Predicting the perfect time to buy is difficult, even for the experts, yet many investors get caught in the fear of buying at the 'wrong time'.
The truth is that when to buy is not nearly as important as actually buying a property, particularly if you are planning to hold onto it long term. As long as you are prepared to keep your property through the good times and the bad, you needn't worry too much about temporary shifts in prices because it is still likely to end up being profitable in the end.
If there's a timing issue that's important, it's getting your personal timing right: are your finances ready, do you have a plan...
Do you have a plan?
Write down your goals for property investment - do you want to become a landlord or would you rather renovate and sell properties? Do you want a positive cash flow property, a high capital growth property or a balanced investment? Be clear on what you are seeking to achieve and what type of property fits your strategy.
Are your finances ready?
Your finances should be in place before you go shopping for a property. As your mortgage adviser we can help ensure your finances stack up, which will narrow down the most suitable areas for your research efforts.
Have you researched?
As an investor you need to use statistics to not only find the right suburb but also the right property within the suburb. Look for areas with low vacancy rates, broad buyer and tenant appeal, high employment and good transport links.
Are your emotionally ready?
You need to be prepared to put your emotions aside and think like an investor, not a home owner. The property you buy doesn't need to be one you love, or even particularly like, as long as it meets the needs of the rental market. You also need to be detached enough to walk away from the property if the deal doesn't work out the way you wanted.
Are you prepared for risk?
Events such as a major repair, employment change, extended sickness or sudden interest rate rise could put you in an uncomfortable financial situation. Make sure you are ready for the ups and downs of investing to ensure that your journey as a property investor is a long and profitable one.
Have you sought good advice?
By talking to experts you will be able to avoid many of the pitfalls that inexperienced investors encounter. As your mortgage adviser we can help guide you through the property investment process and refer you to expert advice where required.