Expert Bust #22 Adapt to New Phase

Every few years I hear marketing gumf from some investment experts along the lines of:

“You need to adapt to the new phase in the cycle. What worked in the past won’t work now.”

I'm yet to find a case in the last 40 years where capital growth hasn't "worked" for property investors.

But imagine you're a professional operating in a specific patch and that patch is peaking. Now you need to manage expectations of clients regarding growth. Rather than say:

"Buy elsewhere using the services of someone else"

Instead, they effectively say:

"Use my services, but don't expect any growth, you need to adapt"

But there's always somewhere good to invest for growth...



Over the last 20 years, there's only been about 3 years in which double-digit growth wasn't happening in any of the 4 cities shown.

The chart would have been too "busy" if I showed the top 20 significant urban areas over the last 40 years.

There's no need for investors to adapt, all they need to do is change "where" their focus is.

 

There's two questions in your poll but assume the first one is the one you're seeking answers for?

Also really enjoyed your PICA video the other week!

 

Would love to see this graph with Adelaide, Canberra, & Darwin added.

It still blows my mind that Hobart has had the best capital growth 2000- 2019, if someone had predicted that to me back in 2000, I would have shown them a graph of the historical unemployment rate for Tazzie vs the rest of Aus, and told them it wasn't possible!