colinrealestate

Buying low and selling high is the desire of most investors, but this means understanding how to ‘time the market’ which even the best rarely get right. Super investors like Warren Buffet just buy and sit. He buys shares in sound, well managed companies for $5 and then 20 years later they are worth $100. The key here is “20 years later”.
Property is exactly the same. Property investment should have a minimum time period of 10 years, preferably a lot longer, like 20. This allows you to ride out highs and lows in values and mortgage rates and issues such as periods with no tenants. Property is an excellent long term cornerstone to an investment portfolio.
Contrast property with an active share-trading portfolio, where you buy a stock for $3.50 and sell a week later for $3.70. This is called ‘timing the market’ and requires considerable homework and knowledge of the factors that may affect that company’s share price.
Right now however there is an interesting opportunity to ‘time the market’ in property.

Prices are low compared with three years ago and mortgage rates are low. Therefore it stands to reason that it is a good time to consider investing in property. If you have a 10-20 year investment horizon, there is no doubt whatsoever that property values will be considerably higher by then, boosted by the lower prices right now.
Call us to chat about opportunities that exist right now and how it can become the cornerstone of your retirement portfolio, if it isn’t already.

Filed under: REAL ESTATE, Real Estate | Tagged: Real Estate