Have you ever caught yourself wondering why the property market seems to be either skyrocketing or plummeting?
It feels like everyone’s either raving about booms or fretting over busts, right?
Well, here’s the less dramatic truth: most of the time, the property market isn’t doing much at all; it’s just quietly ticking along.
But don’t let that fool you—because it’s during those rare, other times—maybe about 20% of the market cycle—that things really heat up or cool down, and these are the moments you need to be ready for.
When opportunities knock…
I remember chatting with an investor who snapped up some regional properties during the 2022-23 boom. Her portfolio’s value soared initially, but lately? Things have plateaued.
What’s behind this change?
Simply put, the market’s mood shifted.
When the market is genuinely surging, even your bad property choices get papered over.
Think about a renovation project that’s lagging three months behind schedule.
In a hot market, that delay might inadvertently boost your profits thanks to rising property values during the wait.
These are golden times for flippers and renovators – the rising tide truly lifts all boats, and your renovation skills become the turbocharger on top.
But these windows don’t stay open for long.
.…And when to brace yourself
Conversely, there are those times when even a textbook-perfect project can bleed red.
Take 2020, for example. A friend of mine wrapped up a stunning renovation right when market panic hit and COVID hit.
Despite his best efforts, by the time he sold, his expected profits had vanished—not due to any missteps on his part, but simply bad timing.
Embracing the boring middle
But realistically, for the bulk of the time, we’re neither in the boom nor the bust; the market is neither soaring nor crashing—it’s just being its regular, predictable self.
During these times, (which are most times), the best strategy is simple: keep doing the fundamentals – invest in quality properties, in solid locations, and take a long-term outlook.
Let capital growth and inflation gradually erode your debt, and consider refinancing to capture equity growth and buy another property.
It’s not the stuff of blockbuster movies, but it’s a strategy that quietly delivers results.
Reading market cues
So, how can you tell what the market’s up to?
It’s booming when real estate agents are too swamped to take calls and ordinary properties fly off the listings in days.
It’s stumbling when doom-and-gloom headlines dominate, and properties linger unsold.
Most of the time? We’re just cruising in “normal” gear—where steady, tried-and-true tactics outshine the rest.
This means your investment strategy needs to be time tested and one “that has always worked rather than one that’s just working now.
At Metropole, we deliver strategies that have stood the test of time and have been fine-tuned over the last five decades by our found of Michael Yardney and that we have been using to deliver outperformance for our clients for the last 26 years.
We’re much more than just another Buyer’s Agent. We help you safely create intergenerational wealth through property.
We’re big enough to tip the scales in your favour, but small enough to care.
Click here to book an obligation-free complimentary Wealth Discovery Consultation to discuss your options.
Over the years, we’ve helped thousands of Australians safely build intergenerational wealth through strategic property and wealth advice.
This financial freedom has given them more choices in their life.
