Is Now a Good Time to Invest in Property?

Is now a good time to invest in property? That's a question I'm often asked, and one I'm going to answer for you in this blog.

Since starting to invest in property back in 1995, I have experienced the property market boom, crash, and boom again, and you know what, people always want to know “Is now a good time to invest in property?” Particularly people who are new to property investing, who may think that they have missed they boat, think it may be too late, or believe that property prices are now too high, and so wonder is it a good time to invest in property?

The Two Best Times to Invest in Property

Well there are two best times to invest in property. The best time is 20 years ago. If you invested in property 20 years ago, you would have done very well by now. This is even though the market goes up and comes down occasionally.

The second best time to invest is right now, as long as you know what you're doing. If you educate yourself and learn the correct way to invest in property, it doesn't matter what's happening in the market. Whether it's going up, stagnating or coming down, you could still make money in property, if you know what you're doing.

Obviously in a rising market it's easier to make money in property. You can buy anything and it will probably go up in value. In a stagnant or falling market it's a bit more tricky. But if you know what you're doing there are still great opportunities. In fact, when the property market is falling in value, there are more opportunities than when it's rising. When the market is rising, most sellers have the expectation that someone will offer them more money for their property.

“When the market is rising, most sellers have the expectation that someone will offer them more money for their property.”

However, when the property market is falling, if someone is keen to sell their property and they believe the market is coming down - and if the general media thinks the market's coming down, they're going to be more motivated to sell quickly. They might give you a bit of a discount just because they don't know how far the price could go down.

 

If You Know What You're Doing It Doesn't Matter When You Buy

Now you might be thinking, if the price is going to go down, wouldn't I wait until it hits the bottom, and then I can buy?

First of all, you probably won’t get the timing right. You won't know when it's hit the bottom and coming back until everybody thinks it's coming back. When the property market's rising sellers are more optimistic that someone's going to give them the right price. So actually you can negotiate a better discount when the price is coming down. The other thing is, as I've said, if you know what you're doing it doesn't really matter when you buy.

Make Great Investment Now And Hold For The Long Term


So why not just educate yourself? Make great investment now and plan to hold for the long term. You see sometimes people worry unnecessarily. They think if the market comes down, their losing money. That's not actually the case. If you have to sell a property for less than you bought it, then obviously you've lost money. But if you don't have to sell the property, if you can hold onto it and allow for the market to recover over time, then you're not losing any money at all. So it's very important to make sure that anything you buy creates positive cash flow for you

You might read the other blog I have written about 'The 5 Golden Rules of Property Investing’. If you follow these 5 Golden Rules, you can minimise the risk and maximise your return. So maybe go and look for that blog, it will help you with your investing. So the answer to the question, is now the time to invest in property? Is a positive YES. Now is always a good time to invest in property, as long as you know what you're doing.



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