Reflecting on 2023 helps us plan for 2024!

This time of year is the perfect time to plan for the year ahead, but it's also the perfect time to reflect on the year almost gone. Reflecting on your highlights, your lowlights, as well as key take-away lessons helps us to plan for the year ahead.

For me, a lesson learnt, or perhaps it's more of a reminder of what I already know, is to always Expect the Unexpected!

Talking about the Unexpected, let's take a quick look down 2023 memory lane in relation to property...

• The RBA persisted by not taking their foot off the pedal from what they started back in May 2022, with the cash rate now sitting at 4.35%, from a stand-still point of 0.10% - the steepest climb in history!
• Inflation has remained stubbornly high - here in Australia and overseas
• Very recently, we saw inflation with a 4 in front of it for the first time
• Home loan customers got a taste of what it's like to go from a fixed rate of 1.99% to 6%+ with skyrocketing repayments
• We've seen the unemployment rate as one of the lowest in history
• Tenants have been smashed with sharp rent increases
• Many prospective tenants putting up a fight to beat the competition just to put a roof over their head
• Stock levels have remained stubbornly low making it difficult, in some cases impossible, for home owners to secure their desired home

When you consider the above, one could expect the following to occur in 2024 - all things being equal of course...

• Interest rates will settle at the current level, or drop slightly if inflation slides steeper than expected
• Property investors are likely to fall in love with property once again, in light of higher rents (returns) and a continual strong demand from tenants, particularly with the influx of immigrants of around 500k expected in 2024
• Some (existing) property investors will drop off from exhaustion after being bruised by the steep interest rate climb, higher loan repayments, and more compliance to worry about, providing opportunity for new investors to pick up new/more investment stock
• Quality family homes will remain in strong demand, with stock levels remaining problematic in light of the influx of immigrants expected to arrive in 2024

Predictions are plentiful. Economists, and like professionals, will all be reading their tea leaves at this time of year with their own theories and their own predictions for what 2024 will bring!

Truth is, no one knows what's going to happen. One thing's for sure though, today's median price of houses - and units - won't be at these levels 5 years from now, 10 years from now, and they certainly won't be at these levels 20 years from now. Property prices only head in one direction over time, and that's up!

Best advice I can give you is this... don't wait to buy real estate, rather, buy real estate and wait. Also, don't make long-term financial decisions on the last 12 days or the last 12 months of news. Play the long game and you won't lose!

2024 and planning ahead...

When setting goals for the new year, I recommend using a structure/method I started many years ago - which I still use today as it helps me remain focused in all facets of my life.

I call it the four-quadrant goal setting structure/method which encompasses the following:

• Personal (goals relating to your personal life such as holiday destinations, fitness, health, family, friends, and so on)
• Business (goals that relate to your line of work including business and/or career)
• Wealth Creation (goals that relate to your own/family wealth goals with consideration to your bigger picture)
• Personal Growth & Development (goals relating to both mind and spirit, and what you plan to do to ensure you continue to grow as a human)

Consider setting just a few key goals under each quadrant so that it's not overwhelming, and be sure to jot down the reason why each goal is important for you - this is important!

If you're struggling to think of goals to set for next year, be sure to reflect on the current year - consider what's working, what's not working, and what's missing - and there lie your answers!

In closing...

As the (current) year comes to a close, be sure to reflect, celebrate your wins, consider the lessons from your losses, and lastly... be sure to take the time to soak up the joy that the festive season brings with it, as well as to recharge your batteries in order to make 2024 your best year yet!

If property is part of your game plan for 2024, please contact us as we love helping buyers secure their desired property - whether that's a place to call home, or a property to help them secure their financial future.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.