There’s a scene in Monty Python’s satire ‘Life of Brian’ where the protagonist drops a shoe, the crowd following him takes this as a ‘sign’ and everyone holds up one shoe. We’re beginning to think that in the property market life may be imitating art. …..
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Losing the plot for some that have the urge to plunge into action, for fear of missing out, without doing the full diligence on risks vs. returns. Some marketers touting the ‘armchair developer’ method is the way to go; who are they kidding??
Generally speaking you may be right, but the astute investors aren’t the herd, they will no doubt stand a better chance to reap the reward on their skills of reading into their well researched vehicles of investment.
Just yesterday, my accountant warned to steer clear of the property market. Though I do not entirely agree with him, it is clear that returns on All Ords, Indexed Funds, as well as Listed Property Trusts in the long term, i.e. the past 16 years, compared favourably to direct property investment. Obviously he has not owned an IP, I take that into account in his advice.
In the end, the prudent will be rewarded. I would not discount the importance of spreading the risks in different asset classes. And, again, to diversify within any individual asset class (residential, commercial, ownership boundaries, units, houses, inner cities or regionals etc. in property investing alone) to spread your exposure risk to come up well ahead.
So, for the unwary, tread carefully. If not, there will be a definite shift of wealth from the impatient to the patient investors, as Warren Buffet put it so aptly. [smiling]
CT
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