The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.
In this series of short 3 minute videos, Ahmad Imam and I discuss the common mistakes I’ve seen investors make.
Today we discuss what an X-factor is and how you can prepare for it.
As the saying goes, you should always ‘expect the unexpected.’
Watch today’s video as I explain why…
Some of the points we discuss:
- An X factor is an event that comes out of the blue, that was unexpected, which could be local or overseas that undoes all the predictions and all forecasts you had made.
- a new X factor comes up every year, sometimes the positive and sometimes the negative - so it is something that property investors need to be prepared for.
- Some recent X factors included:
- The election of Donald Trump and the initial uncertainty created and the world economic uncertainty that has followed with the trade embargoes and the like.
- Couple of years ago the Chinese economy unravelled affecting many countries including Australia. For years the booming Chinese economy supported Australia's strong growth, and all of a commodity prices plummeted affecting Australia’s exports.
- 2011 there was a debt crisis in Europe that came out of the blue
- Almost a decade ago, the sub-prime crisis in the United States led to a Global Financial Crisis and the worst depression we had almost a century.
- 2007 the RBA increased interest rates 3 times and put a halt to our rising property markets
- Looking back further there was a dot.com crisis in the early 2000’s and an Asian Financial crisis
With thanks to Michael Yardney's PropertyUpdate.com.au