Shares were up at the end of 2016, normally that spells the death nail for property… or does it? Brett explains why it can still be a great year for property investors despite the doomsayers stealing headlines. More importantly he explains how to make 2017 great.
Hey, guys. Brett Alegre-Wood here from Gladfish Property Investment. Property search? Think Gladfish.
Okay, so what I'm going to cover today is, The Dow closed the highest it has the whole of the year, which is great news for share investors. And the normal thing is that when the share market is doing well, the property market is doing crap, and that's what a lot of people are saying. You are going to hear that all through this year I imagine if the share market does well. Now, the interesting thing is, it's absolute rubbish to some degree.
There is the major macro cycle that you can look at, and at that level, yes okay, certain asset classes perform better at certain times. But actually what you need to be doing as an individual investor, and I'm not talking about a multi-billion dollar institutional investor, I'm talking about you as an individual, as a mom or dad, as a professional city mayor, and looking to, “Where should we put our money?”
What you need to do is get local. Okay, it's one of the key things here. Get local, research local and invest local. And when you do that, if you pick the right area there's no reason you shouldn't make money now, next year, or the year after. But that does mean that you're not going to be investing in the same area all the time. The area is going to change over time because what you want to do is get in before everyone starts calling it a hot spot, and when you do that, yeah, that is the time when you can sit back and then you watch the papers start calling the place a hotspot. And that's the time if you want to sell, to get out. But for me personally, I'm a long term long-term, buy and hold guy. Yeah.
And the reality of that means, I want to buy well at the start and I want to hold it for a long term. So I want a buy with the best fundamentals. So what I'd say is, don't just go for what people are calling the hotspot or what you think is going to be the hotspot if the fundamentals aren't there.
I want long term solid fundamentals. Okay, so the next point that I want to make is this, whether you're investing shares or property, you're looking to make a return. So you've got to make that work for you, and so it's not just about looking at the area and picking the area.
It's about picking the particular investment, doing the numbers, getting to know the numbers. And that's whether you're doing shares, whether you're investing in an actual company, whether you're doing dividend yield investing, whatever it is, whatever strategy you decide. In our case, we obviously look at property based investments and opportunities.
So whether that be hotels, residentials, commercials, all that sort of stuff, that's more the thing that we do, and that's what we can help you with. But the key here is, yeah, look at the market and what the market's doing, and pick the strategy that's right for the market. And then secondly, go in and find the investment that you're going to hold for the long term, hopefully, buy below value which should be a great thing, okay, and if you can't buy below value, then make sure the fundamentals are so goddamn good that it is going to go up in value. Okay. All right guys, have a great day.
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