Why the Best Returns Come from Imperfect Markets | O Johnston & Co Property Insights
In property investment, uncertainty often gets a bad name.
Headlines warn of “market slowdowns,” “rising rates,” and “dwindling demand.” Most investors respond the same way - they pause. They wait for “stability.”
But here’s the paradox: the best investors don’t chase stability - they capitalise on instability.
They understand that imperfect markets create perfect opportunities.
The Myth of the ‘Right Time’ to Invest
Many investors fall into the trap of waiting for ideal conditions: low rates, rising prices, and positive sentiment.
But by the time those conditions arrive, the gains have already been captured by those who moved earlier.
The property market, like any market, is cyclical. There is no perfect time - only different risk profiles.
Periods of uncertainty widen spreads, loosen negotiations, and uncover motivated sellers. These are not red flags; they’re signals for opportunity.
How Imperfection Creates Advantage
When confidence drops, markets become inefficient.
Pricing stops reflecting long-term fundamentals and starts reflecting emotion. This is where strategic investors step in - because inefficiency breeds value.
Here’s how the best in the business use imperfect markets to outperform:
They Buy Liquidity Stress: Developers and landlords needing fast exits will take discounts.
They Hedge with Fundamentals: Focus shifts to assets with strong rental resilience and low vacancy exposure.
They Think in Cycles, Not Quarters: While retail investors fixate on 6-month headlines, professionals price in 3–5 years.
Uncertainty is not the enemy - it’s the fuel for higher returns.
Why Most Investors Miss These Windows
Fear is expensive.
When the media narrative turns negative, most investors move to cash. But liquidity without deployment is stagnation. Every month spent waiting for confidence to return is a month of lost opportunity.
Those who wait for proof of recovery will inevitably buy at the top of the next cycle - when competition drives prices back up.
Meanwhile, disciplined investors quietly accumulate discounted stock and reposition their portfolios for the next wave of growth.
Turning Uncertainty into Strategy
The real skill isn’t predicting the market - it’s positioning within it.
Sophisticated investors use downturns to restructure portfolios, negotiate favourable finance terms, and secure assets with intrinsic value rather than hype-driven growth.
The difference between winners and worriers isn’t access to data - it’s interpretation.
It’s the ability to separate noise from signal, short-term fear from long-term value.
Our Approach
At O Johnston & Co, we specialise in identifying those opportunities that uncertainty creates - the ones hidden behind fear-driven selling and short-term sentiment.
We analyse data, pressure-test yields, and source deals that are positioned for long-term strength, not short-term optimism.
Because while most wait for the market to feel comfortable again, the smart investors are already building their next wave of returns.
