Posted on April 20, 2023 in

Mastering the art of buying property at the right moment

Timing the market in real estate investment is crucial for wealth creation. While some investors focus on time in the market, successful ones take matters into their own hands. They often look for uncapitalised areas to invest in and predict where the market is heading to maximise profits.

Mastering capital growth

Investors need to work their capital as fast as possible to capitalise on the expected growth in the real estate industry. Understanding the different markets and buying in upward-trending areas is necessary for smart investment decisions. Australia and New Zealand offer various state-based property market cycles that provide opportunities for investors to move their money to the next lucrative location.

Mastering counter-cyclical strategy

Affordability and sales volume are two principles that excite or deflate a market. Sales volume has a direct correlation with sentiment, and when people are not buying, investors can secure smart deals. On the other hand, when people are buying, investors can sell and make a profit. Running counter-cyclical to the mindset of other buyers is essential for psychological purchasing, as following the crowd can be harmful to an investor’s bottom line.

Mastering market limitations

Understanding market limitations is critical for any investor. Every market has a limit, and a market can only sustain so much before becoming too expensive or oversupplied. Local markets tend to perform strongly and steadily without experiencing extreme highs and lows like global megacities such as Dubai. Markets with diverse economies tend to inflate and deflate but still rise in value consistently.

Mastering ‘timing the market’

Most buyers purchase real estate too late in the cycle, and research shows that up to 80% of them make this mistake. Smart investors pounce on market capitalisation by following guidelines that indicate future boom areas. These guidelines include interstate investors buying into the area, high auction clearance rates, and local investors beginning to return to the market. When opportunity knocks, timing the market becomes crucial rather than just relying on time in the market.

To analyse market sentiment to the best advantage, investors need to understand the volatile components of the marketplace and avoid extremes. The real estate industry provides opportunities for smart investors to predict future trends and capitalise on them. By understanding the market and being counter-cyclical to the mindset of other buyers, investors can secure smart deals and maximise profits.

If you have any questions about how this situation might affect your investment, make sure you get in touch so we can give you the best advice possible.