POV: NOW IS NOT THE TIME TO PANIC

I started in real estate in 1988. A year later, interest rates were pushing 17–18%, and in some cases even higher. The property market was brutal. I was only 20, but what I saw during those years has stayed with me throughout my career.

One story in particular. In 1989, I sold a beautiful old weatherboard home in Mt Evelyn to a schoolteacher named Judy. She was a single mum who had worked incredibly hard to save around $40,000 and bought the home for $110,000. I still remember how excited she was when she collected the keys.

Less than two years later, everything had changed. Interest rates had risen dramatically; her mortgage repayments were costing more than she earned and her savings were gone. Eventually, Judy made the incredibly difficult decision to sell. We sold the property for $75,000. She lost everything she had put into it.

I’ve never forgotten that experience. BUT there’s another part of Judy’s story that has stayed with me just as strongly. I sold that same house again in 1996 for $250,000. Again in 1999 for $540,000. It sold in 2018 for $1.2 million. Today, I estimate it would be worth around $1.5 million.

Why am I telling you this?
Because after almost four decades in property and seven market cycles, I’m seeing something familiar. When conditions become difficult, it is very easy to believe they will stay difficult forever. They don’t.

Victoria is undoubtedly challenging for property investors right now. Costs are higher, interest rates are putting pressure on households and confidence has been tested, but Melbourne also has something incredibly important: people need somewhere to live.

We have an undersupply of quality rental properties and strong rental demand. Over time, those fundamentals matter. That doesn’t mean property values will suddenly surge tomorrow. Property has always been a long-term investment, and I believe patience is particularly important in this cycle.

For me personally, I’m holding my properties and focusing heavily on rental performance and yield. My message to investors is simple: Don’t let a difficult moment automatically become a long-term decision. Naturally, if you are under financial pressure, seek appropriate professional advice and understand your options, but if your investment remains sustainable, consider the long-term fundamentals before deciding based purely on today’s conditions. I’ve watched markets rise, fall and recover many times, and one sentence tends to come up when the cycle eventually turns: “I wish I’d held onto that one.”