Property Makes A Good Wealth Hedge

You’ve probably woken up this morning a little confused. The USgovernment has been downgraded from a AAA rating to AA+ over the weekend. Every newspaper or media outlet you read is talking about financial markets mayhem. One minute you are hearing about higher interest rates, the next there is confident talk they will be slashed. The Aussie dollar has fallen more than seven cents from its high last week to have traded as low as US$1.0378 in this morning’s markets. The local sharemarket is off more than 10% in recent days. Media commentators are working themselves up into hysterics about how Australia is hurtling towards recession. All this turbulence is probably doing your head in.

One surprisingly resilient store of wealth during financial market turmoil tends to be Australian housing.

Compared to shares, this was certainly the case during the 1987, 2002-03, and 2007-08 equity corrections, when local share prices plummeted by 44 per cent, 15 per cent and 50 per cent, respectively, and cruelled the retirement plans of so many Australians who were ‘overweight’ this risky asset-class.

Read more on this article from The Property Observer here.


About davidcutlerproperty
David Cutler is a highly successful sales consultant at Gary Peer Caulfield. David provides clients with six star service customised to their individual needs. From formulating marketing strategies, through to completing contracts, he is diligent, dedicated and highly motivated to achieve the best results. His growing base of happy clients is testament to his ability to develop strong relationships based on mutual respect and integrity. When he is not busy selling property David spends quality time with his young family. And when time permits he also enjoys on and off road cycling and is an avid fan of rugby union’s Springboks.

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