It’s a question on all home buyers’ minds: when is the RIGHT time to buy property? Well, the answer is a little murky.
This whole concept of a ‘right time’ refers to the fact that the property market revolves in cycles. Sometimes, property will cost you and arm and a leg, other times it might feel like you’re getting a steal.
Ideally, we’d all like to purchase property when the housing prices are lower and we’d all like to sell when housing prices are higher to make the greatest return on investment possible.
But is this easier said than done?
Short answer: yes!
It’s incredibly hard to know when the metaphorical bubble is going to burst. Unless you’re really, really (and one more time for the people in the back, REALLY!) into property, it’ll be difficult to know when to time your investment so that you’re buying right before a ‘boom’.
It can also mean that you miss out on your dream home. You might have all your ducks in order, but if you are waiting for the perfect moment, you could be waiting a while!
So what should I do?
Not to fear! Economic theory is on your side. Theory tells us that with enough time, the cyclical market will even out the playing field, allowing you to make money back on your property without having to devote your life to watching house prices. Ultimately, it boils down to the concept of ‘TIME IN’ the market versus ‘TIMING THE MARKET’. But, as always, past performance doesn't indicate future performance, and getting a property expert involved is a great way to go.
All this means is that you’re more likely to get the most out of your investment by ‘buying and holding’ your property rather than trying to purchase it at the ‘right time’.
This is a more long-term investment strategy where you wait for the property values to rise (which does eventually happen) before selling yours.
So, if you’ve got your finances in order, #yolo! Bubble who?