Buyer’s Remorse

I recently experienced buyer’s remorse.

 When the COVID crisis began in Australia I went to the bank and withdraw enough cash for walking around money, just in case it was needed. How wrong could I be. Cash was far from in demand in a contact free pandemic and the money languished in my wallet for months. When my mower broke down and I was standing in the local mower shop discussing a repair, the conversation came around to the option of buying a new one. 

On Saturday afternoon, a deal was offered for a trade in on the old mower and a cash price for a new one. I went with the new mower and even though mentally I knew that was the right decision, some part of me still felt like I might have gotten a better deal if only I had waited. And that was just for a mower, so I began to understand the way some people might be feeling after agreeing to invest substantially more for a property in the current market. 

 Along with general gloom in mainstream media and the broader community, this pandemic has brought opportunity. 

 The successful decision makers are looking at time frames well beyond current events.

 For too long risk has not been adequately factored into investment decisions with yield compression regardless of the quality of the asset, covenant, tenure or location. That has now changed. 

 Quality it all its aspects will be acutely appreciated, and rental growth and capital growth, in the most popular locations, are an inevitable consequence.