Many ways to skin a cat in property investing

property investing - many ways to skin a catThere are many ways to be successful in property.

I’m very fortunate to get the opportunity to speak to many different investors in my role with Everyday Property Investing.  I also read magazines, books, newspapers and property blogs to keep up to date and learn more.

You will hear different strategies from different people and these strategies may have made these people a LOT of money.

Those strategies may be fantastic strategies and if you’re anything like me then you get excited to hear about the many ways you can be successful with property.   There are many ways to ‘skin a cat’ when it comes to property investing.

BUT – here’s the thing….

You can’t do them all.

Sad, I know, but it is really important that you educate yourself about the strategies that may work, then choose what yours will be and focus on it.  Really learn about it, immerse yourself in it, live it and breath it and make it happen.  Too many people get caught up in the hype of ‘the next big thing’ or get on the merry-go-round of seminars and learning and never actually implement or implement a little bit of everything and never perfect their craft.

One thing that you’ll note from many successful people is that they focused on one technique and perfected it.  Think about that for a minute.

I was listening to the recordings of a business seminar recently and one speaker described it like this.  If you jump from one thing to the next all the time it’s like you’re digging a little hole but you don’t find treasure so you move to the next spot and dig a little there, but you also find nothing, pretty soon you’ve dug a whole bunch of little holes in the ground but you just never went deep enough to find the treasure.

You need to determine your one technique and perfect it too.  The importance of focus cannot be underestimated, it will accelerate your success.

The other point that I want to make here is that sometimes property ‘gurus’ will assert that their method is the only method that will make you successful and if you aren’t doing it that way then what you are doing is wrong.  Once again, there are many ways to skin a cat.  So don’t be put off by people telling you that there is only one way to succeed with property investing.  There isn’t.  In fact you are spoilt for choice!

Now read the first part of this post again – and focus on your choice!

 

EPI 042 | What YOU want to know about property investing – Listener Q&A (3)

Well it’s about time!  About time, that is, that we answered some of the questions we’ve been sent over the past few months!

Things we talk about:

We really appreciate the questions that you send in and do our best to answer them individually.  This episode gives us a chance to share our responses with the EPI listeners and discuss the issues that you’re interested in.

In this episode we cover questions from:

  • Robert – Low Doc Loans
  • Tim – Tax Variations
  • Michael – Buying where you know or diversifying your location
  • Dion and Nicki – Buying on a Highway

We have heaps more questions we’d love to cover and so we’ll be doing a few more Q&A episodes coming up to get through them.  We love the great questions and hope you keep them coming!

Quick Tip/Action:

Do a  little ‘property immersion therapy’ to rejuvenate your enthusiasm and motivation for investing – this could be going on a property road trip, reading a property magazine or jumping onto a property website and looking around at what’s available!

Buying off the plan – a bird in the hand?

buying-off-the-plan

Is a bird in hand worth two in the bush?

To those who might be considering buying property off the plan, I am here to suggest that doing so might not always be the best idea.

Take a quick look around property websites and you’ll soon see that there are quite a few properties for sale off the plan. One of the main reasons for this is so the builder can use the money generated by pre-sold apartments to fund the entire project. The benefit to the purchaser is that you may be able to purchase very cheaply, and pay far less (or no) stamp duty. It is worth, however, keeping in mind that as these properties haven’t yet been built, any value we place on them is purely theoretical.

My first investment property was off the plan and I bought it nine months before it was due to be completed. As soon as I signed on the dotted line, I committed the funds for the entire purchase. Two years later, it still wasn’t complete. My financial commitment to this property precluded me from buying any other investment properties. To make matters worse, the completed apartment wasn’t worth the forecast value (but at least it was worth more than I paid!). Ultimately, buying off the plan meant that my beginning in property investing took a lot longer than it could have.

So the lesson to be learned here is that if you’re looking at buying off the plan, you really need to ensure you fully understand all the implications of the purchase;

  1. You will most likely be quoted a value for a property that doesn’t yet exist so you can’t really know what it is worth, you can only guess
  2. You don’t know what the property market will be like upon completion (and for me this was two years after I signed on the dotted line, and over one year late!), therefore any guess as to what your property value will be at that time is pure conjecture
  3. You will definitely hear (from the builder) about the “massive stamp duty savings”. You will save money, but be sure you know your figures (there are stamp duty calculators on most property websites)
  4. As soon as you sign on the line to say you’re going to buy a property off the plan, it means you’ve committed that money. This means that you won’t be able to get a loan using any of that money but you don’t have any equity either because you actually don’t own the property yet. So for the time that your off-the-plan property is getting built, further loans will be very, very difficult to get and you will need to have money elsewhere to be able to continue to invest.

My advice to you when you find a “dream off-the-plan” property, spend a little bit of time considering properties that exist right here and now to see if there is anything similar. Investing in something that exists right now will give you both equity and returns immediately.

In short, be aware of off the plan properties. Nobody knows what they are actually going to be worth when they’re complete. Nobody even knows exactly when they will be complete! If you’re conservative with your investing, like me, buy properties that actually exist. That way you minimise your risks.

And good luck with your investing.

Property Investing in the US: Beware of Uncle Sam!

investing-in-us-propertyKaz:

Isn’t the topic of US property and investing in US property a popular one at the moment in Australia?  I, certainly have noticed over the past year or so, many seminars, speakers and articles related to investing in the US, with it’s cheap properties and the promise of great cashflow. I’m not sure about you, but I am definitely interested.  I haven’t actually taken any steps – mostly because my money is currently tied up in other property projects, but I know that when I have some money available, this topic is absolutely something that interests me.

But let’s face it, investing in another country, particularly one you have no sense of familiarity with can be a little daunting.  If you don’t know what you are doing and haven’t found a suitable guide or mentor to assist and haven’t done your homework then it can be downright foolish!

Lucky for us, we have found a property expert here in Australia who deals with US property and helping Australian investors, Trish Davies and we managed to get her on the Everyday Property Investing podcast to share some of her knowledge with us.

Check out the interview with Trish Davies on US Property Investing here

I know that after speaking with Trish, I certainly would be a lot more comfortable and a lot more likely to invest in the US, particularly with someone like Trish to help me! But – investing in the US may not be for everyone, in fact, Den wrote the article below just days before I spoke to Trish – I’d be really interested to see what his thoughts are now, after listening to the interview!

Den:

Purchasing real estate in America – buyer beware. I regularly read that there are some great buys and a lot of money to be made in American property. The values of many American properties have dropped a lot in the last four years and it means that the yields can be quite good on rental properties in America.

There is a bit of a buzz thing happening at the moment and quite a few people are buying into it. I am often asked why I haven’t invested in the US yet. I’ve read articles about people who are fully confident that it’s the way to go; property is cheaper, yields are better… I’ve heard all this before.

I guess it’s human nature to want to make a lot of money quickly – that’s why certain investing magazines sell so well. Couple this with the emerging “come to our seminar and we will teach you how to invest in the US” market, and you’ve got the potential for someone, somewhere to make some money. It strikes me that quite a few people are buying into the US, and frankly I think they’re being sucked in to a market that’s not great.

My main point is this – if the American property market is so good, why are Americans not investing in it? Not every American is strapped for cash and has lost everything in the global financial crisis, so if the market is really that good, surely there would be enough investment in the US to buoy the US market somewhat. So where does this leave you?

I’m going to sound like a broken record here, but it’s really important to look carefully at any property you buy. Don’t believe hype, always do your own figures and remember that when you are investing overseas, not only do you have the uncertainty of the market, there is also the uncertainty of dealing with foreign banks and exchange rates. Furthermore, you’ll need to factor in complexities in foreign law.Finally you’ll need to make sure you have a great property manager (and I’ve heard some horror stories about property managers in the US).

So if you’re someone who is looking for a high-risk, high-return investment then maybe it’s worth casting your gaze across the Pacific. Otherwise, do what I do – look locally, do your own sums and and due diligence, don’t take unnecessary risks and minimise the chance of an epic failure.

And good luck with your investing.

Summary:

There are a couple of points to make here:

  • Different investors have different opinions and clearly, not all forms of investing will suit all people.
  • You need to understand yourself and your risk profile.
  • You need to do your homework if you do want to try investing in the US.
  • Having a mentor or guide who can assist you in new investing territory can really maximize your chances of success and importantly, minimize your chances of failure!
  • You are the person who is in control of your financial future – you need to be responsible for educating yourself and determining the investing strategies that you are going to pursue.

And if you decide that you want to learn more about investing in the US – do check out Trish Davies, she’s someone who has put in the time and effort to get to know the market, the process and the risk mitigation strategies over many years.

Dire predictions from doom-sayers, or reality about to bite?

property-market-updateIn a media market that seems to be flooded with dire warnings about the Australian property market where we hear of the potential for housing prices to drop up to 60%, what’s really happening? Den does a bit of research, and chucks his own two cents’ worth in too…

I was recently asked to respond to a letter from one of our listeners who seems to have relocated most of his investments into gold and silver. Dramatic move, maybe, but one that is understandable given all the press about the doom facing both property and share investors for 2012. Europe seems increasingly unstable and Greece (and Portugal, and Spain, and Italy, and Ireland, and…) are about to go under… While I’m not an expert in share investing, or in European economics, I’ve had a fair sniff around to find out the real state of the Australian property market, and to make a prediction for 2012.

According to RP Data’s latest figures, Australian property values softened slightly in December 2011 after rising in November. Overall, however, December’s drops did not wipe out November’s gains. Sydney was the only capital city to record gains in December, and Sydney’s prices have risen 0.7% over the quarter. On the other hand, Melbourne and Brisbane fared poorly (but keep in mind that two years ago Melbourne had a bumper year, and Brisbane spent most of last January under water and is still recovering).

RP Data analyst Tim Lawless suggested that the decline in the housing market was slowing – the December quarter’s decline was the smallest for the year. At the same time, rents are increasing (up 6.3% for the year).

None of this data suggests to me that we’re about to slip into a nose-dive. So what about reports that Australians are over-extended with their income-to-mortgage ratio?

One organisation that produces this kind of “property values versus household income” data is the American-based Demographia. According to Property Observer, Demographia’s most recent findings have some data which is inconsistent with the Australian Bureau of Statistics, suggesting that some of this data might be flawed. Ultimately it depends on whether you would prefer to use census data (I would) or data produced by other means.

Either way, I’m not saying that Australian property isn’t expensive – even with the “corrected” data, Sydney is the world’s 10th most expensive city. Melbourne ranks 24th, along with the pumping metropolises of Telford and Shropshire in the UK. Thinking about the quality of life in most Australian cities, I reckon we’ve got a pretty good deal!

Still no alarm bells here for me… But I’ve heard that in real terms, Australian property is amongst the most expensive property in the world…

In real terms, Australian property values have increased dramatically compared to US values over the past three years. I believe the reasons for this are two-fold and have nothing to do with an impending crash in our markets.

Firstly, we are all aware of the US sub-prime mortgage crash. This was brought about by US banks and US-based mortgages on US property – not Australian mortgages on Australian properties. Our banks, love them or hate them, didn’t get into this kind of crazy lending. This kind of lending artificially inflated house prices by making money available where it shouldn’t have been, and to the wrong people. As soon as the lending was exposed, and the “super-bankers” realised they couldn’t keep inflating property values, prices crashed. They had to. To paraphrase, it was the correction that they had to have.

Secondly, the Australian dollar has increased dramatically in value over the past few years. I remember getting $US0.46 for my Aussie dollar. Yesterday I could have bought $US1.06. More than double. When we compare any prices in Australian to the USA, Australia will have become more expensive without us knowing or even feeling it. This increase in value of the Australian dollar will make Australian property more expensive for overseas investors, thus decreasing the demand slightly (and I mean very slightly) but an Australian, in Australia, earning Australian dollars, won’t really feel this. It just provides data banks with some statistical fodder which makes Australian property look very expensive.

The other major factor I haven’t mentioned yet is housing supply. One of the reasons for Sydney’s strength at the moment is an apparent undersupply of new houses. Government grants seem to be making little impact when it comes to building new dwellings, and that could be because the cost of building is still very expensive. Terry Rider from Hotspotting highlights this by mentioning that ABS statistics show that the average new home costs $70,000 more than an existing dwelling, and in some Brisbane areas this figure is around $120,000. If it costs this much to build, why would you take a $10,000 grant and still suffer a huge loss? Better to buy an existing dwelling and save fifty grand!

People need houses to live in. For house prices to continue a decline, the supply-versus-demand ratio has to increase (i.e. we need lots of houses that nobody wants). If this is going to happen then either people need to move to another place, or we need a massive amount of new housing. It’s unlikely that we’re about to see a massive population shift, so that leaves us with the question of where this new housing is going to come from.

I’ve already said that building materials are still expensive. So are builders. With the costs of building being so high, certain prices need to be obtained for building to be financially viable. If prices are to drop much more, building won’t be viable anymore and therefore the supply of new housing will dry up. Sure, we may still find quite a few apartments (as their cost-to-build is lower) being built, but not so many houses.

Finally, it looks like interest rates are relatively stable here, or even dropping slightly. This has made housing more affordable. Further interest rates may increase affordability more without housing prices dropping.

Looking at all these factors I think it’s extremely unlikely that we’re in for a catastrophic crash in 2012. In fact I think our decline is slowing to a point that it’ll turn around. I’m not saying that we’ll be looking at a bumper year for property investing, but property will hold its own. Value increases between 2% and 5% seem to be reasonable. Of course, some markets will perform better, and others worse, but if we’re going to throw a blanket over the entire country then I’d say modest gains.


RP Data – Sydney’s housing pushes ahead while other markets remain soft
Property Observer – Sydney and Melbourne more affordable than Demographia suggests
Hotspotting – Old is better than new

EPI 040 – Investing in US property with an expert – Interview with Trish Davies

In this weeks episode Kaz is very excited to speak to the wonderfully knowledgeable Trish Davies.  Trish is an expert in property investing in the US and was very kind to spend her time walking Kaz through the process of investing in the US –  and all this at a time when the media and property experts are either talking it up or talking it down!

Things we talk about:us-realestate-investing

Action:

  • Send us any questions you have about self managed super funds – we’ll be interviewing an expert in SMSFs very soon!

Property investing advice and what to believe – How to judge a book or article

property-investing-judging-articlesI regularly read articles about investing as well as the general state of the economy. It seems that there are as many opinions as experts, and just about any train of thought will have an expert to back it up. With this in mind, it’s worth considering how to sort out the good articles from the ones that are just plain ugly. And here’s how.

There are a few questions you should always ask yourself when reading an article, regardless what the article says:

  • Who is writing the article? Do they identify themselves (or do they stay anonymous) and are they an expert in their field?
  • What is the purpose of the article? Is this person commenting because they feel passionate about an issue, or is there possibly another motive? Does the author stand to gain from you believing him, or following his call to action?
  • What sources are quoted and how reliable are they?

1.   Does the Author identify themselves?

Authors who remain anonymous must be considered with a high degree of suspicion. If they’re not even going to put their name to their work, why would you believe what they say?

If you do know who wrote an article that you are particularly interested in, google-search the author to see what you find. Sometimes you’ll find a rich history of education, good advice and happy followers. Sometimes you’ll find nothing but the author’s name followed by some kind of scam. Your search should give you a fair idea about the author!

Even with the search done, it’s still worth keeping in mind that:

  • Not everything you read on the internet is true (and this could refer to the article or to any scam claims).
  • Even people with a chequered past may have valid ideas that are worth listening to.

2.  Where is the article written and for what purpose?

property-investing-informationIt’s then worth checking out the purpose of the article and the website hosting the article. Does the website promote a product that the author would want you to buy? Classic examples include websites that suggest property values in a certain area are set to boom, which “conveniently” offer great buys in that same area, or a website that promotes share trading and happens to have a “property investing is doomed” article on it.

Most people, especially beginner investors, feel that there are two options to ‘real’ investing; either you invest in property or invest in shares. It follows that someone who is interested in selling a product to beginner investors would then do one (or both) of two things:

  • Sell how beneficial your kind of investing is, or
  • Trash the other investing style

Now, almost every investor knows that neither shares nor property have been doing particularly well lately. Therefore, in 2012, it’s pretty hard to sell the benefits of short-term ‘how to become a millionaire overnight’ investing for either shares or property. Nowdays any promoter wishing to push a product has only one remaining option – trash the other investing style.

3.  Are the sources of information provided?

Finally, check the sources quoted in the article, and if you have the time, check out the actual sources that are quoted. I’ve seen articles mis-quoted magnificently (or taken completely out of context) to suit an author’s purpose. Newspapers are often quoted, but be careful here – just because an article is in the print media does not make it gospel, and there are plenty of editorials and other articles that I read in newspapers which arouse more than a healthy scepticism in me.

While on this point, I must confess that I do find a good graph quite compelling. Pictures and graphs seem to have the same impact on many of us! Whenever you come across a great image, check out the source and see if you can verify the information independently. A lot of research organisations copyright their own published graphs, so many you see are made by the author and quote figures from elsewhere. Check them out. Can you verify them? If not, then the graph is nothing but a pretty, but irrelevant, picture.

A guide to rating an article

Why not use this simple guide to rate an article out of 10?  Simply select one option from each section that best describes the article:

Part 1 – The Author
The author is a well-recognised authority in this field and I do not see any significant references to this author being involved in scams or bad business practices 3 points
The author is someone who I may have heard of, or maybe they’re new, but their google search stacks up well 2 points
The author was unknown to me and when I checked them out on google I found a very compelling case for them being a con-man OR the author is anonymous 0 points
Part 2 – The Website
The website is an independent news source, or place where I would expect to find balanced articles 3 points
The website is very clear with its motives and the call to action (if there is one in the article) is not related to these motives OR the website is clear with its motives and there is no call to action 2 points
The website has a clear motive that is related to the call to action 1 point
The material is clearly advertising 0 points
Part 3 – Sources of Information
The information I checked out was all valid and is from a reliable source 4 points
The information I checked out is valid but not all of the sources are reliable, or some of the sources do not show their data 3 points
The information I checked out is mostly good but some may have been taken out of context 2 points
Some of the information I checked out is correct but a lot of it seemed somewhat different to what was quoted in the article 1 point
There were no sources shown OR The information I checked out was generally taken out of context or changed to suit the author’s purpose 0 points

 

Generally, if I read an article that doesn’t score at least 6 points, I won’t pay much attention to it.


property investing

Right now, both Kaz and I agree that we are in part of a property cycle that has seen values soften. We don’t know how long it will last and we don’t know how deep it will go. What we do know is that the property market has always been cyclical – history tells us that it’s bound to recover sometime.

Kaz and I are still investing in property. We have our money where our mouth is! We believe that the fundamentals are still in place for real estate to make a good recovery and to supply us with a consistent income. Do your experts do the same? Where are they investing? Maybe that’s the ultimate test!

EPI 039 | Property Investment Finances Made Easy

In this weeks episode we tackle some topical banking related issues – including interest rate cuts and interest rate hikes, the reserve bank of Australia, fixing interest rates and investing in a difficult economic climate.

Things we talk about:

  • Property Investing
  • Investing in US property
  • Reserve Bank of Australia
  • Interest rate changes
  • Big banks and other lenders
  • Fixed versus variable interest rates
  • Exit clauses for property investment loans
  • Investing in a difficult economic climate
  • Positive cashflow property

Action:

  • Assess three different loans
  • Look at any existing loans that you have and understand your exit fees if there are any

Our preoccupation with Interest Rates

Interest Rates

 

I’m not sure about you, but sometimes all the media talk and focus on the ups and downs of interest rates seems like such a waste of time and energy to me.

Sure, I like to know what I’m paying for borrowing money, but the reality is that I can’t change the level of our interest rates, so if I want to borrow money at any given time, well then, it is what it is.  I have to pay the market rate – mind you, the best offered market rate product that I can find – but the market rate nevertheless.

The thing I find perplexing is when I hear people saying that they want to invest in property, but they’ve heard that interest rates are going to go up.  Technically, they are correct.  Interest rates will go up.  If you have a mortgage over a period of time, you will no doubt find that interest rates will go up….and they’ll go down….and they’ll go up….and they’ll go down….you get the idea, right?  Interest rates are cyclical.

What affects interest rates?

The Federal Reserve Bank of Australia (RBA) are charged with monitoring and maintaining the stability of our overall economy and they do this by responding to the ups and downs of the countries economy with adjustments in interest rates.  It’s a bit of a balancing act as they try to prevent rapid growth leading to rising inflation and price growth and on the flip side, they try to ‘speed up’ the economy when it’s slow to ensure reasonable employment rates and keep people buying.  So in very general terms, balancing interest rates is about inflation and employment.

If we think of the economy as a see-saw with inflation at one end and recession at the other end, the RBA are the little bloke in the middle who is edging a bit toward one end then back toward the other to keep the see-saw balanced!

It’s about supply and demand.  An increasing demand for credit will see inflation start to go up and interest rates will be raised, whilst a decrease in the demand for credit will see the economy slow and interest rates will be lowered to get it going again!

Global economic conditions can also have an impact on our own economy, as we have seen of recent times with the ‘Global Financial Crisis’ (GFC), or the ‘KFC’ as I like to affectionately refer to it!  I’d much rather think of fried chicken than the fried economy!

Governments don’t directly decide on interest rates.  The way they handle monetary decisions can impact upon the economy of the nation, however, which can influence interest rate decisions.  This is why you will hear people talk about how interest rates went up under a [insert Liberal or Labor] government – you’ll particularly hear that around election times!

 So what can I do about interest rates?

You can know what they are and factor these into your purchase decisions.  

I would always recommend when you are ‘running the numbers’ on a property deal that you use interest rates that are at least 1-2% higher than the current rate.  This will mean you know when interest rates rise, and they probably will at some point, that you are comfortable with your repayments.

You can shop around for the best deal when you are looking to buy a property.

Remember that you are in charge of the mortgage that you get.  Assess the options, compare rates at different banks/lenders, negotiate a better deal.  Don’t worry about ‘bank loyalty’ – trust me, banks don’t worry that much about yours, even if you’ve banked with one bank all of your life, this should not be a factor in your mortgage decision.

You can approach your existing bank for a better deal, or move banks for a better deal.

Here’s a great tip.  Pick up the phone and speak with your bank about what sort of a great deal they can offer you on your current loans.  Tell them you really want to make sure you are getting the best deal so you are doing some assessment of your current loans and interest rates.

Recent legislation meant that banks had to remove their exorbitant exit fees, making it easier for you to move your existing loans.  Do make sure though that you fully assess all fees and charges associated with exiting one loan (if your loan was setup before the recent no exit fee legislation then it may still have fees) and all of the fees associated with setting up a new loan.

Don’t worry about ‘what they say’!

Educating yourself is the key to not having to worry about ‘what they say’.  When I hear people talking about how they’re not going to invest because interest rates are going up, mostly, I just smile and nod.  I am comfortable enough with my investing knowledge that I don’t need to be preoccupied with minor interest rate fluctuations and the opinions of other people (who mostly, don’t even have property investments).

Today’s Property Market – Buy, Sell or Hold?

Property market direction

 

Today’s property market seems increasingly confusing and difficult to read. Certainly I feel that I am being bombarded with all sorts of stories in the news and in financial papers; a market bubble, a housing shortage, mortgage crises and so on.

With this in mind, I thought I’d reflect on whether today’s market is a good place to buy, sell or hold. There are, and there always will be, some important factors to consider.

1. Interest rates:

Interest rates determine the ease which we can afford to borrow for our purchases. Right now there seems to be talk that interest rates are headed down again. It seems, however, that this could change at any tick of the clock. Personally, I think that for any calculations made regarding property affordability, interest rates should be estimated at at least 9-10%. After all, you hold property for a lot longer than the short term. Best make decisions keeping in mind a conservative, long-term interest rate for your calculations. And if, as the pundits suggest, interest rates do drop then you’re at an advantage and can pay off your loans faster!

2. The many Australian property markets:

There isn’t just one property market in Australia – there are many. Even in the same location you might find that there are a few markets; the unit market, the first home buyers market, the established family market, the retirement market and so on. This is the reason why some statistical tables can be misleading – one location may have four or more different markets working at the same time and a median figure doesn’t take this into account. Rather than ask if now is a good time to buy property, look at where the opportunities might be. There are so many mini-markets in Australia right now that there will be good buys somewhere. All you have to do is find them!

3. Timing in the market isn’t as important as time in the market:

There’s an old real-estate investor’s saying that the most important thing is the time you’re in the market. Long-term investors sail through the tough times and enjoy the good times because, in the long run, property is a great investment. If you’re looking for a quick profit then property might not be for you (unless you are either very lucky or you have specific skills that can bring about quick profits in any market – and I don’t think these are ever without risk!). If you’re here for the long haul then perhaps the timing isn’t as important as some people suggest.

4. Do what everyone else isn’t doing:

Several experts (including American share billionaire Warren Buffet) say that the real money is to be made in bucking the herd, not following it. If common feeling is that property should be sold then possibly it’s a good time to look around for a purchase or two. In times when lots of people are selling there have to be some cheekily good buys around! Don’t be afraid to buck the trend – you never know, you might just end up as the next property millionaire!

5. Nobody knows:

Reality is that nobody really knows precisely when the market has bottomed while it’s happening. And nobody knows when it peaks either. Hindsight tells us these things. The best you can do is to complete all your research, get to know an area, understand the driving forces in that area, do your due diligence and make educated guesses. If we look for signs that perhaps things are strengthening then maybe we’ll be right. Maybe.

These are just five points to consider, and there are many more. Opinion will always be divided when it comes to buying and selling real estate (and any other asset for that matter). Ultimately the decision is yours and you can never be sure. As long as you do everything in your power to make sure you buy (and sell) well, that’s all you can do.

And good luck with your investing!