularly listen to the words of some of the property experts whose work I follow and whose opinions I respect, people like Jane Slack-Smith from Your Property Success or Terry Ryder from Hotspotting. It is important to remember, however, that one person’s opinion is just that, one person’s opinion. One thing that I look out for when deciding if I will choose to listen to the opinion of someone claiming expert status is the degree to which their language and views are black or white. People who speak in absolutes, to me, should be heard with caution. Things like:
You MUST invest in …
You SHOULD NEVER do …
The market IS now ….
The market WILL ….
Truth is, there are many ways to invest successfully and no one way is always correct. The property market is influenced by a variety of factors and no one can tell you with 100% certainty what will occur in the future. No one can tell you with 100% certainty whether the current market is at the top of a cycle or at the bottom – one can only recognize this with hindsight.
Of course we can speculate and put forward our opinions – and that is what people do.
Often, when we do receive questions from people seeking out our views of the current market they are looking for reassurance that their decision to invest or not to invest is justified. That they have chosen to do the right thing, that it will work out in their favour, that they will make money, that they won’t lose money.
Oh, how I wish I could provide the answers they seek, but I would be foolish to assert that I know anything for certain. Of course, I will often give my opinion – but of course – it’s just my opinion.
The point is this. If you are investing – in anything – be it shares, property, ostrich farming – you must take a risk. The key is that you need to minimize your risk by ensuring that it is an educated, informed and calculated risk. Listen to people you respect, read what’s going on, continue to ask questions, educate yourself, form an opinion and make decisions that you own and you are ultimately responsible for. After all, no one is more interested in your financial future than you.
At Everyday Property Investing we have a fantastic community of people, our listeners and readers who provide information, tell us of their experiences and ask great questions that get us all thinking. It is fantastic to see just how interested and motivated our community is and how so many people are ‘stepping up’ to educate themselves, make decisions, take action and really own their future.