How do you know when it’s the right time to buy your next investment property?
A lot of investors always miss out on a great opportunity because they were so consumed with timing the markets, they forget to actually take the plunge and buy something.
Generally, these investors become obsessed with the idea of buying right at the bottom of a property cycle so they can secure a “bargain”. This type of investors becomes so determined to get the best possible deal that they are never quite sure if prices could go just that little bit lower; so they wait.
This is dangerous because by the time they realise they should make a move, the so called “bargains” have come and gone and the market is moving onward and upward again.
While timing of the markets is important to some degree, it is definitely not the key to investment success. “When was the best time to buy property? 20 years ago! When is the second best time – today!”
In other words, you buy when you can afford to and when you are ready. We all hear about property in the media – the issues with the rising cost of housing and the property bubble that’s about to burst.
This has caused many potential investors to sit on their hands and wait to see what happens. But in reality many of these potential investors will kick themselves in about five year’s time for not taking the plunge in 2014.
The property market undeniably has its ups and downs, well located, highly sought after property rarely declines in value over the long term…and property investment is all about the capital growth you can achieve over the long term.
There will be times when your investment only grows in value by less than 5% per annum, but there will also be times where it skyrockets by 10% plus. On average, you want your property to earn you around 8% per annum or more over the long term, taking into consideration the extreme highs and extreme lows.
The more knowledgeable you are about how the property markets work, the better prepared you will be and the higher your chance of creating significant wealth.
But it’s natural to be cautious and you should carefully assess your own personal position when it comes to your capacity to invest, you should also remember that with risk comes reward.
There will never be the perfect time or the perfect property – you simply will not find either.
But procrastination does not equal profit.
Don’t let the question of timing or the fear and doubt that can come with taking the plunge into property, be your undoing.
There are risks involved – as with all investing – but these can be minimised with the right type of research, financial planning, goal setting and of course, advice from experienced and independent experts.
If you are in property investment for the long time investment and not just to make a quick buck, then when you buy it won’t be as important as what you buy.
If you’re willing to sit on your property purchase for the medium to long term and buy in tried and tested areas that provide consistent, proven above average growth, you’ll win the game every.
Investing is more about buying right than buying “at the right time”.It’s in the ideal location, in an ideal apartment block, with the ideal layout and basically has all of the fundamentals that make the perfect investment and time has proven to be correct that clients who bought property at a time when others were wondering what they should do. Five years down the line it’s their time to smile all the way to the bank.