Thanks for the articles. Since I have become a client, your insights have certainly made me more aware of what gets reported in the media. Once upon a time I used to read and analyse everything that was written in the media so much so that I would stress and worry about things I had no control over. Any property article I used to analyse but feel so dejected because it was always about increasing house prices. While they are high, I am no longer focused on reading media reports but instead turning my energies into making things happen for me. Anyway keep up the good work. I wish I had become a client so much long ago.

So so true. Excellent!!!!!!!!!!!

Hi Matt,

Thanks for the articles. Whilst I agree with your general sentiments, however, I must point out that I believe residential property in particular is a very different beast.

Whilst passive index funds may work for many asset classes, in Australia, it is extremely difficult to invest in residential property in anything other than an 'active' manner. And even real estate based index funds (such as XPJ) cover only a very small and specific aspect of investment grade real estate stock, biased very strongly towards retail assets (thanks to the size of the Westfield portfolio) and to a lesser extent office/commercial property.

Also I noticed on twitter you provided a link to a ProSolution report. One of the key elements they talked about with residential property was active nature of property investment (ability to renovate, subdivide etc.) that set it apart from other asset classes. In this context I believe it makes sense to undertake research into the market in order to try and pick properties that are likely to 'outperform' the general market. A truism in property investing is that you never buy the median value for a suburb, only a specific property.

So whilst I agree noone has a 'crystal ball' to accurately predict the future price moves, I believe due diligence, market research and growth predictions form an important part of developing a successful 'active' property investment portfolio.

Cheers.

This issue with the banks is the age old marketing question of who their customer is - is it the account holders or share holders? Most companies will try and strike a balance because they understand the relationship between them e.g. happy customers means more shareholder returns etc … but the banks lean far more in favour of the share holders!

Until they become customer centric then there is no way they will be building products that meet customers needs – I mean seriously, what the $&*@ is an excess transaction fee??? It’s my money you idiots!

cracker articles and love the artwork on the whitepapers - they look mint!

Not going to disagree that residential property is a different beast Andrew which is why we refer our clients on to property advocates such as those listed on our "Links" page. It essential that when one is investing a substantial sum of money into a single asset, expert advice is sought - especially when the rules of trade aren't clearly defined (i.e. some real estate agents are slippery characters); always best to have someone who understands how the market works on your side of the table.

A tad harsh. He's hardly alone in incorrectly predicting the rate rise that never occurred.

@anonymous - not really harsh, he gets paid for this and puts his name out there as an expert ... so he is fair game.

cracker articles and love the artwork on the whitepapers - they look mint!