Is Now The Right Time To Invest In Property?

Many people have asked me recently if now is the right time to invest in property?

Well, the answer is, of course, yes.

In fact, every time is a good time to get started investing in property.

It’s a bit like the stock market, but you don’t want to try and buy at the bottom or try and sell at the top. Because if you are constantly playing that game of waiting for the top and the bottom, it may never come, and you could end up losing out and looking back at what you could or should have done in the future.

Knowing the market conditions before you invest in property

One key trend we need to be aware of is the market conditions, and how they affect the deals we’re looking at. The conditions will dictate whether we make our money when we buy or sell and that sliding scale in between. And this applies to all residential and investment strategies.

For example, the property market has been very buoyant recently, with properties selling for way more than they’re being marketed for.

We’ve got bidding wars, sealed bids, all that stuff, which means it’s a seller’s market. And what sellers’ market means is that if we’re starting to add value to property, we will be able to command a strong price when we resell. So this means that the adjustment needs to lie where we might not necessarily be able to get as much off the purchase price, but we’re certainly going to make it at the back end.

Current market conditions

With what’s going on in the world currently, the market is being affected; it’s plateauing, house prices are flattening out, and transaction numbers are reducing. So, where we were relying on making money when we added the value, that’s starting to adjust again, where we’re having to start looking at the money that we get off the purchase price at the front end. And that sliding scale is what we need to adjust as property investors as the market changes.

So when it’s buoyant, we go that way, and when it’s not as great, we start moving that way. And, when markets crash, we’re looking at getting maximum reduction off values. And when the markets are buoyant, we’re looking at maximising the value adds that we can add.

Don’t delay

Make sure that you’re not putting things off until you think the market will do something it might never do.

Obviously, if you’re looking to do the quick flips, quick transactions, i.e. flips, you need to ensure that the figures allow for that. Or, if you’re looking to hold for the long term, history dictates that the property market will continue to rise; whether it rises at the rate it’s been going in the past it’s not necessarily a certainty, but it is pretty certain it’s going to rise over a long period of time.

So, is now the right time to start investing in property?

Absolutely yes, remember, every time is a good time to start and invest in property.

And to avoid losing out and looking back at what you could or should have done in the future, remember;

• Don’t wait for that bottom that may never come.
• Be aware of the market conditions as these dictate whether you make money when you buy or sell and that sliding scale in between.
• When markets crash, we’re looking at getting maximum reduction off values.
• When the markets are buoyant, we’re looking at maximising the value adds that we can add.