Property

There’s no doubt that Donald Trump is running his campaign like he runs his business. I’ll show you how in just a minute. Firstly though, the point that I’m illustrating here is purely economic and not political. I have no opinion on US politics, other than that of an armchair observer. But I hear too often people say that “you need to have money to make money”. I think that’s false.

We get a lot of questions coming in about the Sydney property market. There’s no doubt the market price growth has slowed in the past few months. But this is off a very high level. We see more price moderation in 2016, the difference between savvy investors and everybody else is how they respond to this environment.

I’ve been back in the office for a couple of weeks now and I’ve been bombarded with the same question – “what do you think of property prices?” My response is simple – “I don’t know and it doesn’t matter”

“Hey did you hear that 70% of investors think the housing market is going to crash…” A friend of mine on the phone yesterday. These were his exact words.

As an investor, one of the things I look closely at is interest rates in various countries. We’re fortunate to live on an island continent in Australia, but our fortune is tied to the global market.

One of the most important events last week was the decision by China to lower interest rates, again. The decision got pretty much no attention in Australia. We were all too busy watching the Rugby World Cup! It’s probably one of the most important things for every single Australian investor to be aware of, probably bigger than the RBA this week.

Warren Buffett once said “predicting rain doesn’t count, building arks does” He was referring to the importance of investing over the long term in quality, not just following what the market does. I think it’s a fantastic point, short but direct to the point.