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Short-term, Medium-term, Long-term - defined???

Discussion in 'General Property Chat' started by Taku Ekanayake, 28th Aug, 2015.

  1. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hi guys,

    I'm constantly reading on here, when speaking in regards to capital growth prospects of a suburb/city, they are described by either short-term, medium-term, and long-term growth prospects.

    Can you guys help me nail down in either months or years, as to what are the periods of these 3 three 'terms'??

    Short-term: ??? months/years
    Medium-term: ??? months/years
    Long-term: ??? months/years

    Thank you for your feedback y'all :)
     
  2. HUGH72

    HUGH72 Well-Known Member

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    Hi Taku
    Thats probably a question with a subjective answer but personally short term would be the next 1-2 years, medium term 3-7 and long term greater than 7 but more likely at least 10 years.
     
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  3. FireDragon

    FireDragon Well-Known Member

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    I think property is a long term investment, for myself:

    short term = 5-7 years
    medium term = 8-20 years
    long term = 20 years+
     
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  4. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    @HUGH72 by the looks of the first two replies from yourself and @FireDragon, you're right, it certainly is widely subjective.
    Could make things a little confusing now…
    Thanks for your comments
     
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  5. C-mac

    C-mac Well-Known Member

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    Hey Taku!

    Nice talking with you at the last meetup!

    I agree with Hugh and Firedragon too.. its subjective especially to the point of your life stage / circumstance. I.e. if you are entering PI for the first time at say 50 your definitions of short/medium/longterm might be different to someone in their 20's with no kids, or someone in their 30's with kids etc.

    Short term for me would be the next 3 years or less. Medium term for me signals going through my first cycle in a city/market im playing in. So, 5-10 years for me. Anything 10+ years, I'd bucket into long term.
     
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  6. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Likewise @C-mac ;)
    True - sounds like there's no wrong answer!
     
  7. bob shovel

    bob shovel Well-Known Member

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    My 3 cents

    Short term 2-3 years, buying at bottom with prices about to rise
    Medium 3-8 buying not quite at bottom, but to best the rush
    Long term >8 and atleast one cycle. But issubjective to conversation. Long term can be up to 20+
     
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  8. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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  9. Chilliblue

    Chilliblue Well-Known Member

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  10. HD_ACE

    HD_ACE Game-Changer Premium Member

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    You are probably going to get every combination but for what its worth my view is
    short term <2
    Medium 2-7
    Long term 7+
     
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  11. Graeme

    Graeme Well-Known Member

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    "A long-term investment is a short-term trade gone wrong!"
     
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  12. The Y-man

    The Y-man Moderator Staff Member

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    About the same

    Short term up to 1 year
    Mid 1-5 years
    Long 5+ (can't think any further - crystal ball not good enough)

    The Y-man
     
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  13. Scott No Mates

    Scott No Mates Well-Known Member

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    The answer lies with the strategy - fast short term growth will affect how quickly you can access additional funds for your next purchase. Long term, we're all dead.
     
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  14. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Short-term: Days to few years (Shares)
    Medium-term: 3 - 10 years (Property+Shares)
    Long-term: Until retirement (Super+Property+Shares)
     
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  15. jins13

    jins13 Well-Known Member

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    short term- Inside the year
    Mid Term- 2 years
    Long term- 2 years plus.

    My personal belief only but I find having goals longer than 2 years is abit difficult and hard to have accountability. Baby steps at a time!
     
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  16. sash

    sash Well-Known Member

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    Might be covered by Bob...but here are my thoughts

    Short term - 12-18 months
    Medium Term - 2-5 years
    Long term - 8-10 years.

    I took a long term view (10 years) to get to my position today.

    There is an old saying"

    "People overestimate what can be achieved within 2 years...yet underestimate what can be achieve in 10 yrs. This theory supports that a cycle is usually 8-10 years....
     
  17. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    In risk management ideally long term is loooong term. 15 to 25 years

    Humans tend to overestimate what we can achieve in the middle term and underestimate same over long term

    I guess that because humans operate in the now, and the concept of delayed gratification is quite new.

    In the agrarian days you didn't expect to plant and harvest in the same season.......

    A season in property terms is at least one ful cycle I my view

    Ta

    Rolf
     
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  18. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    @Rolf Latham I have to be honest, I only started to appreciate the concept of delayed gratification a couple of years back
     
  19. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    In saying this though.. Why wouldn't every property purchase one makes be motivated by the property with short term growth prospects?
    I would've thought this would allow you to access the equity faster, in order to move onto the next property purchase??
     
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  20. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Depends on your strategy and circumstances.
    Not everybody needs quick equity gains and are willing to put down their money for long term pay offs, such as landbanking, looking for a higher return although a longer term.
     
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