Markets inflate over time. An upward-trending sector does not guarantee continued success or maybe, it will. Even a stable industry could suddenly experience a sharp dive at any given moment. Many foresaw the fall of video shops but only last year has the public seen how far has it sunk down the public’s pecking order.
Property investment firm Sentinel Property Group says that blindly following the pack also would not yield as good as a result all the time. Skyscrapers and grandiose real estate were the name of the game in Dubai until it imploded. The small Arab nation is in massive debt now, though it remains to be a hot tourist spot. Good for tourists but as for investors, it is a ticking time bomb waiting to blow up in your face.
Time as an Advantage
While it is entirely possible to invest on a property that will yield big in the long term and continue that way, everything has a limit. That is why investors should learn when to go in and out; strike whilst the iron is hot then, as they say. An Australian town called Moranbah got it bad real fast. With properties priced at over a million dollars, it was on par with Manhattan, New York when it came to prices.
Investors got too cocky, inflated the rent price and did not see a good return. Now, home price estimate hits half a million at the most and with a rent return of 5%. Bad for the current investors, but an opportunity for new investors buy properties, flip them and sell for a premium.
Pillars of Good Timing
Research always backs any venture. It gives a buyer great scope on the situation, or the property, as a whole. Remember to take the statistics with a pinch of salt and pinpoint the right prices. Also, keep in hand inspections and checklists to determine which property provides good value and resale value.
As for the actual timing, November and pre-Easter is when buyers and vendors are most eager to close out a deal. They want to purchase a new home and move in the next year. This, above all, is the most important thing for an investor. Whether going in or coming out, always do it when the public’s interest is at its peak.
Property investors must always keep their eyes on the prize and must know where to find good value. Add the ‘when’ factor to the equation and then an investor is in for a wiser buy.