If you haven’t asked this question yourself, I bet you have heard it asked. And the classic answer is: “20 years ago”. However, even if you did buy 20 years ago, you could still ask the question, since by now you should have plenty of equity to utilize in buying another property!
Many people are currently concerned (and rightly so, if you are buying in Sydney) that the property market is at its peak because conventional wisdom dictates that this is the wrong time to buy property. This premise is built on the idea of market cycles (or peaks and troughs). Ideally, you buy at or close to the bottom of the cycle (or in the trough) and sell at or near the top of the market (i.e: the peak).
This theory works fine in areas outside the 10km radius of Sydney’s (or Melbourne’s) CBD and extends beyond the outer suburbs to regional areas and smaller capital cities. In cyclical markets such as these, WHEN YOU BUY is critical to your success as a property investor.
There is a big difference, however, in the way inner city property markets perform. Blue chip suburbs don’t follow market cycles in the same way. When the market is hot, all property tends to attract loads of buyers, regardless of quality. So you find buyers competing for houses on main roads in a seller’s market, for example, when in a buyer’s market they struggle to sell.
Conversely, there is always demand for quality property, regardless of market conditions. In these areas, WHAT YOU BUY is critical to your success as a property investor.
So the answer to the question is that if you are buying in a blue chip area, the time to buy is when you can afford it AND when you find a quality property.
Published:- 20 Oct 2016
Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.