Property investment lessons you want to remember

What lessons can property investors possibly learn from the challenging market conditions we have experienced in the last few years.

An important lesson we can all learn is not to get sucked into the negative sentiment portrayed by all the headlines in the media and become pessimistic during a market downturn. Just as important is to not get too carried away with all the hype and optimism when the market is booming thinking that it’s going to keep going. The longer a market continues to go up, the more we are inclined to believe that it might be different this time, it may just keep going up. People start to think the good times will never end, but neither booms nor busts last forever.

Because the property market goes through a predictable cycle, we should know that over the next few years the market will rise again to a new high and then it will eventually be followed by another property downturn. After the downturn there will be another boom again, and so on. Knowing this can empower you and give you the confidence to prepare for each phase of the property cycle and to capitalise on it by investing wisely.

Don’t allow the media, which will generally use fear as an emotional means to get our attention, to stop you from the opportunity to invest in real estate and become financially independent. Follow the property cycle, knowing that a downturn follows a boom and then there will be another boom and another downturn.

Finally, when you invest in real estate, invest wisely whilst you bear in mind that you are investing for the long term. If you do, you will in time be financially better off. Just remember to make investment decisions based on good research and invest in an area that has potential for long term growth. You will then enjoy watching the value of your property grow over time. Well located property has always increased in value over time.

By Peter O’Malley