2018 in Review with Caifu
2018 was a mixed bag of results for the property markets, although the Royal Commission’s fallout and potential changes to negative gearing, capital gains tax and lending inside super, have dominated the headlines as the year draws to an end.
Both Sydney & Melbourne saw further consolidations in their real estate prices, but some regional areas offered excellent outcomes for those who ventured beyond city limits.
The team at Caifu see much of the same for 2019, where markets will be slower and lower for a longer period of time.
Particularly in the current conditions, many retail investors are worrying right now (with their Buy, Hope & Pray approach). They are worried because they know that for the next 3, 4, even 5 years their portfolio will be stuck. It is not going to grow much at all or even go backwards.
All investors understand the process of creating equity from market growth. In principle, it takes no special skills or knowledge to be a retail investor and to buy a property and wait.
Over the last few years, you could throw a dart at a map in Sydney and Melbourne to some degree and that would have worked. The typical retail approach has been so easy for so long.
The result is that in a falling market, many investors simply don’t know what to do and are worried as a result.