Monday, October 3rd, 2011
Recently American economist Harry Dent spooked a lot of Australians when he predicted an economic tsunami that would take property prices back to levels we haven’t seen for over a decade. Others say that our resources boom and housing shortage will ensure that property values keep doubling every decade.

Who’s right?

Michael Yardney, CEO of Metropole Property Strategists, and one of Australia’s leading property experts says, “It’s easy to sound smart in a property boom - but you have to be very careful who you listen to at this stage of the property cycle. There are some interesting challenges ahead.”

Read more about what Yardney has to say on this subject in his latest property market update :

So who do we listen to?

Our economists are armed with all the research available in today’s information age, but still can’t agree on where our property markets are heading and many still get it wrong.

Yardney says, “The fundamentals are easy to monitor. Things like population growth, supply and demand, employment levels, interest rates, affordability and inflationary pressures. However one overriding factor that the experts have difficulty quantifying is investor sentiment.”

The main take home points from Michael Yardney’s latest update are:

1. Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behaviour of an unstable crowd of other investors. While the long-term performance of property is influenced by the fundamentals, its short term performance is much more affected by market sentiment.

2. Booms never last forever, neither do busts. Don’t be surprised when they come around and don’t overreact. This will help you avoid being sucked into booms and spat out during busts.

3. Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions.

4. Recognize that property is a long term play and set up financial buffers to help you ride the property cycles.

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

Contact Profile


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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