Property investment not always the solution: Alexander
He says while it is a good way to build wealth, we will soon see people who should not be investing gearing themselves up as prices rise and messages increase about the need to build wealth.
“Not because they are greedy but because they will be told they are missing out on something and this it is easy to participate – which it is. But what always happens in asset cycles is that assessment of risk goes out the window.”
He says people do not consider things such as whether they will understand why things might turn bad, whether will know what to do to fix, whether they will know when to cut their losses if need be, and whether they understand that it can be hard to sell in a falling market.
“Will you ultimately become willing to accept a certain large loss in order to sleep at night not worrying about losing more?”
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