Expert Bust #22 Adapt to new phase

Every few years I hear marketing from investment experts along the lines of:

“You need to adapt to the new phase in the cycle. What worked in the past won’t work now.”

I’m yet to find a case in the last 40 years where capital growth hasn’t “worked” for property investors.

But imagine you’re a professional operating in a very specific patch and that patch is now peaking. You need to manage client expectations regarding growth. Instead of saying:

“Buy elsewhere using the services of someone else”

Instead, they effectively say:

“Use my services, but don’t expect any growth, you need to adapt”

But there’s always somewhere good to invest for growth…

Over the last 20 years, there’s only been about 3 years in which double-digit growth wasn’t happening in any of the 4 cities shown.

The chart would have been too “busy” if I showed the top 20 significant urban areas over the last 40 years.

There’s no need for investors to adapt, all they need to do is change “where” their focus is.