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When's The Right Time

Mark Honeybone explains why getting your buying timing right isn’t always crucial to a successful property investment.

By: Mark Honeybone

1 June 2019

When’s the best time to make money from property? Well, some may say after the market has crashed; others will say when it is just about to recover; and those who have experienced multiple cycles might say during the time a small town near a large one is hitting new heights.

All of them are right in one way or another, but you have to ensure you get the buying timing perfect so you can get the best outcome.

Some people are never sure when the timing is right and never buy. Others get disappointed when they buy, but miss the boat by six months or a year.

The great thing here is that there are so many successful buying strategies. Different approaches suit different people depending on lifestyles, finances, risk tolerance, etc.

There are many property investors using great buying strategies. From the buy-and-hold investor who pays principal and interest loans and ends up with one or 10 freehold properties over a lifetime; to the trader who buys and sells every couple months; to the developer who subdivides; to the renovator; or even to the investor who only purchases off-the-plan properties (my own strategy for the next few years) - everyone can have their own success story through a well-planned strategy.

So it comes back to the original question: when is the best time to make money from property? The best time to make money through property is when you “buy” no matter what strategy you use.

Once you have bought a property, there is no going back. The market will do good and bad things in any area. One day, tomorrow, or 50 years from now, the value of that property will be what it will be unless you overpaid for it and then it’s too late.

I’m not saying you must always buy a bargain. There are many reasons to pay value or even higher. It may be your own dream home, you may want to buy the place next door too, you might see value that others don’t, you might know the area is about to have a boom, the cash flow might be so damn good it is worth paying more than it is worth.

So, How Do You Maximise Your Chances Of Buying Well?

• Know the area. Right down to the street and what side of the street is better.

• Become an expert and know which building structures are more popular. Learn what a two-bedroom versus a three-bedroom versus a four-bedroom is worth.

• Door knock on places you’d like to buy.

• Talk to a good real estate agent who understands what you are looking for and has suitable opportunities.

• Research how close to public amenities or public transport the property is. This is something I always look at (especially when I buy off-the-plan places). It is important for both future buyers and renters. If you buy a property under value in a great location, you are onto a win.

• If you’re looking at buying an off-the-plan property, buy during the first or second round of prices and if done correctly, you make money before settlement no matter what the market does (within reason).

Remember you make your money when you “buy”, it doesn’t matter what type of market you are in. Obviously, this becomes more important when you are near the height of a particular market, as it lessens the risk moving forward.

Property Ventures is a licensed Real Estate Agency that specialises in investment property throughout New Zealand. They also have the NZ Property podcast/YouTube series where Mark interviews the property experts from around the country helping hundreds of thousands of investors. He can be contacted at [email protected] or 0800 NZPROPERTY (697767) Or watch the Podcast/YouTube video at www.propertyventures.co.nz/podcasts

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