John McGrath advises people to buy property for the long term, focusing on personal timing rather than market timing.
“Simply buy when a great property comes along that is within your budget and then hold it for the long term to catch the next wave or two of major growth.”
Specifically, John suggests “the best time to buy is either week one of a two or three-year boom or the final week of a downturn”. And in Sydney and Melbourne markets, prices are close to floor price – the perfect opportunity for buyers willing to go against the crowd.
Without knowing how to pick the bottom of a market, McGrath speculates the best option in Sydney and Melbourne today is to “buy a high-quality asset, when a really good one becomes available within your budget at the 10-15% discount available right now”. Not only will you pay less, there be far less competition and you will be paying low interest rates, with wide opinion of one or two cuts planned in the near future.
First home buyers and upgraders stand to benefit the most from today’s market conditions with first home buyers often receiving help from family members and usually looking to apartments for affordability. The impending oversupply of apartments also means there is greater choice with generous grants and stamp duty discounts to take advantage of. Upgraders selling and then buying back into the same type of market can also do well, winning back the discount they lost when they sold their place.
With property a key avenue for wealth creation, John recommends that “it is smart to keep your eye on the market and regularly consider whether current conditions present an opportunity to buy, sell or invest”. In John’s view, now is a really good time to consider that proposition.
Original article: Switzer Daily, March 26, 2019
For the original article as it appeared in the Switzer Daily, click here.