Have We Turned The Corner? (column)

Olly Newland’s Column, August 2010

The news from the front seems to be doom and gloom these days if we go by the articles and news that get pumped out by the media.

Olly Newland

But it pays to remember this about the news media: Bad News Sells.

You hardly ever see headlines that say positive things, let alone good news. It seems that it has to be ‘shock and horror’ each time – and the more shock and the more horror the better.

Remember, all the media are jostling for attention and the headlines are designed to catch attention. Therefore — whatever the news is — many times the worst possible angle is portrayed in an attempt to make it penetrate the mind of the readers who are already swamped with messages from all sides.

So it is no different for news about the property market. There is no doubt that the market has slowed but it is not nearly as dead as the media would suggest.

There is always an argument between over-stating the downside and over-stating the upside and it sometimes takes fine judgement to decide which is the more accurate.

I have personally experience several very nasty slumps and very exciting booms both here and in Australia. (Both were costly) These experiences give me some authority to comment (you are entitled to disagree, of course).

I am also sure one day, the unpleasant experiences we have witnessed or endured will pass and we will look back and wonder why many of us were so extremely nervous without good cause.

Of course many people have been badly effected and one has to be sorry for them even if it was there own greed that put them there in the first place. Even worse are the innocent who were duped by dodgy practices or outright theft.

The fact is we live in a capitalist society and financial disasters are one of the hazards of the game.

Done Deals
One thing is for sure. I got my best bargains during downturns.

Crockers rent graph

graph: Crockers

Read the rest of this column

Posted in News & Articles | Tagged , | 8 Replies

8 thoughts on “Have We Turned The Corner? (column)

  1. Hi Olly

    Exemplary report , “Right on the money”

    Like you been there done that & HAVE the battle scares to show.Its taught “ME” to be more astute (Nothing like a Hanging to clarify the mind)
    Probably made me to cautious now.
    We been looking at commercial/retail investments,but the returns the owners expect 5 – 6 % returns
    When commercial moneys from banks at 8.25%.
    The sums don’t work
    So it just stays in the bank at 4.50%

    Any Fool can make money.
    But it’s a “Wise man” that can hold on to it

    Cheers Bill

  2. Thanks Olly

    I agree with your comments and am especially pleased I read the GST
    anomaly for developers as my partner and I are in the process of
    subdividing in order to build our first property. The media certainly
    have a lot to answer for.

    Regards
    Julie

  3. Hi Olly
     
    I agree completely with you that the news reports are always doom and gloom.
     
    My experience in the last month has been that I put my property on the market and had a good offer and agreement on it on the 27/7/10 and it went unconditional on the 5/8/10. It SOLD 9% below its last registered valuation in April 2008 and $62,000 over the registered valuation which was done in September 2008. Very good outcome I think.
     
    Now when you consider the doom and gloom that has been circulated regarding the property market and sales etc my story wouldn’t be possible would it???  To know and write anything about a property market you have to be in it and doing it to have a valid opinion as you are.
     
    In the last 3 months I have watched properties (because of my intention to sell) go on the market and be SOLD in less than 42 days which use to be considered a good market for sellers.
     
    People need to realize if you buy in a high market you sell in a high market and if buy in a low market you sell in a low market which equates to the same if you are selling then buying.
     
    The winner in a low market is he who has the cash to buy low hold and sell on at a good profit when the market turns in my opinion.
     
    I think maybe a lot of information that is written is probably 3 months behind in knowledge as the actual publishing of sales is 3 months behind in being released. Well it use to be could have changed now.
     
    Anyhow just thought I would share my recent experience in the marketplace.
     
    I feel you have your finger on the pulse and enjoy reading your column.
     
    Many thanks R 

  4. Hi Olly,

    Thank you for yet another straight-up, common sense, and experience based article. You are one of very few commentators that I listen to, respect, and base investment decisions on. I take my hat off to you too for continuing to write columns and make your opinions known even in the face of constant self-serving attacks from ‘competitors’ or people with vested interests, it takes guts to keep going (I know, I have the same in my industry) in the face of this and I applaude you for it.
    I used to look forward to your posts on PT until you were unbelievably removed from the site. I will hold my opinions on that back except to say that they made a very big error and lost one of the key contributors.

    Anyway, thanks again Olly, I look forward to your next article.

    Cheers

    Tom

  5. Olly that summary was probably the best effort from you that I have read – Thanks.

    Roger

  6. @Tom – I’m sure Olly wasn’t removed from PT. Like all of us, he’s just choosing where to put his time and energy. Thanks for your comments …

  7. Sorry, I didn’t mean any offence by that, it is what I understood had happened and I thought it was crazy and a real loss to their site. I am very happy that Olly is putting his energy into this site, it is excellent. Thank you. Tom

  8. Excellent thoughts Olly.
    Looking forward to read your next great article.
    Thanks Rhett

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