Thursday, September 1, 2016

If you think house prices always go up….. think again

Take a look at this graph…..

houseprices

To be sure – a good investment but like all investments prices fluctuate and:

  • you have to live somewhere so if you cash up there is no return unless downsizing or going to a lesser cost market;
  • Geography then – as usual – matters! Even recent recent Auckland rises have been offset by falls elsewhere;
  • its close to impossible to “time” this market with any accuracy such that you make market beating returns

Like everything else – no free lunch – there is risk and reward….. you are NOT the exception, you have to use your scone.

(Thanks to David Farrar for the chart)

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