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Potential investors forget to take a step back when making investment decisions I was once enlightened with the notion that if two conflicting political parties agreed to reduce their campaign spending equally, the competition would remain just as fierce, yet the savings on both sides could be put to ‘better use’. This suggestion was…
Rental income makes an important contribution to property investment A typical investment is comprised of two money-making components: income and capital. In property, this reflects rent and value. Although both are important, the strongest gains are usually made on growth in value rather than growth in rental income. Rental income makes an important contribution…
Vacancy rates reflect the state of the economy Often when property cycles are mentioned, price growth is at the forefront of people’s minds. Although capital growth is the most important factor for investors, there are many other components of the property cycle that contribute to one’s ability to purchase, hold and successfully dispose of their…
Knowing the Cycle: Supply and Demand Recent articles in this newsletter have focused on the mechanics of the property market and the importance of ‘knowing the cycle’. A recurring theme in the discussion is the message that property is an asset that must be held long-term, through fluctuations in interest and vacancy rates and structural…