There is plenty of evidence that our property markets have changed…
From the hot “sellers’ market” of the first half of this year, when vendors called the shots and the price of many properties increased at a dizzying rate, to now when there are many more properties for sale, but buyers are a little nervous and holding back their purchase decision.
We are in what is called a “buyers’ market” where homeowners and investors now have the balance of power on their side.
My question to you is: if you are considering investing, are you taking advantage of the buyers market?
While experienced investors love these markets because they have more time to make decisions and can negotiate with more effect, it seems that many beginning investors find it easier to decide not to buy.
Why is this?
I guess one reason is that in a sellers’ market less experienced investors gain comfort knowing everyone else is buying. The buying decision is so much easier when we see lots of others around us doing the same thing. We feel it must be a good decision.
I’m sure you’ve read of the frenzied market action that always seems to take place before a major downturn in both the stock market and the property markets. However at the time that all seemed to make sense.
Yet when it comes to making that decision to buy in one of these softer buyers’ markets, we seem work on the notion: “I guess there must be something all those “non-buyers” know that I don’t know.”
I’ve found that when all the news in the media is good and breeds content; happy, self assured people are comfortable making decisions to buy stuff like homes, investments and cars.
However at times of uncertainty or when we get bad news or mixed messages in the press, this does not breed ‘happy people’.
One thing is certain: we can’t accurately predict the peaks and troughs in the market. Yet we can sit on the sidelines and wait until the market starts rising again and then compete with the new herd of confident buyers.
This group of investors will always pay more than those who are looking for good deals in the quieter buyers’ market. In times just like this.
The bottom line is that this will only be a buyer’s market for you if you buy. As an investor you need to take a long term view, do your homework and research carefully to make sure you don’t overpay and go out and buy that property today that you would have had to fight much harder for a few months ago.
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