The Residential Property Cycle

“When the tide is in, everyone looks good, when it goes out, you can see who's not wearing shorts".

In boom times, nearing everyone can be make money; however, in tougher times, it takes a greater level of skill to overcome the obstacles necessary to prosper.

When the real estate market is booming nearly everyone can do well to varying degrees. Equally in tougher times one may risk losing money in real estate or risk not achieving the returns that other investment classes may offer.

Property values as opposed to other investment markets have a major difference in these boom/bust times in that the prices do not fall past the previous cycles low levels. As the cycle of price…