Well I am not sure how many of you are sitting in the same boat, but to be honest the 2018- 2019 financial year has been one of the toughest I have ever seen and experienced in the Property Market. This sentiment seems to be echoed by Real Estate Agents in Perth, both new and experienced as well as developers who have struggled to either bring stock to the market via pre-sales or just move stock in general. Declines amongst many suburbs have been in the double digits and only a handful of areas providing gains on their overall averages.
A declining market is always part of a property cycle. It is typically those that decide to sell in this market that has negative returns, some choose to sell due to circumstances eg. Loss of job or relocating and or Fear and emotion that the market will continue to fall. Those investors who are aware that this decline is normal and will pass, hold stock until such time as a recovery occurs thus to minimise or mitigate any losses. After all property investing is generally a longer term investment strategy. But don’t be under any illusion that this is an easy thing to do! Property investing is about a few key elements and they include, the numbers, emotions and mindset.
That being said Perth’s Property Market has now been in decline for over 4 years. Topped with the mining downturn, then a Royal Commission and oh let’s throw in an election, where the fundamental ideals of property investing were threatened, there was really only one way it was going to play out.
So with all of these factors now in the past and with lowering of interest rates, Government incentives for First Home Buyers and as well as Banks indicating they will relax the lending criteria’s. We feel that these changes along with increase in confidence, signs that stock levels are declining, sales slightly increasing and population growth occurring and rents increasing. The outlook for the 2019- 2020 financial year is definitely looking brighter and more optimist for sellers and property owners.
As with any end of a year and a new beginning I enjoy taking this time to reflect on things that I am grateful for, things that have worked in Business and Family Life and look at doing more of these things in the future. I also use this opportunity to create new goals in my life that give me a purpose to continue to strive and try new things. As well as also focusing on the things that didn’t work and working out why they didn’t work, what leanings have I achieved from these and how they have and will serve me moving forward?
Reflection Without Learning Is Dangerous.
On a lasting note – One of my mentors many years ago shared this saying with me and I have applied it many times in my life. It is when you are thinking things are tough and you are stuck in a rut. Have faith and know that this too shall pass! Nothing is eternal unless we make it eternal.
Wishing you all a wonderful, exciting and prosperous 2019- 2020 Financial Year!