Property Investment – Getting the Timing Right
Timing – The Crucial Element
Timing is an essential element of successful property investment. The old adage location, location, location still rings true.
Understanding where a city is at in the property investment market cycle is crucial if you are to time your purchase to take advantage of market swings.
Obviously, you want to buy when the market is first rising, not when it has peaked.
How do you determine what market represents optimum timing?
- Look for areas that show significant population Growth over the next (7 – 10 years)
- Examine current and new stock levels – it needs to be either neutral or deficient to the demands of local population growth.
- Look for a market that displays a level of pent – up demand.
- Always ensure the property is designed and priced relevant to that of its local market.
- If positive, – then NOW is the time to buy selected property in that region.
Current position of property market cycles in our capital cities…
Source: REIA “Market Facts”
The chart above plots the annual percentage change to the median house price (MHP) in our capital cities. You will note that MHP performance in our cities, if ever, is synchronised. One city is levelling off, while another is rising.
Astute property investors avoid the peaks and falls, only buying when the Property Investment market has bottomed and has had its first rise.
So, where are Australia’s capital cities in the current market cycle and which cities are poised to offer the greatest capital gain over the next term?