Back in 1990 (my grandkids call that ‘the olden days’!) I purchased an investment property with a business partner. We were thrilled with the great deal we got from our bank -a fixed rate loan at 15% interest for two years! Normal interest rates were around 17% at the time. The property cost $65,500.
We rented it out for many years but then the recession came along. The rent went down along with the value of the property.
We hung on year after year without much change.
Eventually I purchased my partner’s share in 2000 and assumed full ownership of the property.
I held on for another four years (a total of 14 years in all) and sold it for $150,000. The profit was there, but it took a long time to achieve.
With the proceeds, I was able to re-invest in a commercial property that continues to bring in good returns.
The point of my story is to encourage readers to take the long view on property investment (and any investment for that matter). Booms come along infrequently and whilst they are great times, they are not the norm, and quite hard to pick!