Warren buffet
once said, ‘Buy when people are selling, and sell when people are buying.’ As an investor it is important to know where the
market is within the cycle to ensure you secure your property at the right
point of a cycle to maximise your returns. Below, two news articles making
reference to Manhattan real estate prices over a space of two years.
2014:
2016:
Understanding where we are in a cycle could help you make a decision about whether to buy or sell property, depending on whether you think values are likely to grow, stagnate, or decline.
Boom Phase:
-
Properties
often sell for more than their asking price.
-
Buyers
out number sellers.
-
Generally
the shortest of all the cycles.
-
Real
estate prices are going up.
-
Buyers
are stretching their finances to purchase property.
-
Not a
great time to purchase real estate
Transition Phase (Boom to downturn)
-
Not a
wise time to buy real estate.
-
Outer
suburb real estate prices start declining.
-
Auction
clearance rates are declining.
Downturn Phase
-
Oversupply
of property’s on the market.
-
Properties
sell for less than their asking price.
-
Real
estate prices are going up.
-
Sellers
out number buyers.
-
Increase
in bank foreclosures.
-
Great
buying opportunities.
Recovery Phase
-
Transition
from a slump to a boom.
-
A
great time to purchase real estate.
-
Prime
real estate pockets start increasing in price (inner city).
We welcome your questions and feedback. If you would like to ask a question or leave a comment, please email info@wiserealestateadvice.com.au
No comments:
Post a Comment