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Ben Kingsley Blog post by Ben Kingsley

Will You Remain Confident In A Changing Market?

I want to talk about confidence in a changing market. Now we’ve been very blessed to see property prices has grown significantly over the last several years with low-interest rates and a reasonably OK economy in terms of jobs. But we are going to see that potentially change.

We are already seeing the regulators and the banks starting to see the cost of money growing and that will obviously slow and dampen demand and we are definitely going to see some more supply come on especially in the unit market. Now that’s going to lead to a big media story around a property bubble. And the challenge with that is, it can play with our psychology, the investor’s psychology. If we are going to stay the course, we are going to need to understand why we are going to stay the course. So we need to cut out the media noise and understand why is it that we are investing. Let’s look into our own backyard. Let’s make sure that we haven’t geared ourselves too high. Let’s make sure that our household debt is potentially productive debt and when I say productive debt, I’ve talked about it before. That’s basically using other people money to control an asset to grow higher value. We want to make sure that our discretionary spending is looked at tightly as we don’t necessary want to get out of the market when everyone is panicking. We want to stay in the market.

Property investing is a long term investment.

We just need to ask our parents or our grandparents exactly what they paid for their property, and you can see over time, the property makes for a phenomenal investment. And we will get to enjoy that passive rental income as well as that capital growth over time. So it’s really important to make sure you are not gearing yourself too heavily and that you can stay the course. Cut away that media noise and focus on just maintaining that investment, keeping your tenants happy so you can enjoy when the market does turn again and go to the next up cycle. You are well positioned to enjoy the financial rewards. Thanks for watching.

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