Diversifying Property Portfolios
“Is the credit squeeze going to affect house prices more in one area than another?”
The real facts are that it has not become obvious to anybody yet what the fallout is going to be from the credit crunch in the US.
One moment our hopes are up thinking we may have hit the bottom and things are getting better, then the next minute some more news puts everyone on edge again.
The Australian Government is saying that Australia is better insulated from any major fallout, and that may well be true.
The reasoning behind this post is to throw the idea out there as to if, when investing, it should be more important now than ever before, that property portfolios are diversified?
A diverse portfolio should carry older houses and newer houses, units, all most definitely in different areas, or even preferably different states. If Australia is going to be affected any more by the world economy, perhaps it is better to have your properties in areas where there are different reasons for growth. In other words, a mining town, a tourist town, a rural town, inner city, and outer city.
It is too early to collect any data on this theory as yet, but it certainly is one worth considering.
Filed Under: Investment Strategies • Property Investment Tips
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