Share market woes do not mean property will crash

Large volatility in the economy, the share market or the property market is never a great thing, as it can lead to irrational decisions. However, if the share market does fall significantly, it doesn't automatically mean the property market will drop. A number of economists are predicting interest rate drops, which will give positive enthusiasm to property owners and investors. Even if property values temporarily drop slightly, lower interest rates make it more affordable to hang on to your property and so you're less likely to have to sell it. For example, my properties in the UK have now become much more cash flow positive.

Median-priced properties, especially around the inner cities, are the least likely to be affected due to the high demand and lack of supply. People will still have reasonably paying jobs and still need to live near the cities. Million-dollar-plus properties may well become more volatile as buyers are less willing to make a move and find it easier to sit on their hands and do nothing.  Good properties in good locations do typically still sell well no matter what their price if they tick all the boxes. For the ones that aren't quite perfect i.e no parking or on main roads are more likely to take longer to sell.

A lot of the media are recognising that they're in danger of getting the nation to talk themselves into a recession if they sensationalise the news too much, and so a lot of the TV news shows etc are being responsible and trying to put it into perspective. The UK is in a much worse position than Australia, and my inner-city property investments there are still worth 95% of their peak, are producing a much better cash flow and are still worth three to four times what I paid for them 20 years ago.

The temporary drop is insignificant if you look at it over a 10- to 20-year time frame and have the ability to not be put in a forced sale position.