Many investors think that it is simply impossible to accurately predict when and where booms are imminent. In fact, a precise prediction seems to be so risky that some investors refuse to buy properties anywhere, unless a price boom is already underway – and that could be true. prove extremely expensive.
Many of us buy lottery tickets. Although we do not know who will win, we know that a person must do it – and that this lucky person could be us. The concept of luck is also found in the real estate market, and many believe that investors who invest quickly in fortune are very lucky.
John Lindeman, writer, educator and commentator on the real estate market and director of Property Power Partners, said that waiting for a "moving" sector to remove a risk, he introduces others. even more dangerous.
"For example, the economic boom could be over and recent buyers might discover that they have far exceeded the market value in the suburbs, where prices are falling and no one wants to buy," says -t it.
"Knowing the causes of booms allows us to predict the effects. If we know for sure what is causing the periods of strong expansion, recession and slowdown in the real estate market, we can confidently invest in fast-growing areas and easily avoid the suburbs where prices are about to fall. "
The good news is that we can make such predictions about the effects with confidence if we know what makes them happen in the first place, he says.
"Certain types of events can cause dramatic changes in prices and rents. The former are natural events, such as droughts or floods, and the latter are market-related events, such as the retiree boom, "says Lindeman.
"Each of these events results in predictable changes in local prices and rents. Thus, knowing where and when they occur, we can identify the location, intensity, and duration of price and rent changes that will result. "
In the current issue, Lindeman examines each of these points and sees how we can predict the unpredictable.
To learn more about how to predict the unpredictable, read the full feature article of the June 2019 edition of Your Investment Property magazine.
Available at Coles news agencies and supermarkets from May 9 to June 5 or download the magazine now.
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