Friday, August 19th, 2011
If you’re like most Australians you’re probably confused and little concerned about what’s happening in our financial markets and how it’s going to affect you and your investments.

According to Michael Yardney, CEO of Metropole Property Strategists, and one of Australia’s leading property experts, “Things are probably going to get worse before they get better. It is part of the economic cycle.”

“History shows us that when there has been a stock market crash investors generally lose confidence in paper assets and moved their money into tangible assets such as properties or gold and silver” says Yardney.

“To protect their assets and to be a successful property investor over the next few years, it is very likely that many Australians are going to need to take a different approach to the one they took over the last few years.

Yardney explains his thoughts in his latest property market update, which you can read here:

Yardney explains that in the past every time there has been a stock market crash investors lost confidence in paper assets and move their money into tangible assets such as properties or gold and silver.

The bottom line is that after an initial lull in activity, it is common to see several years of good property performance after a stock market correction.

In the short term Yardney sees the luxury end of our property markets suffering, but the news is better for properties in the middle and lower price brackets.

How did property perform after previous stock market collapses?

“Compared to shares, property performed very well.” Says Yardney.

“You just have to look back a few years to the correction after the GFC when local share prices plummeted 50 per cent, but the peak-to-trough fall in Australian home values was just 3-4 per cent.”

“It was much the same in 1987 when the share market crashed and property values languished for a while before property boom that created fortunes. And let’s not forget the property boom we experienced in 2001 – 2003 after the share boom collapsed into what became known as the “tech-wreck” in 2001.”

What’s going to happen to interest rates?

There are so many factors at play, but it is likely that rates will come down. There is already evidence of this in the markets and a number of banks have lowered their long term fixed interest rates.

You can also view Michael Yardney’s latest video blog here:-

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Metropole Property Strategists helps Australians become financially free through independent, unbiased property advice.

We help beginning investors buy their first property, experienced investors add to their portfolio and sophisticated investors "manufacture" capital growth by becoming property developers.

Over the years the Multi Award Winning Team at Metropole have bought, sold, financed, developed, advised, negotiated for and project managed hundreds and hundreds of millions of dollars worth of property transactions to create substantial wealth for their clients. And we can do the same for you.

We help our clients create financial independence by building lasting wealth through growing a high-performing property portfolio.
Michael Yardney
P: 0419800900


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