Are You Holding Off,
Waiting For The Market To Crash?
The media love a property crash story.
Any time an ‘expert’ claims the market is about to crash, they run with it.
Some people actually get excited, thinking it’s their chance to get in.
Other people think the world’s ending, and they ‘knew it’ the entire time.
But the question is, will it actually happen?
‘Rich Dad’ (Robert Kiyosaki) has claimed our market is going to fall 40%.
And he’s been making this claim for 25 years now.
A prominent economics professor from Sydney made the same claim 20 years ago, and still insists he’s right.
He even sold his apartment in Surry Hills in Sydney in 2008 for $526,000.
The median price today is $1.4 million.
Is A Market Crash Coming?
No, it isn’t.
Despite the sensationalised headlines in the media, our market is not going to crash.
Here’s a way to look at it.
If house prices fell 40%, would you buy?
Of course you would!
You’d probably buy if they went down 20%.
Even 10%.
And so if they went down 10% and we all rushed in, they’d go back up again.
See?
Economics 101.
House prices won’t crash because if they did, we’d all buy and they’d go back up.
Sorry, It’s Not Going To Happen
People have been waiting years, even decades waiting for house prices to crash.
But it won’t happen.
Take a look at the market going back to 2010.
Small drops, followed by long rises.
Even Covid couldn’t stop it.
CBA announced in 2020 that house prices could crash by up to 32%, warning of a “prolonged downturn.”
Property prices surged by over 20% in that timeframe.
But what makes the Australian property market so resilient?
Why Is Our Market So Crash-Proof?
There are three main reasons it won’t happen.
- Overwhelming immigration means demand for houses is through the roof. More people needing houses means the price goes up.
- Supply is critically low. We’re only building 4 out of every 5 houses we need. And we’re expected to be more than 260,000 houses short by 2029. The less houses there are, the more they cost.
- The government wants house prices to keep rising. Higher house prices mean more tax.
So listen.
You might want house prices to crash.
You might hate the outrageous cost of houses these days.
Especially if you’re trying to get in, or you’ve got kids who will struggle.
I hate it too.
But no matter how much you WISH house prices would fall, it’s not going to make it happen.
The people creating the most wealth at the moment are realists.
They know the fundamentals and act on them.
Without the emotion.
They’re not sitting on the sidelines hoping for prices to fall so they can swoop in and pick up a bargain.
They know it’s not going to happen.
They know that houses in the right areas are going to deliver strong growth and rental income.
And that there’s a process you can do over and over again to become wealthier and wealthier.
Here’s How It Works
You can’t wait for a crash which isn’t coming.
You could wait a decade or more.
And then pick up a house for a small discount, if you’re lucky.
Meanwhile, prices have more than doubled and you missed out.
If you started out with $120,000 and used it as a deposit for a $600,000 investment property, at 7% annual growth (which is the long term average) it’ll be worth $1.2 million in 10 years’ time.
Pretty nice, right?
See why there’s no point waiting for a price fall which will probably never happen?
The sooner you get into the market, the sooner you’ll create wealth and start replacing your income.
It’s all about time IN the market, not necessarily just ‘timing’ the market.
The good news is you’re invited to spend some time on a Google Meet with one of our Senior Property Wealth Planners to show you how this works.
They’ll help determine your ability to replace your income by investing in real estate.
They’ll map out an overview of what you should do, and when.
Show you how many properties you could invest in right now if you choose to.
And of course answer any questions you have.
There’s no cost for this either.
We do it in the hopeful expectation that if you decide to invest, you’ll ask us how we can help you.
No obligation, no pressure.
First things first.
Enter your details below, and we’ll contact you to book in a time.