Lesson 1 - Time is your friend; impulse is your enemy.
When it comes to investing—whether in stocks or real estate—one principle remains constant: long-term thinking beats short-term reactions. The legendary John Bogle, founder of Vanguard and a pioneer of index investing, made several statements about the stock market that apply just as powerfully to property investment. In the next few weeks I’ll share some valuable insights by John Bogle and how they are just as relevant to property as they are to the stock market
“Time is your friend; impulse is your enemy.”
Buying property is a long-term game. It’s easy to get caught up in short-term market fluctuations, worrying about whether prices are rising or falling in the next six months. But history shows that real estate values trend upward over time, especially in high-demand areas.
Those who panic during downturns and sell too quickly often lose, while those who hold through market cycles typically see strong returns. Whether you’re a homeowner or investor, avoiding emotional decisions and focusing on the long-term benefits of property ownership is key.
As an example in 2018 the median house price in Wallan was $507,700 but in 2019 the market dipped by 2.2% when the value dropped to $496,750.
Move forward to 2024 and the median price in Wallan was $620,000 – over a 20% increase since 2018 (source: www.pricefinder.com.au)
How would you feel now if you’d panic sold in 2018?