What Is The Market Cycle?
What is the market cycle? Lately, the property market has resembled a flat tyre more than a cycle. But history shows that what goes around, comes around.
So when is the market right to build your next investment property? Given that news headlines change on a daily basis (sometimes within the same publication) it is hard to know. Well, the short answer is “anytime”; as long as you do your due diligence and work out what is best for your own circumstances. There are opportunities to be had in both a slow or booming market. The only catch is that you can’t have it both ways at the same time, or can you?.
If the market dictates a bottoming out in house values, this generally means a lower buy in price and faster build times. With the Perth market starting to show signs of recovery, now is definitely the time that you want to be buying in and building your next property. Buying at the bottom and building in an upturn market generally means that your ‘on completion’ value will be increasing during the build.
If you sit on the sidelines and wait for the market to boom, you will be paying more at buy in and risk another downturn by the time your property is complete.