WHAT IS THE BEST TIME TO BUY PROPERTY?
Do you want to invest but feel like it’s not the best time to buy property? Maybe you want to settle down and start a family first. Or, maybe you have kids and want to wait until they are a bit older.
Maybe it’s the market you are wary of. Are you waiting for the start of the next boom? Perhaps it’s ‘the right’ property you are waiting on? Or, do you want to see where interest rates go over the next few years?
There are many people out there who would like to invest in property but can’t pull the trigger. No matter how much they’ve saved, how stable their income is or how much equity lies buried in their home, they just can’t decide on the best time to buy property.
WELL, GUESS WHAT? THE BEST TIME TO BUY PROPERTY WAS YESTERDAY
Thankfully, the second best time to buy is today. It is time to let go of your excuses, look at the reasons why you haven’t invested yet and weigh them up against all of the money you could have made if you took action yesterday.
Once you tackle your uncertainty and fear of financial commitment, it is possible to take those first few steps towards making it happen.
WHAT’S YOUR EXCUSE?
This quote sums up the way we use excuses to prevent ourselves from taking action.
According to neuroscientist, Dr. Claudia Aguirre, excuse making can be thought of as “self-handicapping” behavior that “stems from a deeper, unconscious desire to protect ourselves (our Ego, if you asked Freud) against anxiety and shame.”
It is a way of shifting responsibility from our own actions to other, external factors – so that we don’t have to face up to the fact that we are the ones at fault.
Although excuse making protects us from feeling anxiety and shame, it also takes away our power to make positive change in our lives.
In fact, according to Money Mentor, Adrienne Dorrison, one of things which sets aside successful people from those who fail in business are whether or not they make excuses.She says,
“No successful leader or entrepreneur makes excuses for their inaction or action gone wrong, they make things happen regardless of the situation or circumstance.”
Co-founder of Wild Creations, Rhett Power, agrees. He says he exposes his own excuse making by constantly asking the following question: “Is this true?”
If the answer is no – then it’s an excuse. If the answer is yes – then it’s a reason.
WHAT’S THE REAL REASON YOU HAVEN’T INVESTED?
If you haven’t been able to set your investing in motion it could be for a genuine reason. Maybe you can’t service a big enough loan, or maybe your income is not secure enough for the banks. If you haven’t saved an adequate deposit, or you don’t have equity to tap into – then these are good reasons.
It is important to scrutinize your reasons and find out if they are excuses in disguise. For example, you may think that you can’t borrow enough to start your journey as an investor, but is this the truth, or just an assumption?
Thorough research into your position will help you know for sure whether you are in a good way to invest. And, if you’re not, talking with a finance strategist and property investment expert will help you to fill in the gaps and plan how to get there.
ARE YOU SCARED?
Most excuses stem from fear. Whether it be fear of failure or fear of suffering, fear of disaster – or even just fear of the unknown, if you are making excuses and you find they are not true, the reason behind it is most likely to be fear.
It’s okay to be fearful. Fear protects us from doing dangerous things. On the other hand, however, it can prevent us from stepping outside our comfort zone. If we can’t step outside our comfort zone, then we can’t grow as a person and we will find it almost impossible to make positive change in our lives.
WHAT COULD HAVE BEEN IF YOU TOOK ACTION YESTERDAY?
Nathan Birch, investor of more than 200 properties and co-founder of Binvested, says while many people run away from the risk that property investing carries, he was more fearful of the risk in doing nothing. Doing nothing meant he would be stuck working at a job for which he had no passion, well into his older years, while slaving to pay off a modest home.
By using his property investing as a vehicle, he is now finalising plans to build his dream house … well, technically it’s a mansion.
Sometimes we just need to put things into perspective. If you were in a good position to invest 10 years ago, but you didn’t take action, imagine how much money you could have made if you did. You would be in a very different position today if you had invested in the Sydney market in 2006. If you played your cards right you would potentially have an established foundation portfolio ripe for consolidation with a passive income stream emerging.
Since you didn’t take action then, you don’t have these things now. You have also missed out on countless opportunities to buy properties for cheaper than they are now – but that doesn’t mean you should lose hope altogether.
THERE ARE ALWAYS OPPORTUNITIES OUT THERE
In any market, there are great opportunities to be had, however, this is no reason to sit back and relax about it. Your potential wealth is being stolen from under you with every passing day! You won’t get the same deals today as five years or even two years ago, but you will still find deals that will make money in the near and distant future. In fact, if you can purchase the right property in line with a sound strategy you can still create equity quickly which can potentially help you build that high performing property portfolio you dream of.
If you don’t believe this is possible, just take a good at the Binvested Property Deal Vault. Every fortnight, we showcase the properties that Property Investment Agents have lined up for our clients. Time and time again we pull out properties that have doubled in value after a few years while also having a strong cash flow.
THE IMPORTANCE OF MINIMISING RISK IN YOUR INVESTING
I know what you’re thinking. There are some big risks in property investing – just like there are in any financial venture in which you have to lay down money. These risks are magnified by the fact that you are using borrowed money – and a lot of it.
This doesn’t mean you should run away from property investing, it just means that you should minimise risk as much as possible by devising a well thought out strategy, complete with contingency plans and both asset and income protection, and steer well clear of the wrong kinds of properties.
If you can take every step to prevent things going wrong, and also have a plan in place to cover yourself if they do, then you will be able to move forward with peace of mind. An experienced team of experts can guide you in putting each of these puzzle pieces in place.
This is the most effective way to work past any fear of uncertainty or fear of financial commitment you may have. Having an action plan that addresses risk allows you to rationalize your fear while taking positive action towards achieving your goals.
LEARNING TO TAKE THOSE FIRST FEW STEPS
Once you stop making excuses, a world of possibility will open up. Before you start looking for properties, make sure you take the following steps.
1) UNDERSTAND EXACTLY WHAT YOU WOULD LIKE TO ACHIEVE BY INVESTING
Do you want an early retirement? How much passive income would you need for the sort of lifestyle you would like to live?
2) WORK BACKWARDS FROM YOUR END GOAL
How many debt-free properties would you need to own to achieve the level of passive income you are aiming for?
3) FIGURE OUT HOW YOU COULD ACHIEVE THIS
Would you need to purchase twice that amount of properties and wait for them to double in value before you could consolidate and achieve an unencumbered portfolio?
4) SEEK EXPERT HELP TO MAKE IT WORK
– A trusted financial planner can help you identify your savings capacity and find ways to close the gap between what you can save and what you need to save.
– Property investment experts can help you develop a strategy based on the types of properties you should purchase and the best order in which to purchase them.
– A strategic mortgage broker will find the best lenders to support your needs as well as set up the right borrowing structure to give you mileage.
– A specialist property accountant with experience in helping investors build large property portfolios can help with taxation and ownership issues.
– A solicitor will show you your rights and responsibilities along the way and prevent you from making the wrong legal choices.
Once you have the right success team of professionals around you and a strategy to guide you on your way, there will be no more excuses to hold you back.
So, don’t waste any more time. The best time to buy property is today – not tomorrow.