“Aim to land on the moon but if you fail and only hit the stars, its far better then staying on ground zero.”

Like any successful business operators, you are only as good as your support team that you have around you, especially those in the front line.  Listening to and responding to all the questions and queries they field, daily weekly and monthly.  Understanding what is in the consumers thoughts, stresses, pressing issues and concerns not just in the investment market but life in general, it’s a difficult job but one the team does successfully day in day out.

Over recent times though they have noticed a significant spike from consumers regarding all the speculation and conjecture in the financial world with regards to Royal Commission and banking reforms.  The constant theme and questions they are raising are these;

What impact will the changes have to the property market?
Is the property market going to crash?
What are the risks and threats to them and their existing portfolio?
What do they do next, do we buy, sit or sell?
How will this impact on their borrowing?
What opportunities are there in the investment market?

These are all seriously good, genuine questions and concerns raised and asked by the general public to the team, who in turn ask me.

Without trying to dismiss peoples questions and concerns presently expressed or over simplify or dramatize my answers, I advise this;

What Australians are enduring presently is just another cyclical change both in the property market and the financial sector. If we want to look at the rich history of Australia, this is an ever changing and evolving occurrence that usually takes ten to twelve years to fully evolve and go its full term and circle, but guess what it just starts again and again.

Yes there is banking reforms happening, some dramatic and some not but the banks are still lending just not as liberally as they have in the previous seven years.

Yes the property market is correcting in the states of NSW & VIC as they have traditionally done for over a century before they plateau for a period then start to grow again in value. Yes there are a plethora of opportunities in Australia presently and not just the property market, you just need to know where to look and what to look for.

No the banks are not our enemy nor the devil, yes they have done wrong and are being punished accordingly for it with record fines and disciplinary action. 

No the property market is not going to fall by 50% or greater. 

Our greatest risk and threat to us actually is staring at you in the mirror, it is us!! Always has been.

All too often we procrastinate and find excuses because that’s the easy way out of having to make hard decisions and at times sacrifices to realise what we want in life.

To be frank, we have had 11 prime ministers, three financial reforms to the finance sector, two recessions, the GFC and four major property market corrections since 1970, yet here we are in 2018 and truly what has changed for you personally?

We are a forgiving society by nature, our national debt is about the same in comparison to the population it was in 1970. The banks survived all the enquiries and inquests thrown at them, yet we still utilise them primarily and regularly. We recovered stoutly through the recessions and GFC and property prices have increased from a national medium point of $18,000 to over $500,00.

All too often people allow outside influences well beyond their control to dictate and dominate their lives and their decision making. Procrastination and fear are both polarising and paralysing to many people and their financial wellbeing. There is always something occurring in the economy that they can use as an excuse not to try and forge ahead.

Like I say, our biggest threat in Australia, is not the government, not the political and financial reforms nor market corrections, it is quite simply us and our state of mind.  Quite simply if you do not invest for your future no one else is going to, not even our government.

I know my point of view is harsh and direct but it’s a matter of fact.  I finish with an old saying “Aim to land on the moon but if you fail and only hit the stars, its far better then staying on ground zero.”

This article was written by Steve Smith of Residential Property Investment In Australia (RPIA). Steve Smith is the Managing Director and Founder of RPIA. He’s also the author of the very successful book “Residential Property Investing in Australia”, which has helped hundreds of Australians create true financial freedom. Visit the RPIA Website

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

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