When is the right time to buy your next investment property?

One of the things I constantly see as a property investment strategist is investors who wait and watch for a market slowdown or an impending crash. These type of investors become so determined and consumed trying to secure that “bargain” price that they miss out ona great opportunity.

Of course 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. But that doesn’t seem to change their behaviour.

While timing of the markets is important to some degree, it is definitely not the key to investment success.

There’s a saying in property circles that goes; “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 to.

Yet many people are concerned that affordability is just too much of an issue right now to get into property investing.

We hear about it constantly in the media – the issues with the rising cost of housing and the property bubble that’s about to burst. I’m certain this has caused many potential investors to sit on their hands and wait to see what happens. I’m also certain that many of these potential investors will kick themselves in about five year’s time for not taking the plunge in 2018.

I’m not suggesting that you should run off and buy any old property at any point in the property cycle just because you have some extra funds lying around.

Far from it.

The take home message is that while the property market undeniably has its ups and downs, well located, highly sought after property rarely declines significantly in value over the long term…and property investment is all about the capital growth you can achieve over the long term.

So yes, there will be times when your investment only grows in value less than 5% per annum, but there will also be times where it skyrockets by 10% plus.

Market Timing

I’m not suggesting that market timing isn’t something you need to consider as an investor. In fact, I think the more knowledgeable you are about how the property markets work and your own personal position when it comes to your capacity to invest, the better prepared you will be and the higher your chance will be of creating significant wealth. And while it’s natural to be cautious, you should remember that with risk comes reward.

There will never be the perfect time or the perfect property – Procrastination does not equal profit.

Sure there are risks involved – as with all investments – but don’t let the question of timing be your undoing. 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 it for the long haul and not just to make a quick buck, then when you buywon’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 capital growth you’ll win the game every time.

And in particular look for areas where there are multiple growth drivers that will ensure continued long term capital growth.

Drivers such as gentrification, employment growth, population growth in an area where there is limited supply and major infrastructure changes.

Now it’s your turn:

If you want to get the best deal when you buy your next investment property, why not get a professional property strategist, buyer’s agent and a local property manager on your side working for you.

When you use the team at Chadwick to help you find your next home or investment property you level the playing field because we know all the tricks and traps of the real estate industry.

Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.

Have a question about your investment property? Speak with our property management expert, Kenny today.