Fear and Obsessive “Timing of the Market” Can Steal Great Investment Opportunities
Knowing when to get serious about investing and grab hold of an opportunity can be tricky for first-time investors.
In fact, many seasoned investors miss great opportunities, because they’re so consumed with timing the property market forecasts that they don’t actually jump in and invest.
Many investors or would-be investors hold back out of fear of making an unwise investment. Then, when someone announces the market is slowing down, they jump in, but at this point many great opportunities for the best deals have come and gone.
Is the best time to consider investing now?
So, when is the best time to consider investing? It depends.
Whether or not the right time to invest is now depends on a few factors:
- What are you looking for?
- Where do you want it to be located?
- Do you have a long-term view?
Many first-time investors who can’t afford to live in their ideal location are choosing to rent in their ideal suburb and buy an investment property further out.
Right now property prices are high, especially in Sydney in Melbourne, BUT interest rates are at record lows.
So, for many NOW is a good time to jump on the investment train while there are low interest rates and tax benefits.
What’s important for the first-time investor is to ensure you’re not overextending yourself and that you’ve thought about whether positive gearing vs negative gearing is right for you.
Twenty years ago might have been the best time to invest, but the second best time to invest is today.
You absolutely should consider the ups and downs of the property market, but here is something important to remember:
Sought-after property in the right location hardly ever declines in value over the long-term
While rental yield and cash flow are important, property investment is really about capital growth over the long-term.
You might have years when your property value grows very little and years when it skyrockets, but over the long-term a property should grow on average about 8% per annum.
With the right research, financial planning, expert advice, and thoughtfulness, you can minimise risk and then the question becomes not when is the most important time to buy, but what should you buy.
How can you win the property game?
If you choose to invest in proven high yielding areas that consistently provide above-average growth and you hold for the medium to long-term, you’ll win the property game every time.
If you want to know what to buy and where, a professional investment property strategist can talk to you about what he or she is seeing in the market first-hand and introduce you to solid property investments.
If you have questions about purchasing an investment property or would like to speak to a qualified property investment professional, contact us.
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