Timing

So what’s the best time to buy?

We believe it’s always the right time to buy if you have found the right property.

Predicting the property market is difficult. People are nervous in the current market where prices keep moving.

So what do you do? Some are delaying buying. This may prove a good move since in Melbourne from 1990 to 1992 when Toorak, Melbourne prices fell dramatically. Or, it may prove to be of no benefit – for example, in the Sydney vs. Melbourne war, where the Sydney property median jumped 50% above Melbourne in one year in the mid-1980s, and has remained well above our prices since then. More recently prices have rocketed in 2005 and 2006 – but only in some areas and for some types of property.

Elsternwick, 17 Regent Street: Happiness is an auction going to plan for Charlie Chaplin (alias Bill Stavrakis) and his vaudeville sidekick Angelos Stefanis, both of Biggin and Scott. Seven bidders. Bought for $1.39 million.

The gap between the “haves” of inner Melbourne and the “have not’s” of outer Melbourne has grown wider and wider in the last decade. It’s also grown wider even within suburbs in the last few years. Will this trend continue? Quite likely. That’s because our population, wealth and migration increases confirm rising demand, while supply is restricted in Melbourne.

So if that continues, how much is really going to change in six months or a year in terms of the right time to buy?

It’s true that investing in property is about buying time, not real estate. Property prices move in cycles, and over time the market goes up in value. That’s the reason why we recommend buying for the long term. Then you’re not trying to beat the short-term swings of the market.

Even though we’re operating in a boom market, you don’t want to pay $1.5 million when a house is worth $1 million. But similarly, you don’t want to not pay $1.1 million if it’s the right property for you, and you can afford it.

Timing is all about being in the market, and determining the right time for you to buy. And it’s always the right time to buy if you’ve found the right property for you.

Case Study

Dear Mal,

Again, thank you for your advice and assistance respecting my recent acquisition of an investment property on The Esplanade Brighton.

Whilst I have had considerable experience myself buying and selling investment properties on behalf of clients; it is quite a different matter when you are doing it for yourself. I greatly appreciated the “objectivity” you brought to the table in my transaction.

Likewise, your extensive network and established relationships with many Estate Agents were critically important factors in getting this deal “over the line”, not just in such a short period of time but within time; in my case, everything had to be done by June 30 last.

Quite frankly, if I had been left to my own devices I would probably have given up on the exercise as I was just so busy with clients’ work during the relevant time frame. Alternatively, in my haste to get it “over the line” the wrong signals would have been sent to Vendor parties.

I was most impressed with your professionalism and attention to detail; well done. I would not have the slightest hesitation in recommending your services to any of my clients and business associates.

Yours faithfully,

Michael J Pharr

ROGERS & GAYLARD LAWYERS – BRIGHTON