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

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

 

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.

 

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

short term = 5-7 years
medium term = 8-20 years
long term = 20 years+

 

@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

 

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.

 

Likewise @C-mac
True - sounds like there's no wrong answer!

 

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+

 

Thanks for your 3 cents @bob shovel

 

My thoughts are similar to @bob shovel

 

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+

 

"A long-term investment is a short-term trade gone wrong!"

 

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.

 

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

 

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!

 

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....

 

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

 

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??

 

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.