Buy, Sell or Wait?

If you are like most people you're probably wondering, what is the right thing to do in the current property market!

Identifying the best time to buy or sell real estate is difficult because the property market is influenced by numerous factors and can be unpredictable at the best of times. However, here is some general knowledge and information that may help you make an informed decision.

Don't fall for media fearmongering. Property investment is a long-term game, focus on the bigger picture. Despite negative media doverage the Australian property market remains one of the best places in the world to invest in. Property markets acrtoss Australia appear to have bottomed out and are now on an upswing.'

Learn to differentiate between noise and media reporting, by understanding that they are a business, and for business reasons, they may not always provide the full story.

It's natural to fear the unknown and the media knows this. That's why they are always reporting on the latest crisis or the latest disaster, the next big threat or impending doom. There's been countless sensational headlines warning the imminent collapse of the property market for as long as I can remember.

This kind of sensationalist reporting is their bread-and-butter way of reaching a wider audience which generates more revenue for their business. Welcome to journalism.

Here's the bigger picture.

Australia has a housing shortage, and it will get worse as our population is projected to grow substantially over the next few years. The increase in population will create strong demand for property.

This is why the property markets are up, driven by the dynamics of supply and demand. Interest rates are near their peak. But high interest rates and growth in property values have historically moved together at the start of the upturn in the property cycle. We are at the cusp of a new upswing.

Real estate is one of the best hedges against inflation.

Although property prices may go up or down over the short term, the market has always trended upwards over the long term.

Finally, your personal circumstances and financial goals should always play a significant role in determining when to buy or sell.

~ by Paul KLounnas, Hudson Bond