Hi ,

One of the things I love most about property is that the government can’t let it fail.

Here’s why:
 
Reason #1. The construction industry is way too important. 

The construction industry is the nation’s fourth largest industry with almost 1 million workers. We all know people whose livelihood depends on construction, right?

No government is going to survive an election if the industry fell over.
 
Reason #2. We need to house people

According to the ABS we grew by 326,100 people last year. A growing population means more houses.

And a house only gets built when there’s a profit to be made.

This is another reason the government needs house prices to stay strong. It’s so developers have an incentive to build and people have somewhere to live.
 
Reason #3. Nobody wants to lose money

Nobody wants to lose money, right?

So if house prices dropped then home owners would be worth less.

Try winning an election when people lose money on YOUR watch ... if you get my drift.
 
Reason #4. People spend the equity

One of the places people get money from is the equity in their house.

The house goes up and people borrow against it. They use this money to renovate, but the next property maybe buy a car and pay off their personal loans and credit cards.

If house prices fell then people couldn’t get their hands on this money. Which would suck a lot of cash out of the economy, with potentially disastrous consequences.
 
Reason #5. Bank stability

One of the reasons our economy is so strong is that our banks are highly regulated by government and strict internal compliance. This I can assure you in my 12 years of working in the banking industry.

They hold security over property which is worth far more than what they’ve lent out.

However, if property crashed the security they hold might be worth less than what they’re owed. They’d be in negative equity territory and that could bring them down. Or at least put the brakes on them. No lending = no economy.

So there you have it.

5 reasons why the government’s fortunes are tied to property, and why they have to keep it going.

Want to capitalise on this?

Then spend an hour with one of our experienced property experts.
 
Click here to book your complimentary strategy session

You’re going to get a personal plan to turn you into a property investor.

Your strategist will show you how to invest with as little risk as possible.

And show where you should be investing to get as much growth as quickly as possible. Which of course lets you invest again sooner.

Even if you’ve got a property portfolio already then come and get a second opinion on your strategy. You might be on the right path, however, you might find a better way to get ahead sooner.

Cheers,

Zaki

P.S. Make sure you book your time now.

I don’t have many advisors on my team.

That’s because I don’t just let ‘anyone’ offer advice to our clients. I have extremely high standards when it comes to your money and your future.

For this reason, the sooner you book the more likely you are to get an early appointment.