Two Key Tips For Investors Returning To Market

With investors returning to the market this year, I have two crucial tips to buy well.

Tip 1: Don’t try to over-finesse the timing of your purchase.

The golden rule with property investment is you must buy with a medium to long-term view. Nothing less than five years, and 10 years or more is even better.

If you’re doing that, you don’t need to bother trying to time the market cycle. Australian property is going nowhere but up. If you invest in areas with a strong growth profile, you can’t go wrong. But you have to be able to hold it for the long term. Stamp duty and other costs wipe out the first year or two of growth. Don’t think of property like shares, this is not a three-year horizon.

Currently, I think it’s a great time to buy, but arguably it always is if you’re buying the right type of property, in the right location, for the long term.

I think most investors have been waiting to see where interest rates stop, and now they’re coming back. There’s certainly good buying available at the lower price points because that end of the market has not done as well as the top end in recent years while rates have been rising.