Property Cycles - Phase 3 - Galloping/Buy/Remortgage
Hey guys,
This where property gets exciting, interest rates are low, properties are increasing in value the whole market seems unstoppable and it probably is for a time at least. This is the time you can make an offer on a property and be gazumped the following week.
During this phase your two strategies are simply buy and refinance then buy some more. Dont worry if you think you shouldn’t buy because prices will never be this low again. You can buy freely in this stage. Cashflow is definately not the issue during this phase, the amount of capital available is. In saying this I always recommend you still consider your 2 year cashflow to be absolutely certain.
During this period when selling property is easy it is often harder to achieve big discounts as builders and owners do not have to worry about sales. This is why you often require more capital during this phase.
The only caution during this phase is not to ride the wave too long you will have certain indicators of when to slow down and begin restructuring. This the point you need to move onto the next phase.
Live with passion,
Brett Wood
