Episode Details

What's ahead for our property markets in 2022?

Even though the situation is improving, there will clearly be continuing issues with Covid 19 affecting our local economy in the new year.

And the socio-political problems that plagued the world over the last few are unlikely to disappear.

Yet most analysts and economists agree that our property markets should perform strongly in 2022.

But the markets won't be the same – capital growth won't be as strong as we experienced last year, and we are likely to end up with a two-tier property market.

So, what lessons can we take from 2021 to make you are a better investor in the new year?

Today I plan to share 21 lessons from 2021 with you, in the hope of making 2022 a better year for you.

Lessons from 2021 to carry into 2022

It's been an extraordinary year, hasn't it?

Looking back to this time last year, we thought we had this Covid "thingy" licked didn't we, but look what then transpired.

Nobody could have foreseen all that's happened, including the coronavirus, its economic fallout and the way our lives changed.

But as we head into 2022, I can't help but reflect on what Australia as a country has accomplished and what I've achieved personally, what I've overcome, and the lessons I want to carry with me into the New Year.

1. Expect the unexpected

Every year an unexpected X factor comes out of the blue to undo the best laid plans – sometimes on the upside (like the miracle election result in mid-2019) and sometimes on the downside like Covid19 in 2020.

But the biggest risk is what no one sees coming, because if no one sees it coming no one is prepared for it and if no one is prepared for it, it's damage will be amplified when it arrives.

2. Focus on the long term

The strong performance of both our property markets and our share market showed us to ignore the numerous pessimistic property predictions by the so-called "experts" - don't make 30-year investment decisions based on the last 30 minutes of news.

3. It's the media's job to entertain you – not educate you

Remember… it's the media's job to get eyeballs on the advertisers' content, rather than to educate you.

And unfortunately, being overwhelmed with misinformation led many people to live in a state of fear and anxiety and caused some to make disastrous investment errors.

4. Take economic forecasts with a grain of salt

If you're reading something frightening in the business section, or hearing it on TV, or learning about it from your neighbor, it's almost certainly too late to act — because the information is already reflected in the market – in either the share price or property prices.

5. Don't believe the Doomsayers

Last year, in 2020 at the beginning of the pandemic, the doomsayers found their moment and told us how our property markets would crash – they were wrong of course.

Don't let them stop you from achieving your financial dreams – the doomsayers are always wrong, at least in the long term.

6. No one really knows what's going to happen to the property markets

So as a real estate investor, while it's important to have mentors, make sure you're listening to somebody who has not only built their own substantial property portfolio but someone who has kept their wealth through a number of cycles.

7. There is no such thing as the "Australian property market."

Local factors have always driven property market performance.

So, avoid paying attention to commentary that gives broad generalizations about the Australian property market or even the Melbourne, Sydney, or Brisbane property markets.

8. Don't try and time the market

Rather than timing your investment purchase