What would you do if you had $1 million to invest right now?
What would you do if you had 1 million to invest right now?
Buy a house?
Invest in the stock market?
Keep it in the 1% interest bearing account? Boring...
I think the advice from most independent financial advisors would be to sit tight as the property market may see some losses and the share market is extremely volatile at this point. Yes, most people will take the boring option.
So, if you flip that situation around to having a $1-million-dollar property you want to sell what would you do?
Well most people are doing nothing, just sitting, and waiting. Why? what are they waiting for? The market to possibly drop by 15% and turn the million-dollar property into a $850,000?? Now it is important at this point that I say that I am not offering financial advice, simply case studying the opinions of the many market experts offering outcomes similar to or worse than the above scenario.
In times of change and volatility people often do nothing and sometimes not doing anything can be the worst thing to do.
No one could have foreseen what has occurred over the last few months and nobody can predict what will happen moving forward. We can look back at previous patterns and statistics and compare but ultimately it is unknown and only time will tell.
For what it is worth my gut feeling is that there is going to be some tough market conditions ahead.
It is pretty safe to say that in the short term prices are not going to increase. Most pundits are predicting losses and possibly for a prolonged period.
Most agents will talk up any situation of course and I am no different when it comes to selling property. But as a professional real estate agent I can’t control the property prices, only use my skills to help my clients achieve the best outcome no matter the market conditions. Simply put there is no point hiding behind the reality of the Covid – 19 created economy.
We have had a strong local market with big gains over the last 3 years across all sectors of the market. If we were to look at now as a peak in the market, then should we ask? Will we retract? and how long will recovery be? I will offer some bullet point thoughts and then leave the topic as food for thought as everyone has differing opinions and this is just my thoughts.
• Blue chip property will always be blue chip property.
• House and unit markets can move differently
• Supply and demand impacts outcomes
• Buying and selling in the same market can neutralize impact
• Opportunity or threat? Depends on which angle your looking from…