Should I Buy Now Or Wait Until The Property Market Drops?
Note: The video was filmed in portrait mode rather than landscape, which is why it is narrow rather than wide. For the best viewing experience, I recommend you click the Full Screen mode button.
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An extremely common message I get given from potential home buyers is something along the lines of “I think I’ll just wait a bit until the property market drops (and prices go down)” before purchasing a home.
Now, with the current high inflation rate and rising mortgage costs, I can totally understand the desire for home buyers to want a MUCH lower price. That’s just normal when it comes to a huge purchase like a property.
However, how realistic is it? What’s the likelihood of the market dropping and home prices massively reducing?
Well in this video, I share my thoughts on that topic. You might be surprised (or perhaps not…) at my recommendation.
This video segment was pulled from a long interview I did back in Feb 2022, where I answered a heap of frequently asked questions (FAQ) about real estate.
Once you’ve watched the video, let me know your thoughts in the comments below.
So quite often, people who are trying to time the market, I’ve never seen it work.
To be honest, I’ve never seen, I’ve never seen the timing get spot on.
So I remember back to 2020, COVID, mass announcements, markets going to crash.
20%, 30% was going to get wiped off the value of property, it was all just doomsday.
Didn’t quite see that happen, did we?
In fact, we saw in 3977 and the surrounds, we saw up to 15 and 20% gains, not losses on prices.
If you look back over time, I bought my first home in Cranbourne back in the uh late nineties. So I’m a little bit, a little bit older.
I bought that house for $90,000.
If you can tell me when the market is going to drop drastically to go back to that level, then we’re all on a winner.
But over time, property has never, ever, ever, ever gone backwards.
Unless, you had to sell at a a certain time for a certain reason and you’ve bought short term.
Property is a long term hold.
It’s not necessarily something that you can cash in and cash out every six months or 12 months and make money. It doesn’t happen.
But if you are carrying it over the medium to longer term, it will always appreciate.
And the amount of buyers that we have seen who wanted to keep saving to have no lender’s insurance and things like that, only to find out that in the time it took them to save that extra money, the market went up by that much again and they were still priced out.
So, you basically have to look at what it’s costing you to actually wait, because it will be significant!