Never lose focus of the long-term trends

[Longterminvestor]

Economies rise and fall, fashions come and go but one thing is certain, the worldwide population continues to rise and there will be an ever-growing need for accommodation. The UK is a perfect example of where short-term concern is impacting property prices even though the long-term trend, whether the UK is part of the European Union or outside, dictates that more accommodation will be required.

Let’s not forget, UK governments have been shortchanging the property market to the tune of tens of thousands of new build properties per year. There is inbuilt demand for UK property which will take many years to fulfil.

 

[nmb]

Those who are able to maintain focus on the long-term potential for any investment, in this instance property, are the ones who are more likely to make good returns. Trying to trade property in the short to medium term is very difficult and similar to catching a falling knife - you may get wounded!

 

[lookinginvest]

How long is a trend? The shorter the trend upon which you base your decisions the more risk. What would you deem to be an acceptable length of time to see a new trend emerge?

 

[nmb]

This will vary from market to market but I think you can say a new trend has emerged only after a period of six months or more. When you bear in mind that property markets often close down during the festive and New Year period would you count a slowdown during this time as the emergence of a new trend? Be careful trading on short term price movements!

 

[PostBrexitInvestor]

Timing is of the essence with any investment although if you maintain a long-term focus on the UK property market there are many reasons to be confident. A growing population, the fourth largest economy in the world and constant underspend on newbuild properties. Is this not enough to instil some confidence in the longer term?