2024: Planning For Prosperity
By Bailey Compton 15 Jan 2024
If you’re reading this article, you’re likely involved in property. The property market has resembled an arable landscape for almost a decade. It was once said that we would experience one boom every 10 years, yet we’ve had two in the last decade. Despite predictions of doom during COVID, the market thrived. Additionally, the rental crisis not only made rent rolls profitable but also valuable. Good agents must have felt as if they struck gold in Ballarat in the 1850s.
Like the various gold rushes Australia has witnessed, one thing is certain – every rush comes to an end. The signs are out there that the marketplace is diminishing, The banks aren’t lending, and the buyers are taking a long time to make decision. Furthermore, because of discussion around affordable housing, Gen Y and the millennials are pumping their money into their health and experiences, not investment.
Despite the housing crisis, prosperity is still available. Leverage predicts that real estate sales will continue to surprise us until the middle of 2025. The rental crisis will still let us build an asset. Leverage believes that, by the middle of 2025, government interference will cause a massive adjustment in the market. This adjustment won’t necessarily mean prices will drop; it’ll be more about how the public behaves toward property purchases. We might even face a worldwide recession, but it won’t be as bad as the Great Depression. Hopefully, it’ll be the end of the bean counters controlling our everyday life.
In our business, we’ve called this year the “Year of Joseph,” referencing the biblical story of Joseph and his technicolour dream coat. What’s less recognized is Genesis 41.17, where Joseph interpreted dreams for Pharaoh. Joseph advised Pharaoh that his dream indicated seven good years followed by seven bad years. He suggested preparing for the famine while taking advantage of prosperity. They built a bigger grain shed and stored some grain to deal with the famine. This meant the Egyptian people could live through the famine before the next prosperity came. Pharaoh and Joseph understood that failing to plan means you need to plan for failure.
Leverage believes this is the time to prepare for famine. This may mean different things for different people. For some, it might mean cashing up and saving money for those rainy days. For others, it means renovating your business for diversification or making yourself recession-proof. The property industry is a fantastic playground for alternatives. Unlike the Office of Fair Trading, we believe there are so many different opportunities for diversification. Moreover, recessions don’t mean good agents will fail. Even during the GFC, the metropolis continued to grow in price. This time, we have so many different means of selling, buying, and leasing properties that if you prepare your business for a downturn, you’ll have an opportunity to make that downturn profitable.
Always keep in mind Isaac Newton’s theory of relativity, which states, “Every reaction has an opposite reaction.” In part, this is a warning that every action you take in life has an outcome. If you mistreat somebody, the reaction you achieve may be adverse. Conversely, a good deed will often have the opposite reaction of good faith. This is the year for action! Failure to act means that when the famine occurs, you’ll go hungry. Businesses that take positive, direct, and regular action will not only survive but will grow while others decline. Those who are astute, disciplined, and well-planned will thrive during the prosperity we have for the next year and a half and succeed when the market is pivoting.
This is a year for action! It’s a year where you need to affiliate with people who can plan, direct, and provide you with the ability to take advantage of the marketplace. We’re in a great year, but remember the words of Joseph – great years must not just be enjoyed; they must be used to continue enjoying while others face famine.
Wishing you a great and successful year. Leverage is here for your training, protection, growth, and to grant you the opportunities your discipline deserves.