'Sentiment' is a key part of any investment equation, somewhere between 'demand' and 'supply'.
Within the property market , maybe more than any other investment class, 'sentiment' has a large impact over any final figure.
The 'property market bubble' has been largely built on 'sentiment' over the past five years, especially in the buy-to-let property sector. For many traditional landlords and property investors there was no real investment logic within rising property values since about 2002/ 2003.
Many properties were been bought at values that didn't meet any investment logic I could understand, but the positive sentiment towards property was so strong that many landlords bought in anyway.
"Property never goes down in value, does it !?"
The 'property pop' happened ,and now the media is fueling a nations thirst to follow the newly adopted national 'sentiment', for depression and falling house prices.
As with all media feeding frenzies, they follow the national sentiment and give viewers what they want - this time round it's news of bad times, depression and recession.
As the country self -flagilates, we, alongside the media are in danger of driving property prices down harder and faster than they should really go.
So what should you do when a nations seeks to harm itself through negativity?
Maybe its time to slap the nation across the face and tell it to pull itself together and cheer up.
Remember the media gives us what we want, so therefore if we start asking for some good news maybe the media will start to find us some.
Come on landlords cheer up or you know what will happen.
Let's start to get some positive 'sentiment ' back in the property market.
"Go property market" "Yeh" "Go team landord" (sorry about the poor attempt at recreating American positivity - sorry.)
Sunday, November 23, 2008
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