The Value of Stability
Wednesday 09 Oct 2019
Given all the disagreements, disturbances and division we are seeing around the world at the moment I think the one thing most people would probably be prepared to agree on is that, whilst it might not be very exciting, there is actually great value in finding, delivering and maintaining stability. It’s a great reminder of why so many people continue to open the door to investing in residential real estate.
Sure the residential real estate market does fluctuate. Absolutely there are no guarantees of automatic growth. We have just experienced the reality of a market correction which has undeniably hurt many who had grown accustomed to regular double-digit returns. But already we are seeing the reality that is the resilience of property.
As I said last week I don’t believe we are on the cusp of a booming property bubble. What we are seeing is gradual growth and I think that’s a good thing. Buyers are returning and are prepared to purchase with an understanding that values will rise, albeit more steadily than had been experienced over the last decade.
And our clients are reassured that steady growth will deliver sustainable returns. In a world where extremes are becoming the everyday to be able to invest in a market that demonstrates considered, constructive and solid returns is highly desirable.
I think we have become very conscious of the impact of global events on our domestic economy.
There is no hiding from the fact that international economies and domestic markets remain incredibly susceptible to the growing uncertainties that are emerging in response to the various trade negotiations and political disruptions around the world. Every day the stock market seems to bounce like a rubber ball on the back of Twitter tirades and policy postulations.
Meanwhile wages growth in Australia has been negligible so our clients are more determined than ever to ensure their hard-earned savings are invested safely. In that environment the attraction of the residential property market is clear. Property predominantly plods along delivering nice rental returns and healthy value growth.
It may not be exciting or worthy of headlines but I’ll take it.