Cool heads prevail in apocalypse

Horror flicks are gross and gory, but some also allude to sensible real estate strategies, says personal finance writer Anthony Keane

ZOMBIE tiger. They’re two words I never expected to write in the same sentence – let alone in an article about real estate.

But watching new Netflix movie Army of the Dead recently got me thinking about how property owners and investors can learn a few tricks from those undead monsters that have starred in countless horror films and TV shows.

I’m not a horror film fan – most of them freak me out, and I’ve had a DVD of Wolf Creek sitting unwatched on a shelf at home for close to 15 years because I’m too scared to put it on.

But Army of the Dead had two cool things going for it: first, actor Dave Bautista from recent Avengers and Guardians of the Galaxy hit movies; and secondly, a zombie tiger. “Valentine” the decaying tiger was gross and gory, just like the rest of the movie that was set in a Las Vegas overrun by zombies, but thinking about an undead attack – on two or four legs – can spark some sensible real estate strategies.

For many years the US Centers for Disease Control and Prevention has published plans for dealing with a zombie apocalypse – long before it had Covid-19 plans. Their zombie warning is tongue-incheek, but the idea of being prepared for anything is also great financial wisdom. Property owners – especially those with a mortgage – should have a plan for how they will deal with sharp interest rate rises or heavy falls in home values. They should also have an exit plan for eventually selling. Even if these aren’t written down or printed, they should at least be in your head.

Zombies march relentlessly towards their target and show the kind of determination that many AFL coaches would applaud.

This type of focus and patience is an important skill for people wanting to profit from property.

When you’re annoyed by nasty maintenance expenses, rising interest rates or tenant trouble, think of long-term goals of being mortgage-free or building wealth beyond what many can imagine.

And when property prices stagnate or shrink, be patient and relentless.

An investment property I purchased more than a decade ago went nowhere price-wise for the first nine years, and has only recently enjoyed a bounce. Patience pays off.

When Covid first hit hard in March 2020, fear was everywhere and some people were panic-selling real estate at huge discounts.

The big winners from that episode were those who looked beyond the fear and uncertainty and bought in while others were running away. They have benefited from the strong housing rebound in the past year.

They ignored the warnings by some economists that house prices could plunge 30 per cent, knowing that real estate is a longterm asset and that Aussies love housing.

A cool head will serve you well in a zombie apocalypse and also when people are worried about a property apocalypse.

During Covid’s brief property price crunch, I held firm and can honestly say I was not afraid. But I still won’t go anywhere near that Wolf Creek DVD at home.