On Property Podcast

What Is The Mid Cycle Slow Down And How Might It Affect Property Prices?


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The mid cycle slowdown is a point where asset prices around the world are priced in and we start to get a wobbly market. We can also identify some potential trends and effects it has on the Australian property market Book a Free Strategy Session - https://onproperty.com.au/session/
0:00 - Mid cycle slowdown introduction
1:14 - What is the 18-20 year cycle
4:17 - The difference between a mid cycle slow down and GFC style event
6:05 - Why it is important to know about the mid cycle slow down
7:23 - After the mid cycle slow down does Brisbane historically do better?
12:01 - This is just one indicator of many you should look at before investing
12:51 - How can we take advantage of the mid cycle slowdown to move towards financial freedom?
16:14 - Then overlay your strategy on top of these cycles
19:07 - Using timing the cycles to reduce your risk significantly
21:11 - Ben's personal investment strategy
22:53 - Look for these 3 things when investing in an area
24:01 - Brisbane is cheaper to buy now than it was 10 years ago! WTF?!
25:29 - Reducing your downside risk so you can achieve financial freedom
26:54 - Stop trying to get lucky in order to achieve financial freedom
28:26 - Looking at what you can control in your investing and life
31:37 - Next steps if you want to start investing
Phil Anderson's Book: The Secret Life of Real Estate and Banking - https://onproperty.com.au/thesecretlifeofrealestateandbanking Fred Harrison's Book - https://amzn.to/2SYV5De
Transcription:
For those of you who haven't heard about this concept of the mid cycle slow down, it's effectively these points that we've been in for about the last six months where asset prices around the world are fully priced in and we start to get a bit of a wobbly market. Maybe it's a stock market, maybe it's the crypto market, maybe it's the property market. So today's video, Brian and I are from on property. You're going to explain exactly what that is and Ryan just going to ask me a couple of questions about it.
Yeah, so Ben has always yammered on about the mid cycle, slow down and about Phil Anderson and the 18 year cycle and always recommended me his book. And given that it's only an audiobook format, I still haven't read it even though I should, but I know that we're entering into this time in the market where it is what [inaudible] would call a mid cycle, slow down. I don't know as much about it as Ben does. So I thought it would be a good chance to ask Ben some questions, get some ideas on what exactly is a mid cycle slow down and how does it affect markets? Because I know me and knew Ben have had conversations off camera about how Brisbane tends to do well after the mid cycle slow down, whereas Sydney and Melbourne tend to do well before the mid cycle slows down. So we'll talk about that sort of stuff as well. So do you wanna start by talking about what is the, I don't know, 18 year cycle and how does a mid cycle slowdown and fit into that? What are the other parts of the cycle?
Yeah, so the cool thing about the world and the property market's economies, businesses, governments is they all work in these cycles. Sometimes things are good and going up sometimes seem to bad and they're going down in every single asset in the world runs in a cycle. Now some guys like Warren Buffet and Ray Dalio save it is, you know, seven to 10 years. So I called some other people like Phil Anderson and Fred Harrison's. Say that there's a, you know, more 18 to 20 year cycle, which is effectively just two of the Warren Buffet, 10 year cycles in play. Now all it is is effectively we have a recession or a great depression or a GFC all like the 1990 [inaudible] recession. We had to have all the great depression and a lot of the money leaves the marketplace and things get really, really, really cheap and depressed. And then what happens is governance around the world and bank ...
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On Property PodcastBy Ryan McLean

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