The Best Time To Make Money When Buying Property

The Best Time To Make Money When Buying Property
18-Jun-2019

Some people may say after the market has crashed, others will say when it is just about to recover, those who have experienced multiple property cycles will likely say in the smaller town that has just started to take off near the already popular larger one.

So when is the best time to make money from investment in property? Well, all of the above are right in one form or another but the one thing everyone would agree on is the key to maximising the return on investment in property is all about the timing.

Purchasing property can be Some people never buy because they are never sure when the time is right and others are disappointed when they thought they time was right, and they missed it by a year or six months – as this is extremely easy to do.

Common Investment Property Strategies

The great thing about property investment is that there are so many successful strategies, all personalised to suit different individuals, their lifestyles, their finances, their risk tolerance etc. Some examples of today’s property investors might be:

  • The buy and hold investor who pays P&I loans that ends up with one or more free hold properties over their life.
  • The trader that buys and sells every couple months.
  • The developer who wants to subdivide.
  • The renovator who just want to flip it quickly.
  • The investor who wants to only buy new build/off the plans houses.

Getting It Right When You Buy

So, when is the best time to make money from property? It doesn’t matter which of the strategies above (or many more out there) apply to you, the best time to make money through property is when you ‘buy’.

Once you have brought a property there is no going back, the market will do what it does, good things and bad things will go on around you, so one day which may be tomorrow, it may be 50 years away, the value of that property will be what it is, but if you have paid too much for it today it is already too late.

Now I’m not saying you always have to get the best buy you can when you purchase, there are plenty of reasons to pay value or even higher, it may be your own dream home, you may want to buy the place next door as well, you might see some value that others don’t see in what you can do to it, you might know that the area is about to have a boom and you just want in, the cashflow might be so good it is worth paying more than it is worth.

How To Buy Well? 5 Top Tips

There are a few things you can do to maximize your buying power and make the right decisions when it comes to buying well.

  1. Know The Area. Get to know the area right down to the suburb, the street and even what side of the street is better.
  2. Become An Expert. Know what a 2, 3 or 4 bedroom house goes for, what building materials and structures are more popular etc.
  3. Door Knock. Talk to a good Real Estate agent that understands what you are really looking for and can look out for the sorts of opportunities you are after.
  4. Consider Proximity To Amenities. How close to public amenities or public transport is the property - this is important for both future buyers and renters.
  5. Maximise On New Developments. If buying an off the plan build for an investment purchase, when the development first comes out if done properly you can’t help but make money prior to settlement, it doesn’t matter what the market does within reason.

Remember you make your money when you ‘buy’, within reason it doesn’t matter what type of market you are in. Need more advice on when is the best time to buy into the property market? Talk to us at Property Ventures - experts in investment, commercial and residential real estate in New Zealand.