People always ask me if now is the right time to invest in property and my reply is always the same.
“It sure is. After all, they are not making any more land.”
This little round planet we call home has a limited amount of land for us to live on. Regardless of whether it is a buyers’ market or a sellers’ market, people need a place to live.
In other words, the time is ALWAYS right to invest in property.
“The best investment on earth is earth”
Sure, you might need to change strategy to suit the market conditions. At times it makes sense to focus on flipping properties. At times it makes sense to buy to let. If you keep in mind the golden rules of property investing, you will make money regardless of what the market is doing.
Rule # 1: You make money when you BUY. Make sure you ONLY buy when a property makes financial sense:
it must be able to look after itself. You never want to be funding your tenant’s lifestyle and if you have to pay anything at all towards that property on monthly basis - that is exactly what you are doing. Don’t.
there must be a twist to the deal, a way to ensure that you can do some kind of improvement/enhancement/refurb to the property to increase its value to MORE than you paid for it. Way more.
Rule # 2: Buy with your calculator, not your heart.
The glossy brochures advertising the new development in a secure lifestyle estate lure you in with promises of great returns. Unlikely. The money has already been made on that property – and it wasn’t made by you!
What about the Saturday Property Section of the newspaper? Nope, not there either. The estate agent adverts shout loudly about the next hot investment property, available for a steal. Go ahead, do the maths, run the numbers but I am willing to bet you will find the numbers don’t make sense.
In the timeless words of Zig Ziglar:
“Success occurs when opportunity meets preparation.”