Investors often buy when the market is low and sell when it is at the top. However, this is not always the best strategy. Many investors miss out on great opportunities while being consumed with the timing and finding the right bargain. True, you should consider the stage of the property cycle but it should not be the sole reason why you would invest.
Good property investors purchase investment grade properties in locations that fit their strategy when the time is right.
It is important to buy only investment grade properties as these have already proven to stand all market conditions better than other properties. They buy when their finances allow them to or when they have enough equity to invest in another one.
Truth is, market cycles in capital cities are generally less critical if you plan to hold a property for the long term.
You may be able to ride out market fluctuations this way. By the time you want to sell, you have created wealth from compounding equity through the years. The period of time you are in the market is more important than timing the market.
You can also make money by buying the right property rather than snagging a bargain which could just be a secondary property.
Do this by purchasing an investment grade property which is in a good location and at the right stage in the cycle. While the timing is important, you should not rely so much on the property cycle and instead, make your capital growth through strategies. Purchase a property when you can afford.
For more information about property investment in Australia, contact a Specialist to discuss your particular circumstances.
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Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.
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