The Myth of the Perfect Time to Buy Property

Every time I speak with people curious about buying property, they always ask about market trends and economic factors that can impact their purchase.

I generally find that the more people go down this rabbit hole, the less likely they are to invest.

In fact, you could argue that there’s never even a “good” time to buy property. If there was, I’m certain many more people today would be sitting on handsome portfolios they purchased decades ago.

The truth is that many of the people that I talk to that ask the most questions aren’t looking for reasons to actually buy, they are looking for excuses to justify why NOT to buy.

Let’s consider what’s happening in the market right now:

  • Interest rates are on hold after a series of rises
  • Sydney’s property market has shown capital growth for two consecutive months, with the rest of the country becoming steady
  • Loan serviceability has decreased significantly due to rising interest rates
  • Many homeowners are about to face increased repayments as they come off their low fixed interest rates

If you are looking to buy and hold for the long term, I’d argue it’s almost irrelevant. I’ve always bought when I could afford to buy and hold on for the long term, no matter what the economic climate.

I believe that trying to predict the future of property prices or interest rates is almost impossible. If experts get it wrong all the time, what hope are you, your family, or your Uber driver of being accurate?

Instead of trying to time the market, focus on the long-term potential of your investments. Remember, there’s no perfect time to buy property.

Did you see this video we shared on our facebook page recently from ABC Canberra?

ok… there’s a few talking points from this video:

People will always find excuses, however the biggest excuse for NOT buying property hasn’t changed (at least since 1968).

Well, is it? Was it?

They were saying the same thing in 1968 and property cost the equivalent of $46,000 in today’s dollar value (adjusted for inflation).

If you could buy a block of land in Canberra today for $46,000, would you?

Sorry… wrong question…

How would you feel if that was your parents, grand parents or great grand parents that either purchased, or did not purchase at that auction?

What do you think someone will say if they watch that video 50 years from now?

(And before you ask… no, I’m not old enough to have any idea what 39.5 perches is)

Instead of worrying about what interest rates might do in the next few months and what interest rate I might be paying, I take a different approach.

You can’t know for sure what the future holds for property prices or interest rates, so don’t waste your time and energy trying to predict it. Instead, build a cash buffer to weather any storm and plan for the future.

If you had invested in Blue Chip property years ago, the short-term fluctuations in the market would be irrelevant. Over the long term, property values tend to increase, especially in sought-after locations with limited supply.

So, rather than waiting for the “perfect” time to buy property, take action now and focus on building a solid investment strategy that can weather market fluctuations.

Remember:

It's not "timing the market", it's time IN the market. - Kel Gray, Perfect time to buy property

Sure, interest rates might become steady, though serviceability is significantly higher than a year ago. Property prices might fluctuate, but you know what? Using the Canberra example, there’s periods where those prices have fluctuated too. The only question I have is, “where are the prices now”? Get the right advice and plan for all circumstances.

If you need guidance on how to get started or want expert help choosing the right property for your long-term goals, our expert team is here for you whether it’s a family home or investment property. Click this link have a free confidential strategy discussion with one of our property experts.

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