Property investments are rarely spur of the moment decisions

Last week as I sat down to write my blog it seemed as if the sky was falling.  The sharemarket upheaval caused the world to shudder and we all held our breath as we waited to see if the tumble would turn into an avalanche.

A week on and things have settled but it’s interesting to look back at the week that was. Most important is the fact that we continued to see clients come through our doors looking to buy.  That’s because property investments are rarely spur of the moment decisions so while events of recent weeks might cause some potential buyers to pause it rarely means the end of negotiations. It just means we have to work harder to help address concerns.

I did find it interesting to read through the week some commentators questioning the validity of property as a ‘safe haven’ during times of sharemarket turbulence. I don’t think that view attributes sufficient value to the long term emotional security derived from real estate.  Just as purchasing is rarely a spur of the moment decision neither is it a short-term decision.  Homeowners and investors are usually in it for the long haul and are therefore better placed to ride out short term price fluctuations.

One report I read this week said ‘uncertainty is not conducive to decision making’.  I do agree with that point which is why a return to property in response to the sharemarket drop might not become evident immediately but I do anticipate an increase in buyer activity as we head into Spring.