The one concept that brings everything into perspective
With this year's turmoil on stock markets and continuing instability in property values, anxiety could easily affect the decisions in terms of capital and income in 2020. Although the catalysts for each recession are special, the COVID-19 does not vary this year, the economy and stocks will ultimately rebound. In this sense , it is important to note one main concept when investing to keep things in perspective: time horizons.
Think in the long run, amid short term bubbles
One of the main things people are advised by the world's greatest investors is to invest with long horizons. The investment in land is no different. Certainly, in recent years, there have been circumstances such as strong increases in home values in Sydney and Melbourne. However, it's important to bear in mind the long-term price trend so that you can fit your goals.
Value of property
Capital growth is one of the main reasons why you should invest in real estate, particularly if your investments are negative. The estimated annual growth rate for assets in capital cities with strong access to utilities, jobs and infrastructure is 7 percent. In addition, the general rule is that land values double per ten years. Although this is a strong reminder that the land is a long game, in the last 10 years the Australian property demand has not fully doubled.
In a 2016 CoreLogic report, the combined average improvement in capital city home prices was 23.2 percent over the five years through 2016. This growth rate indicates that, while the real estate averages an upward course, the old measure of property that doubles every ten years, particularly in Australia, might not be applicable.
Volatility is not an incentive for rash decisions
Given the current economic instability in the country, the recent downturn in Australia's fast rise in house prices and declining rise in incomes, you might feel afraid of the future for the markets. History has proven that countries rebound from recessions and Australia, amid the problems we are facing at present, would not be different.
Looking where you want to be financially as the next recession rolls along will help you see your finances and savings in the long term. In addition, think about how your financial history will work into the next ten years for future generations.
There are several books on long-term investments that put the financial ambitions in mind. If you feel confused about where to proceed, think about reading one of the books or talking to a financial planner.
Note this article is not financial or legal advise. Please check with your financial and legal specialist counsel before making any decisions of your own.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle and Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au