To Buy or Not to Buy
I'm often asked for my opinion on whether it is a good time to buy or not. As I refrain to give investment advice, I thought I'll highlight my normal response and belief. I believe that over time property is a better investment than any other investment vehicle, even if you buy at the height of the market. The key is, you need to be able to afford the repayments during the tough times. Therefore, my advice always is to ensure you can afford the debt you are taking on and plan for tough times by having access to “rainy day" funds.
In saying the above, I am often astounded by how sentiment drives purchasing habits. The line, famously quoted by Baron Rothschild, “The time to buy is when there's blood in the streets”, keeps on ringing in my head when it comes to property investment. Over the last two years, people were outbidding each other at auction in the fear of losing out and now that the market is a bit more subdued I see people taking the ‘wait and see approach. In my opinion, it is better to buy when the market is in this ‘wait and see’ position, rather than competing in an environment where you fear losing out. You are better able to negotiate, take your time to evaluate and ensure that when you do spend a lot of money you have done your homework first.
With the elections on our front door, if I was in the market to buy a property I'd be keeping my eyes
open as the ‘wait and see’ habit is likely to increase as the election date