Is Timing Everything? When to make your move in property investment.

A lot of people will tell you that timing is everything when it comes to purchasing an investment property. This may be true if you’re looking to ‘flip’ a property and make money in the short-term, but when it comes to long term investment it’s a different kettle of fish. The property market is cyclical. While there are certainly times when the property market surges and times when it stagnates (although it doesn’t see the same extreme fluctuations as the far-more-volatile share market), eventually these fluctuations are bound to even out.

Timing isn’t everything

If you’re looking for some magical moment in time when the stars align and the market situation is just right to grab the perfect deal on a long-term property investment, you’re going to be sorely disappointed. There are always going to be excuses to avoid buying, whether it’s the Government altering tax schemes, crises in foreign markets or low inflation on the domestic front. With so much that can potentially go wrong, how can we find the perfect time to invest?

The answer is simple: the time to make your move is NOW. If you’re thinking about long-term investment — if you’re looking for that nest egg that’s going to secure your financial future and ensure you have wealth well into retirement — then you need to realise that timing isn’t everything. In fact, time is always going to be on your side. Despite the booms and falls that take place in the property market from year to year, average capital growth over a 20-year period will remain steady.

Patience is a virtue

There are plenty of savvy investors who have managed to build themselves a fantastic property investment portfolio despite the fact that they made their purchases during so-called “bad times”. These are the investors who realised that the key to securing their future wealth did not require the kind of expertise that is crucial to making money on property in the short term. When it comes to long-term investments, the most valuable weapon in your arsenal is patience.

It’s easy to fall into the trap of impatience, particularly when it comes to your finances. It’s easy to freak out at the first sign of a property market slump and feel like you need to take steps to fix the situation. Many investors can get fidgety and begin renovating and selling their property in order to avoid losing out. What these investors need to realise, however, is that the cyclical nature of the market means that things will even out over time — and as we’ve already said, time is your friend. Rising interest rates will lead to a downturn and languishing property values will lead to a bust before, inevitably, falling interest rates bring about an upturn and, ultimately, a boom. And so the cycle continues.

So remember — timing may not always be your friend, but time most certainly will. Sure, there are times when purchasing a property will have extra benefits, but in the long run, the benefits are going to come either way.  The time to make your move and secure your future wealth is now.

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