Ignore the noise: Why Your Personal Economy Matters More Than Media Reports

Deciding to invest in property is a big deal. Lots of things can influence your choice, like economic forecasts and personal needs. One major influence is the media, which gives insights, analysis, and predictions about the property market. But it's important to remember that while media reports can give a broad view, relying only on them for property decisions is often a mistake.

The real estate market is not one-size-fits-all; it's made up of many different parts, each affected by various factors. Media reports usually talk about the property market in general terms, but within this big picture, there are smaller, diverse submarkets. Some areas might be growing slowly or even shrinking, while others could be booming with double-digit growth.

One problem with focusing too much on media stories is that you might miss the differences within the property market. What's true for one city, neighbourhood, or type of property might not be true for another. Things like location, property type, local amenities, and specific economic factors in an area play a big role in its growth.

While the overall economy does affect the property market, your own "personal economy" should guide your property decisions. Your personal economy includes your financial situation, goals, and lifestyle needs. No media report can fully understand your unique circumstances, dreams, and investment plans.

Imagine a media report predicts a general downturn in the housing market. This might be true for some areas affected by economic issues, but not everywhere. Your personal economy might show stability or a need for a certain type of property that does well despite broader trends.

Also, media reports often focus on short-term changes, creating urgency and fear of missing out or complacency. They might highlight immediate market shifts without considering long-term growth or the cyclical nature of real estate.

So, how can you make smart property decisions?

1.     Research Beyond Media Reports: Talk to local experts, property advisers, and professionals who know the specific areas or property types you're interested in. Understand the details of the market you're looking at, as it might be different from the general trends in the media.

2.     Align with Your Goals and Finances: Make sure your property decisions match your long-term goals and financial situation. Consult an investment savvy mortgage broker to get a better understanding of your position. Think about things like rental income, property value growth, and your risk tolerance.

3.     Stay Informed but Skeptical: Use media reports as one of many tools in your decision-making process, not the only guide. Keep reassessing and adapting your strategy based on your personal economy.

In summary, while media reports offer useful insights, they often give a broad view of the property market. Your personal economy—your financial situation, goals, and lifestyle—should be the main factor in your property decisions. By understanding the specific details of different markets and aligning them with your personal economy, you can make better property decisions that fit your unique needs and dreams.