Weekly Success Tip

Timing Is Everything – Property Clock

It always amazes me that in any single industry, there are businesses that are winning and businesses that are losing. There are multi-millionaire rubbish collection businesses and broke rubbish collection businesses. There are multi-millionaire accountants and there are broke accountants. There are multi-millionaire real estate offices and there are broke real estate offices. It doesn’t matter the industry, there are businesses winning and businesses losing. Therefore, it follows the industry or vehicle that you choose has little to do with your success.

What may be more important is the current trends or timing in any industry.

This week's success tip comes from Mr. Positive Cashflow Property in Think and Grow Rich In Property:

"What I like about the Australian Property market is that different states and cities go through growth cycles at different times, giving investors the opportunity to diversify their portfolios around the nation. We’re able to use the varied growth cycles in the separate states and cities to always be investing in a market that’s positioned for growth."

Understanding The Property Cycle Clock

Boom – This is the ceiling on market growth within any normal cycle. Its length is roughly six months and its corresponding psychology is euphoria.

Slide – After the expansion is over and the ceiling has been reached, property will slide in value by five to ten percent. This usually goes for a year and is accompanied by denial.

Trough – Property markets will flow above the Consumer Price Index (CPI) at a rate of three to four percent growth. This can go for up to five years and the matching psychology is fear and desperation.

Opportunity – This is a risk market but also an opportunity market. At the bottom of the economic cycle there are small sale volumes but great value buying. This lasts for about a year and the corresponding psychology is capitulation.

Value – The market indicators are easy to read and they point towards growth, which is already happening with more certain to follow. This lasts for three years and the general feelings are of hope and optimism.

Hot – The expansion occurred and all buyers are believers. This is a fantastic market for selling but a poor one for buying. It lasts for a year and the psychology is excitement and thrill.

ACTION STEP:

Scan your local media for real estate commentary and consider where your state/city is in the property clock cycle and research where the current opportunity is.

Remember, timing is everything and my final Think and Grow Rich Property Entrepreneurs Conferences for 2009 are almost all ‘sold out’.

Secure your seats now at: www.TGRProperty.com.au