What is Counter-cyclical Investing?

Real estate has always been a risky market. At any given time, property value can be grossly undervalued or inflated depending on the mood of buyers and fluctuating interest rates.

Emotions and sentiment often factor into decision making which accounts for some random fluctuations. At the end of the day, property will always be worth what someone is willing to pay for it which is why many savvy property investors employ a counter-cyclical approach to buying property.

Counter-cyclical investing basically involves operating independently from market trends. Rather than selling at the first sign of trouble or reacting to a slight upturn, counter-cyclical investors look to learn from previous cyclical patterns rather than getting caught up in group hysteria or sentiment.

Counter-cyclical investors can capitalise on the reactionary nature of others who panic at the first sign of downturn and look to offload their assets at bargain prices.

Though some troughs and peaks are longer than others, markets, including property, will always ebb and flow in cycles. This is where a little bit of patience, rationality and opportunism can go a long way for investors.

In any sort economic climate, concrete assets such as property are invaluable investments if handled effectively. If worst comes to worst and another financial crisis hits, far less vulnerable than stocks, property will always hold substantial value. A counter-cyclical approach to the market could be the way to make the most of your investments.

Property Investing in Perth

If you are keen to get into the property investment market but are unsure of where to start, getting the right property investment advice is essential. To find out more about property investing, speak to the experts at Rass Global Investments..

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