Property Post GFC
November 11, 2011
WHAT ARE INVESTORS DOING?
Hey guys, the Global Financial Crisis flattened the economy, wiped profits off superannuation funds, property prices dropped – some investors are forced to sell up.
Here we are in 2011, with our property portfolio trying to anticipate what will happen next in 2012.
- Rents are not keeping up with rising costs
- Capital growth used to double every 7 – 10 years, it is now flat or dropping.
- How do we manufacture capital growth and manufacture extra cash flow?
Many investor groups are suggesting consolidation, so I developed a spreadsheet that doesn’t rely on capital growth any more, but cash flow. Although there are many promoters of Cash Flow properties, I wasn’t one of them, I was of the Capital Growth persuasion. Now I have had to abandon this idea of living off capital and realise that there is only one good type of property – a property with positive cash flow.
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