The timing of the market is something to be aware of within the game of property investment. Whilst timing is not the be all and end all, it certainly helps to know when to never invest, and when to always be prepared to invest. Many misinformed investors won’t even consider the timing of the market, and will base their entire investment decision on word of mouth, and ‘following the herd’. To this point, ‘following the herd’ and investing when everyone else is on the property bandwagon is an ill-advised move. In most cases, jumping on the bandwagon would mean entering a potentially oversupplied market. This leads to another point of discussion, and something that ALL investors should be aware of and considering – Supply and Demand.
As investors, we know how important it is to get the location right. But what is ‘the right location’? To answer this, investors need to be conducting research. We need to be researching and understanding the historical movements of the market in question, the primary demographic, and whether there is more demand from homebuyers than there are properties for sale. When demand has outweighed supply, the prospect of good long-term growth is displayed. Investors must educate themselves by attending seminars, seeking financial and investment advice, and reading into this, to further grasp whether the considered location is a good fit. Finally, financial literacy is of immense importance in the game of property investment. Investors must be knowledgeable when it comes to everything from managing money, budgeting, and even balancing the books at home. Investors must be on top of the ins and outs of taxation, and the best structures to own investments in i.e. personal, company, trust, as well as the financial advantages to enjoy as an investor. It will also be of great benefit to seek the advice and expertise of a good team of professionals who can guide you through the journey to real estate riches. Now it’s over to you!
Formulate a plan; to understand what you want to achieve, be cautious; of who you seek advice from and what is being said, understand the difference between a sales person and an adviser, and make investment decisions accordingly. Most importantly, enjoy the journey of building your investment portfolio!