During time of market strife, buyers usually shy away and sit back waiting to see which way the market is going, in actual fact, this is probably the best time to make investments.
The market will constantly fluctuate – so the multi-million dollar question is are we right at the bottom or will it go down further? Our advice to clients is – it is practically impossible to buy when the market hits rock bottom as it is extremely unlikely that one will sell when a market is at its peak. Human psyche is that, if it sees the market falling, they will wait that little bit more, just to see. However the problem is that if you wait , using the analogy of a ball to represent the market prices, the ball may hit the ground and bounce back again and hence you miss that opportunity. At this point , you are in the market’s control, chasing it upwards.
So is it the right time to buy? Well, given that the ball is falling, our answer would be yes. There are many bargains out there, there are many bank repossessions and many of these offer great finance terms. Will it fall further? Well, who knows but if you decide on a long-term investment, then it is likely to bounce up again. Only, once it bounces, seller’s will be less flexible and banks may not offer the same terms on their bank repos.
So what can you do to ensure the property you are looking at is the best possible investment? Well, I think that the secret is in responsible buying. Check out the property, weigh up its advantages and disadvantages. Also make sure you consider all costs and pace yourselves so that the payments are comfortable. Also, location is key – so factors such as being close to a well-functioning golf course or within walking distance to amenities or beaches, makes the property more marketable in the future.