How Will The Current Boom End?

propertycycleProperty Investors like to be forewarned so they can be forearmed when the property market moves into the ‘slump phase’ of the property cycle.  The property cycle has a few phases – three most notable for change are:  Boom, Slump, Recovery.  There are more subtle phases too including:  slowing, and stagnant.  Right now on PropertyTalk.com a discussion getting lots of reads and replies is:  How will the current boom end?

A discussion with nearly 4000 views and 100 replies suggests Property investors really do like to be forewarned so they can be forearmed when the property market moves into the next phase of the cycle especially when it’s a coming off a boom into a downward phase.  So what may trigger an end to the good times?

Some of the suggestions put forward in the discussion are: RBNZ/Gov’t policy targeting investors; China recalls capital en-masse, WW3, an Aussie recovery that sees a reversal in migration; another GFC or the current RBNZ/Govt restrictions failing to curb investors’ appetite for additional property purchases.  There are many more suggestions suggested in the online discussion worth a read too.

What’s evident in the discussion is  property investors run their property investments like a business so they’re usually the first to know of a change and first to act to protect their position.  It’s the owner occupier homeowners who don’t have their finger on the property market pulse.  In fast changing times it’s this group of property owners whom are often slow to act and are the most vulnerable.


This blog article was written for PropertyBlogs by Mobilize Mail.

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