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

hit the nail on the head

 

logically this is the way to go, however most investors get caught up in the spin that property doubles every 10 years, in other words losses are rectified if you hold long enough.

I personally see this as either lazy, not strategising or not managing your investment, but it's easier for most investors to buy and do nothing.. go figure

 

Short: 1.5 - 2.5 years.
Medium: 2.5 - 8 years
Long: 8+ years

 

So roughly:
short < 1 state election cycle
medium <2 state election cycles
Long > 2 federal election cycles

 

I believe everyone will try their best to buy at the bottom of the market. However, I think it's not always easy to pick the bottom. As long as I buy well with good potential, I don't worry too much about the short term gain / loss.

I am not old enough to hold my properties for 20 years but my parents always hold properties for more than 20 years and on average the property value increases 10-15 times in 20 years time. A good example is the one they bought in early 90's when the value of commercial properties dropped a lot. The one they purchased dropped 10% in the first 3 years but after 22 years today it values around 11 times the purchased price.

 

Sydney median house price $10-15 million in 20 years time? Do you really mean that or is your statement qualified in some way?

 

Since Sydney is near its peak, you definitely can't buy now in Sydney and expect 10-15 times growth in 20 years time.

The example I provided was in early 90s where the commercial properties dropped 40-50%. If you buy well at that time your long term growth can be huge even there is a short term loss.

 

My interpretation is Long term = multiple property market cycles, Mid = 1 market cycle and short term is trying to get in and out at the right time for a quick win, my interpretations are purely based on a CG strategy as that is what I am planning (Long term CG for around the 21 year mark until I retire.)

 

But it makes sense to do both

 

But if you had a choice to make your investments work faster, retire earlier and reduce risk, rather than sit back and watch and wait, which would you prefer?

Will give you an example from my own experience, I started property investing in 2001, I have jumped into 6 boom cycles to date at the early stages of the rise, not at the bottom, this is the indicator when markets start to move as I believe its far difficult to pick the bottom. I ended up retiring by 2007. So if you jump in and buy in early stages of the rising market as many as you can and then sell down some prior to the bust cycle then you have a nice combination of increasing equity, increasing cashflow, reducing debt and its also makes it easier to source finance moving forward.

We are now in a different world its called APRA not (OPRAH, she has long gone bad joke). If you don't manage your cash flow and keep accumulating you may find you will struggle and perhaps not even able to continue investing. This will hold you back/slow you down. That is why strategizing is so important, more so today than ever

See below, the cycles I jumped into.


Boom cycles
Perth 2001-2007
Melb - 2008 GFC
Syd - 2012 still going
Perth - 2012/13 - 2014
USA - 2011/2012 - still rising
Melb - 2013