There are many predictions saying that H2 2014 would see price recovery. Actually, have you ever thought about what does it mean by recovery in H2 2014? It means that prices may either start going up in July or August or September or any months after that. Ever noticed why no one ever said, it will recover on 24th June 2014? The truth is, no one knows. If they know, they do not need to give predictions, they will quietly borrow LOTS of money and make huge profits and go do whatever they like to do.
Assuming price would recover in H2, do you buy today, tomorrow, later or maybe better wait longer? If you buy today, your total transaction would only complete by June / July, by then the prices would have started to go up. Do you sell? Or do you wait till closer to H2, so that you can already see the signs via business reports or analysts analysis. In case you have forgotten, any report about what has happened, will only be released after it has happened, not before. I hope you agree, unless of course you happen to be an analyst who can write a report before anything happen.
Never ever jump into buying anything. It’s called suicidal buying. Never wait too long to buy. It’s called impossible buying. If you believe any report and start buying, it’s called simply buying. All three conditions are not the right one to buy. Conditions should only be set by you after reading through as many reports as possible and decide based on what you intend to achieve in life with your property buy.
My friends, always buy value and sell value. Use rental as a benchmark because property prices may go up suddenly but rental is a sticky point. It does not change suddenly. If the property you are about to buy has a good rental and many people are looking to stay there and the rental yield is still positive, just buy. Time and tide waits for no men. In terms of property, the earliest buyer catches the property. Question is, are you?
written on 4 March 2014
Next suggested article: The story of coffee and property
