What does it all mean?
Hey guys,
Don't get too bogged down in all of the happenings and goings on in the financial markets, to do so will simply scare the pants off you and cause you to take no action.
Supply and Demand...
The single and most important fact right now that you need to bear in mind is Supply and Demand. That supply of property is at an all time low and well below the 250,000 per year required (its about 110,000 this year) and secondly the demand for property is still increasing, when you consider rented property and property for sale.
Sure the demand for property to purchase is at a low because most investors are sheep and follow what the news says. The real investors realise that this is all temporary and that now above all is the time to be jumping at it. Once the markets settle down confidence comes back to the market, everyone will realise that they should have been buying property throughout this past 12 months and over the next 12 months.
I reckon this will be the tail end of 2009 before we are back to normal. That's when a lot of people will be complaining about missing the boat again and that it's all too expensive. Typical, please don't be one of them.
I dare you...
If you don't think that property is the right thing, the only thing, then call up your pension fund and ask for a statement, then compare with this time last year and the year before that.
It's a sad fact that most pensions are already down about 30% on last year. Some more!!! It's what I have been saying for over 10 years now. Having a pension is not the answer, having a portfolio is...
Even if my portfolio has dropped 10% across the board (which is hasn't) I am still better off than if I had a pension. I have a very close mate in Australia who has seen a 40% drop in his pension or around the last 8 years of payments he and his employer have made, it's shocking!!! Hmmm, not a good time for pensions...
A portfolio shouldn't take a huge strain on your time and more importantly, though it may go down in value if you have bought well you will still have equity available.
Live with passion,
Brett Alegre-Wood
PS. I would love to hear about your pension balances and how they are performing. I am happy to keep the names confidential but would love to know the figures. It is scary!!!