{"id":143832,"date":"2025-03-22T20:30:00","date_gmt":"2025-03-22T09:30:00","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=143832"},"modified":"2025-03-22T11:08:55","modified_gmt":"2025-03-22T00:08:55","slug":"50-years-of-valid-reasons-not-to-invest","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/50-years-of-valid-reasons-not-to-invest\/","title":{"rendered":"52 years of valid reasons not to invest"},"content":{"rendered":"

Have you noticed?<\/p>\n

There will always be someone telling you not to invest in property.<\/p>\n

In fact, there are many commentators already telling you why 2025 is the worst time to buy property.<\/a><\/p>\n

But that's nothing new.<\/p>\n

Sure we have headwinds that our housing markets are going to contend with and many Negative Nellies are telling us that the property market is going to slump becuae Trump's tariffs are going to create problems, while others cite the large number of properties coming on the market for sale as a problem and yet others are concerned about our local economy.<\/p>\n

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Note: <\/span>Over the years there has always been somebody telling us why property investment should be avoided.<\/p><\/div><\/div>\n

There have always been those telling us to avoid investing in the housing markets, despite all the positives that investing in real estate can offer over the long term.<\/p>\n

Just look back to 2008 when we were working our way out of the Global Financial Crisis, a number of commentators suggested that property values would not increase in Australia for another decade.<\/p>\n

Well, they\u2019ve been proven wrong, as owners of well-located properties in most of our capital cities and many of our regional centres have enjoyed substantial growth with the value of their properties doubling and then doubling again.<\/p>\n

Then look back five years ago at the beginning of Covid when most of the bank economists warned that property values would plummet 15% or more.<\/p>\n

Instead, the total value of all the residential real estate in Australia increased by $2 trillion over the subsequent 2 years (more than it had in the previous decade) as the value of most Australian dwellings increased by 20% during the pandemic, and some even by 30%.<\/p>\n

And then in 2022, we moved into the next phase of the property cycle -\u00a0 the adjustment phase where property values fell in many locations, but we didn't experience the <\/span>housing market crash the property pessimists predicted.<\/p>\n

Instead, we experienced a short sharp property downturn that bottomed out at the beginning of 2023 and the property values started rising again.<\/p>\n

 <\/p>\n

\"Crash\"<\/p>\n

Then the property pessimists were out again telling us how the fixed rate cliff will lead to real estate Armageddon.<\/span><\/p>\n

Now I know at times their arguments seem to make sense, but history has proven them wrong.<\/p>\n

The average price of a home in the major capitals of Australia has just kept going up and up.<\/p>\n

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Tip: <\/span>Think about what your parents have paid for their house.<\/strong><\/p><\/div><\/div>\n

Who wouldn\u2019t want to buy their parents\u2019 home at the price they paid for it?<\/p>\n

In 1978, my parents paid $25,000 for their house and took a 30-year loan from the bank to pay it off.\r\n\r\n

<\/div><\/p>\n

About 25 years ago my mother sold that house for more than $600,000 and she had done little to improve its value.<\/p>\n

Today it would be worth more than $2.5 million.<\/p>\n

Yet over those years, there have always been plenty of ready excuses on offer to put off investing in property.<\/p>\n

A few of the excuses I could have used over in the past<\/span><\/h2>\n