By Damian Will, Sales & Marketing Manager, Novus Group
Most property experts we speak to give the same advice - when it comes to making investment decisions leave your emotions at the door.
This is sage advice for the most part, however how realistic is it to make big money decisions without any emotion?
At a recent presentation from Property Commentator, Gavin Hegney, who presented the above graphic, it got me thinking that of course there will be emotion involved. Always.
Humans are emotional beings, and are prone to making decisions based on how they feel. So it makes sense to understand the common emotions felt during a typical market cycle and to use this knowledge to help better understand market sentiment and timing your investment or development accordingly.
It would be fair to say that most Perth investors have been in despondency and depression for some time - however, with economic indicators for WA looking positive for the first time in a long time, most experts agree that the current market sentiment is 'hope'.
While this means we have now passed the point of maximum financial opportunity, it is still a great time to be thinking about developing property.
There are still plenty of people out there who are unfortunately ill-informed and not yet feeling that hope within the WA market. This means you still have time to pick up land in premium locations for a less than premium price.
And, if you factor in construction times, you could be releasing a new product to market as we embark on a steep upward trend, with people feeling optimistic and excited and willing to pay top dollar for a brand new home.
So take a moment to review the emotional cycle, think about where you have been, where you are now and where you think the market is at. And if you are like me, you will see the opportunity for maximum profit is now.
If you would like some help assessing or finding a property to develop, give us a call on (08) 9240 6020 or get in touch online today!