It is undeniable that in recent years property investing has grown in popularity and become a staple component in an investor’s portfolio. Where once people hosted ‘Shares Clubs’ to exchange tips and dabble on the stock market, many of these investors are now property investors and discussions centre on where best or where next to invest.
This therefore raises the question of whether the property investing market has reached saturation point, and in turn whether property is set to follow the same fate as stock investing’s declining popularity.
The point is, there have always been serious fluctuations in property but we know there is a cyclical process and that we need to adjust our portfolios accordingly. Interest rates in South Africa spiralled out of control in the late 90’s but led to a massive surge in property investing owing to the capital and rental yield returns that inevitably followed.
People will always debate and speculate that property isn’t a viable investment which is great news for those of us that know it is. There are two important observations to consider:
1. Firstly, no-one gets in at the bottom
2. Secondly, no-one gets out at the top.
The smart investors analyse trends and take the long-term view, ‘cost averaging’ an investment strategy to ensure against any adjustments in the market.
Try ignoring articles that don’t make financial sense and resist automatically going along with ‘popular thinking’. Aim towards thinking with clarity and not with fear or misaligned, irrelevant and short-term data.
Do not let FEAR dictate what you do next. Instead, observe clearly the facts and trust your instinct and experience to do what it is you feel is the right thing to do. If fear is in control of your next move, you are already in a weak position. To be successful in anything you need to think clearly and make informed decisions that are right for you and your investments. Learn from the mistakes we all inevitably make and don’t let the negativity of others put you off your plans and objectives.