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It's a really good idea to have a strategy that can work even in a declining market, especially given the current conditions of the Australian property market as a whole. Is there a strategy where you can achieve financial freedom even investing in a potentially declining market?
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0:00 - Introduction
0:30 - You don't WANT to invest in a declining market, you want to protect yourself from risk
1:40 - We have to admit that yes there is risk of a decline, but there are also chances of the market growing
2:18 - The strategy is…positive cash flow properties
3:18 - The reason positive cash flow properties can work even in a declining market
4:46 - What about rent going backwards?
7:27 - Positive cash flow properties pay themselves off and when you own it outright that cash flow becomes yours
10:03 - It's so important to do your market research
11:09 - You want to purchase a property where you can manufacture growth
11:47 - Given the current market it's important to have a strategy that can work if the market goes backwards
12:50 - Something I love about this strategy
15:12 - I lean towards metro markets at the moment over regional markets
15:48 - What you can do if you want to explore this strategy more
Recommended Resources Mentioned In This Video: Positive Cash Flow Is Underrated - https://www.youtube.com/watch?v=08oBO2C-5_4 Advanced Suburb Research - https://onproperty.com.au/research/ Australian Property Bubble Interview with Steve Keen - https://www.youtube.com/watch?v=brX18YrTPTY
Recommended Videos: 2 Properties To Financial Freedom - https://www.youtube.com/watch?v=Pj8gLiDEz8Y
Transcription:
When investing in property, given current market conditions, it's a really good idea to have a strategy that can work even in a declining market. So even if the market goes back for a period of time, you can still make money and you can still be successful and you can still achieve financial freedom. So in this episode I want to talk about a strategy that works even in a declining market. Hi, I'm Ryan from on-property, helping you achieve financial freedom. And I just want to say from the outset that this is not me recommending that you, that you invest in a declining market. Obviously we want to invest in property that is going to grow. We don't want to go out and seek properties that are going to go backwards in value. I'm sure there's sound strategies out there that can be really successful and make a lot of money from properties going back in value.
But that's not what I'm talking about. I'm talking about, given the current market conditions, a lot of people out there are nervous to invest because I feel like the market may go backwards for a short period of time. Sydney and Melbourne definitely look like they're going to go backwards. Brisbane, we're not so sure about it looks like it may continue to grow, but obviously there's the chance that Sydney and Melbourne can drag down the entire Australian property market as well as changes with appro. Making it harder to lend could have an effect as well as potentially a global recession could affect the market. So is it possible to invest knowing that there's these risks out there, but we can still make money even if this worst case scenario does happen? Because we have to admit that yes, there may be a risk of the market is declining, but also there's the potential for markets growing as well.
So it's up to you whether you decide that you want to invest or not given current market conditions, but there's a lot of people out there that realize that the market may still grow, especially somewhere like Brisbane that's hardly grown over the last 10 years, kind of has more potential than maybe Sydney or Melbourne, which had the big booms. So there's a lot of people that may want to invest because they can see ...