Over the weekend I started this new blog. The first thing I did was to tell my friends and family. One of the reactions was... 'I am not buying any property NOW!' Why? 'Because the property market is coming down'.
My first reaction was shock, but then I realised that this is the view of most people at the moment. Well, most of the non property investors think so, because over the last week I placed an add on the internet about property for sale and 25 property investors contacted me. I was pleasantly surprised to see so many investors looking fot opportunities in the property market.
It is not easy to look the other way and not follow the herd. I had my doubts, but then I read about what Warren Buffet and Donald Trump had to say about the current market and I know I am not wrong.
Warren Buffet recently said ' be fearful when others are greedy and be greedy when others are fearful'. I love that one. Yes, he is a stock investor, but you can apply that saying to any market.
Donald Trump is saying '...invest while the market is reeling...'
I don't know where his market is going, nobody does. But following the herd has never worked. Doing the contrary thing makes sense to me. If I look at the current opportunities out there, this must be the best time to buy since the last correction in 1998-99. I remember Hannes Dreyer saying in late 2004... 'I am not buying now, you must be mad!' And I thought he was mad. Well today you can buy property at 2005 prices, you just need to shop around.
The discount properties are out there. I see them everyday. I believe it is the time to buy. If you are waiting to see what the property market is going to do, you might be missing the boat...again. Many property investors have been waiting for 3 years for the market to turn. The peak was in 2005 when property prices leaped 32% that year.
This is the time that we have been waiting for. There is no question, just go and buy those bargains. If you don't find any, I will post them here and help you.
Happy property hunting!
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2 comments:
I also believe that now is the time to BUY and hold. The market will turn again and I you bought low, you will be in the money.
you have to do your homework how eve, don't buy high, or you will lose money.
Well with a username like that you must say Yes 2 Property! :)
Just joking. But back to the point, this is the best time to buy in many years. The funny thing is, most people are to scared to jump in now. They think it will fall even more. Yes, it might, but if you are buying a property that is 15-30% below market value you can not lose. Even if you are scared that property will fall further, you can do a quick property flip.
Your best bet is to hold long term for steady growth, and compound growth. Buying a property below market value gives you more options.
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