5 Important Property Lessons for 2012

To ensure you don’t get burned in the coming year and to give you a chance to make the most out of our changing property markets Michael Yardney, CEO of Metropole Property Strategists, and one of Australia’s leading property experts shares some important lessons he has learned from previous cycles.

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

http://propertyupdate.com.au/5-property-lessons-for-2012.html

“Probably the most important lesson we can all learn is to never get too carried away when the market is booming or too disenchanted during property slumps. Letting your emotions drive your investments is a sure-fire way to disaster”, says Yardney

5 big lessons :

• Lesson 1 - Booms don’t last forever
• During a boom everyone is optimistic and expect the good times to last forever, just as we lose our confidence during a downturn. Our property market behaves cyclically and each boom sets us up for the next downturn, just as each downturn paves the way for the next boom.
• Get prepared for the next phase of the property cycle. During the last cycle, most investors didn't really have their downside covered or their upsides maximized.

• Lesson 2 - Beware of Doomsayers
• Fear is a very powerful emotion, and one that the media uses to grab our attention.
• Some people miss out on the opportunity to develop their own financial independence because they listen to the messages of those who want to deflate the financial dreams of their fellow Australians.

• Lesson 3 - Follow a System
• Smart investors follow a proven system to take the emotion out of their decisions and ensure they don’t speculate.
• Investors without a system find themselves in financial trouble when the market turns.

• Lesson 4 - Get Rich Quick = Get Poor Quick
• Real estate is a long term investment yet some investors chase the “fast money”. Patience is an investment virtue.

• Lesson 5 - It’s about the property
• Smart investors make educated investment decisions based on research and buy a property below it’s intrinsic value, in an area that has above average long term capital growth and then add value creating some extra capital growth.

You can also view Michael Yardney’slatest video blog here:-http://propertyupdate.com.au/video-market-update.html