On optimism in a year of change

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We have always valued optimism here, but we are surprised to have learned just how powerful it can be. This isn’t new information; the study was done back in the 1980’s by MetLife (a giant insurance company). When you are hiring 5,000 salespeople a year, it is worth knowing what makes a good hire. They brought in Martin Seligman of the University of Pennsylvania, who, along with their aptitude test, added an optimism test to their hiring policies and procedures.? After two years in the job, those that scored higher on the optimism test outsold the pessimists by 31%. What is even more remarkable is that the “super-optimists” (those who scored extremely high on the optimism test but who failed the aptitude test) outperformed the pessimists by a whopping 57% after two years. So why am I telling you all this?

Well, after years of relative pessimism out there it is worth reflecting on how our views shape the market and the opportunities that are available to us. To be successful in property (and in life) there is no doubt you need a little bit of good fortune. By living in Stonnington, the chances are you have already won some type of genetic lottery, being born, or migrating to one of the most liveable cities on the planet. But you also want to make yourself a big target for luck. It turns out that being optimistic about the future does just that. You can imagine the potential positive outcomes far more readily than others, and when balanced with an attention to detail, thorough due diligence, and some fiscal responsibility, creates an incredible recipe for success. Think imagination with a checklist.

This year is going to huge, even if you just consider this quote from Time Magazine:

Globally, more voters than ever in history will head to the polls as at least 64 countries (plus the European Union)—representing a combined population of about 49% of the people in the world—are meant to hold national elections, the results of which, for many, will prove consequential for years to come.

Of these 64 countries, unsurprisingly some of them are of greater international importance, including the US, Russia, the UK, Taiwan and South Africa.? In a world filled with geopolitical instability and relative economic depression, there will be great change. What will this mean for Australian Property? What are prices going to do? As our Director, Luke Piccolo, aptly summarised when we were discussing these questions this week, the answer is that prices are going to go up and down. The trick is to be able to work out where and when. They are really the wrong questions. The right question to ask is: “What am I optimising for?” If a new home for you or your family is on the cards, then finding an agent that can unlock opportunities no one else can in high-demand areas might be the best strategy. If it is short-term returns or a high-yield investment you are after, cashing in on property and finding better asset classes to suit your priorities might be the go in the short term. For a capital growth play in blue-chip locations in price points that continue to go from strength to strength, South Yarra and Toorak are always full of opportunities – you just need to know the right people and expect to pay a premium (whoever buys it off you in 20 years will also).

By starting with the right strategy, you can ensure that 2024 is a successful year, whatever that word means to you. For us, it isn’t just sales and property management success, we value humility, calmness under pressure and treating those around us with respect. We are happy to ask the tough questions, because we know that they are the key to new and better solutions. We value our families, friends and mental and physical health as the foundation beneath it all. The good news is that plenty of studies show that optimism also increases longevity and well-being! “I hope the year has started well” is a common phrase in early January, and we are excited to report that we are off to a cracking start here at Woodards South Yarra (we would say that – we’re optimists). We hope the same for you, and for the whole community we serve.????????????????????????????