There have been a number of articles of late stating that the last 6 months have seen prices fall the fastest since they started recording the data in 1980. I wasn’t old enough to understand too much about what happened in the early 1990’s but I knew it wasn’t good. While this downturn may have seen higher percentage losses in property prices it has been a much softer landing and we have not seen the wholesale sell offs we did in the early 90’s which included much worse economic conditions and a recession.
The main thing we consider at Nyko Property is how to buy into the locations and markets with the lowest risk – trying to time the market is futile. The only time we can safely call the bottom is when it goes back up again. Investors, as always, should focus on buying high-quality assets when they can comfortably afford them. Even the most successful investors in the world like Warren Buffett recommend against trying to time markets. But one thing is for certain, it is always better to buy when the market has slowed rather than when it has peaked.
This concept is called counter cyclical investing and is a popular strategy of the aforementioned Warren Buffett. Counter cyclical investing is when investors purchase a property when the market cycle is at a low point. Most investors, especially those in property who don’t get the right advice upfront, purchase in a rising or hot marketplace. A hot marketplace is the most complicated to buy in, with developers and re-sellers demanding top dollar for their investment. This is normally well above what a normal/corrected market would offer
Counter cyclical investing is a safer alternative if done correctly and offers more opportunity for growth in the crucial first 2-3 years.
Nyko Property has one of the largest listings of new property in Australia with over 400 projects and 6,000 individual new properties ranging from apartments, town houses, units and house and land packages all over the country. The strength of our huge developer network and strong relationships is being able to find the diamonds in the rough with the best discounts and incentives available in the market. The secret is to find high quality property with motivated sellers and that’s where we can help.