EP 034: Is the Property Market Crashing? With Goose McGrath

Alright… This week I have a part 2 of the interview with Goose.
(Our property specialist)

It appears his views and opinions on the last email and podcast ruffled some feathers.

I actually can’t remember the last time I had so many people reach out to disagree or tell me why we are wrong. 😕

I did find this interesting though…

When I asked someone who disagreed with us:
“How did they form their views?”
And, “What evidence do they have?”

They either didn’t reply or pointed to some article on some news site.

They didn’t really have their own opinions.

They were just repeating things they had heard elsewhere.

What is more surprising…

I actually doubt they looked any deeper than reading the article’s headline and maybe the first paragraph…

Anyhow, here is my recommendation:

If you want to be successful in business or wealth building, it’s critical to form your own opinions.

There will always be someone who disagrees with you and someone who agrees with you.

Take the time to do the research and make informed decisions for yourself.

In this week’s episode:
○ Are we headed for a recession?
○ Where are the opportunities?

Prefer to listen or watch?

You can hear Grant and I discuss these topics in more detail on the podcast
Click here to tune in: https://linktr.ee/businessandinvestingcom

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WHAT HAPPENED

Are we headed for a recession?

As it stands today there is a large amount of economic uncertainty.

Wars, inflation, interest rates, energy costs, supply chain lines…
(the list goes on)

I can’t actually remember the last time we had so many contributing factors creating uncertainty.

While no one has a crystal ball and I can’t give you a guarantee.

I will share my opinion and how I’m playing the uncertainty.

My opinion.

Yes, It’s likely we are going to have a recession.

All the signals I’m looking at say the economy is slowing down.

However, I believe that we will get through it.
And, good times exist on the other side of it.

This is not an end of days type of thing.

The issues we face today will be solved.

What am I doing / What have I done to prepare for a recession?
(If and when it comes)

1 – Strong cash buffers in my business, personal life and investments.
If a storm comes I want to be able to weather it.

I won’t tell you how much buffer you need but, if you can’t survive at least 6 months without any income then you might want to consider raising your buffers.

Personally, my buffers are over 12 months.

2 – Keeping my books up to date
I’m paying very close attention to the performance of my business.

Especially profit margin.

In a rising cost environment, it is easy for margins to get compressed and profits to shrink.

3 – Staying on top of bad debtors
Self explanatory.

4 – Prepare to seize opportunities if they come.
I have funds ready to deploy should an opportunity arise that fits my strategy.

***Please note this is on top of my buffers.

Side note…
If a recession does not come, is the above list really a bad thing to do anyhow?

How you run your business in the good times will be a sign of how it runs in the more challenging times.

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WHAT HAPPENED

Where are the opportunities?

Right now there are many people who are not acting rationally.

They are acting emotionally and from a state of fear.

Think of it like this…

If someone truly believes the world is headed for economic collapse, then they will be willing to sell assets for anything they can get today VS getting nothing in the future.

They “believe” the assets will be worth less in the future and want to avoid that loss.

You can see a good example of this when the pandemic started back in 2020.

When the pandemic hit many investors pulled their money out of their investments.

They believed the market would keep dropping.

They wanted to get anything they could for their shares before it dropped lower.

It was peak fear and acting on emotion.
Not logic.

I’m certainly seeing quite a bit of that today.

Here is the thing to think about…

For someone to sell something.
Someone else has to buy something.

Who did those panic sellers sell to back in 2020?

Someone acting more rationally.

The people who bought from those panic sellers made an absolute killing across the next 12 months.

These are the Warren Buffet “Be greedy when others are fearful” moments we hear about.

I was one of those people who bought from a panic seller in 2020.

I bought a house in NSW from a panic seller and it went on to be one of my best investments.
That property has ended up doubling in value.

How I wish I could go back in time and buy more!

Anyhow, my point is…

Across our lifetime there are going to be times when great assets are going on sale.

You need to set yourself up to capitalise on those opportunities.

By the way – this doesn’t just apply to investing either…

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UPCOMING

Be on the lookout…

Later this week I am going to be releasing an episode about “how to earn more?”

I get this question a lot.

Many of the business owners I meet want to invest more into wealth building, but they lack the income to do it.

I want to give you my process for earning more from your current business.

DISCLAIMER:
All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision.