Investing pre internet era was by todays standards operating with a blindfold on. The ubiquitousness of the net has certainly empowered many but not necessarily made them any smarter. When I observe the newbies coming into property investing I'm surprised at their narrow approach and impatience to get in the game. I've often said there's a new game in town. The rules have changed and what was a doddle in the past is more like a complicated climb up a sheer rock face today. Without proper preparation the failure rate will rise dramatically.
So what lies ahead? Ross Garnaut's recent presentation offers some clues as to where and how Australia might handle the coming economic challenges.
Garnaut kindles hope for post-mining economy
His presentation has direct implications for the property investor.
- …if a housing boom is getting in the way of easing because of risk, it is appropriate to raise the risk rating of housing for capital adequacy purposes.
***There are salad days of economic policy, when ordinary policy looks good and good policy looks celestial.
***And there are dog days, when good policy looks ordinary and ordinary policy diabolical.
***I said that we were then in the salad days but the dog days would come with the end of the resources boom
Another MB article with ABC 24 interview with Dr Nigel Stapledon adds emphasis to the lead post. You can watch and read it here
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