Fear, Facts and the Future of Property

Every few months, a new headline pops up warning that Australian property is on the brink of collapse. The latest? Reports claiming that $500 billion (or $770 billion, depending on where you read your news) could be wiped from property values by 2030 due to climate risk.

Let’s call this what it is: absolute lunacy.

These headlines were shared across the country as the federal government released the nation’s first climate risk assessment, laying out dire warnings of worsening natural disasters, rising sea levels, increasing temperatures, and claims that these circumstances would lead to stripping property of its value.

Sounds terrifying, right? But let’s be clear: this is less about facts and more about fear.

For those about to call us climate change deniers, please read on. This article is about how to respond to any circumstances when it comes to property investing. But to be clear, we have no fear investing our money in opposition to what the recent report says, and we have no concerns about the ‘possibilities’ that could eventuate relating to property price crashes and not just because we support multiple experts who say the report is flawed and politically driven to support a policy outcome. Even if the report’s findings are correct, the result regarding property isn’t. The math isn’t mathing.

So, whether you believe the Government’s report or not, we can assure you that property investing is always about individual outcomes and strategy first (which considers all possibilities) and specific property last.

Fear is Paralysing and It’s Misplaced

Here’s the thing: even if these projections were true (and the evidence suggests otherwise), the overall property picture makes them irrelevant to you right now. Fear like this stops everyday Australians from taking action, and that’s how opportunities are missed.

The reality?

• We don’t have enough homes. Scarcity, and the inability to increase supply is what is driving the market.
• Living in a house is already becoming a privilege. More renters mean higher rental demand for investors.
• History proves it. Every doomsday prediction about property for more than 30 years has been wrong, and values have continued to rise. Conversely, our predictions have been 100% right for more than 15 years.

If the report about the effect on climate change was right, then the lack of supply, which is driving demand, would only increase. Fewer homes for an ever-increasing number of people. An undersupply that already can’t be overcome in our lifetime.

So, what is likely to happen? On the climate reducing property values – nothing. On uninformed policy makers placing ever-increasing unrealistic overlay constraints on creating new supply – likely. In short, the only likely outcome of real action in the property space from this report is actions that will further drive up house prices, limit supply and thereby continue to fuel the environment of increasing house prices and rents. Terrible news for most Aussies. Great news for those who own property, and especially property investors.

There will be more politically motivated crimes against property like this in the future, and we have seen so many already. All add to the same outcome. Rising prices and rents.

What Really Builds Wealth

The truth is simple:

• Fear will destroy wealth.
• Fear comes from a lack of knowledge.
• A lack of knowledge is the source of risk.
• You can’t save your way to wealth.
• You can’t earn your way to wealth.
• But you can invest in scarce, in-demand assets like property.
• But you need a team.

So, the only way to do that with confidence is to stop buying into fear and start building a strategy.

Even if you did believe the headlines, you still have power. You can structure your investments, buy in the right markets, and take control of your financial future. (We have some ‘hinterland’ examples for you below)

At Investor Property, we cut through the noise with data, insights, and strategies that work for real Australians, not for clickbait headlines.

The Bottom Line

Don’t let fear dictate your decisions. Property remains the most proven path to building wealth and security for your family.

Book a free strategy session with our team today, and let’s talk about how you can protect and grow your financial future, no matter what the headlines say.