The best time to buy property is...?
Brett Alegre-WoodChairman, YPC Group
Now.
Yes, it's a cliche, but I want to explain why it holds true in all markets.
In our business we love property values that grow quickly because it builds our portfolios and makes our investors happy with their decision to purchase. The flip side is that while this is happening the demand for property is good and developers offer less discounts which means you need more money to invest in property and therefore less people want to invest (or at least the sales are more painful for them.)
The trick is to view a constant return that you will achieve.
You need to stay educated...
Grab my FREE weekly property mastery e-newsletter and learn the very same information many have paid thousands to learn. It's valued at £199 per year and each week, I'll teach you everything I've learned while building the portfolios of thousands of my clients over the last 15 years. Learn from my experience and avoid making the mistakes I did!
You'll learn all this and more in just the first 3 weeks of this newsletter:
 Plus, a special bonus: you'll receive Brett's regular video updates, delivered straight into your inbox, where he turns on his video camera and decodes the week's property news for you!
|
Join our newsletter list for FREE today and you'll receive as a bonus a complimentary copy of Brett Alegre-Wood's best-selling book The 3+1 Plan!
You'll learn the safest time-proven strategies that will guide you and grow your portfolio during any economic boom, bust, recession or downturn.The 3+1 Plan is a step-by-step guide that will show you how, with just four properties, you will be able to fund the lifestyle you have always wanted. Even before you retire! Immediately you register for our newsletter we'll send you the PDF download link for this award-winning book so you can start reading right away...
| ||||||||||||
| |||||||||||||
So -- when developers give you the big 15% discount, the market is probably stagnant, so you'll see a net return of 15%. But when the market is galloping, your capital growth will be at say 7% and your discount will be lower at say 8%-10%. Your net return may be around 15%-17%.
Either way you are making around the same return even though you might not see it.
Of course, this is a massive oversimplification since there are so many factors that l have overlooked but the important thing is this: you are going to need to invest some money. How much will depend on the market and the structure.
If you buy in a stagnant market then you get in cheap but you have to cash flow the ongoing costs so it's good for your capital and bad for your cash flow. If you buy when it's a hot market it costs you more capital but because of the growth your cash flow is better.
I hope this explains why the answer to the age old question of 'When should you buy?' is always 'Now, today, right this moment!!'.
Live with Passion,
Brett :-)
PS. I say 'Now' although this must be weighed with enough due diligence. Remember my 3 month 'procrastination rule'. You have 3 months to buy something. Anything less and you may not be doing enough research, anything more and you need a kick in the ar*e because you are procrastinating.
Reader comments for the article 'The best time to buy property is...?'
You're invited to join in the discussion of this article. Do you have advice to share? An opinion or some feedback that adds to the discussion? Feel free to add it below! (Please note though that ALL comments are checked before they're posted.)
Brett reporting from Malaysia, should we open up an office in Malaysia?
How will the Euro affect you as an investor?
Is it realistic to have cashflow positive investment property 100% of the time?
How Much Capital Do You Need To Get Started In Property Investment?
How Quickly Should An Investor Build Their Property Portfolio?
Brett reveals London's newest, still-unknown hotspots in new video