Biggest mistakes property investors make: Timing the market


There’s more property research available today than ever before.

In fact, only a decade or two ago, most property investors had to dive in with very little statistical analysis to help them choose the best locations.

Things are much different now, but sometimes too much information can make an investment decision more difficult than it really needs to be.

Cycles, cycles everywhere

Australia has eight States and Territories and the property markets in each of those locations can be performing differently at the same time. property cycle

While last year all property markets around Australia perform strongly, currently zero we are experiencing a to speed property market.

Of course, the property markets move in cycles and the main cause behind these cycles is that we’re human and tend to share the general optimism or pessimism of others.

They vary in length and are affected by a myriad of social and economic factors and then, at times, the government lengthens or shortens the cycle by changing economic policies or interest rates.

Currently Sydney and Melbourne seem to be running out of steam, maybe around 10 or 12 o’clock, while Brisbane and Adelaide are still growing strongly.

The issue is that no one really knows, not even the experts, how long each cycle will last because it depends on a huge number of variables including economic conditions as well as human behaviour – and we all know how hard that is to predict!

Buy at the bottom and sell at the top?

Warren Buffett has long been attributed to a quote that reads along the lines of: “Be fearful when others are greedy and be greedy when others fearful.”

Investors interpret this adage as buying at the bottom (when others are fearful) and selling at the top (when others are being greedy).

But that’s not always the best property investment strategy.

I frequently meet investors who have missed out on a great opportunity because they were so consumed with timing the markets, they forgot to actually take the plunge and buy something.

Generally, these investors become obsessed with the idea of buying right at the bottom of a property cycle so they can secure a “bargain”.

While the stage of the property cycle should be considered when you are investing, it shouldn’t form the entire basis of your decision.

In my experience, strategic investors do well in any market cycle, because they understand that it’s time in the market that’s more important that trying to time the market.

Market timing mistake

What I mean by that is sophisticated property investors buy investment grade properties whenever the time is right for them in a location that suits their strategy. property time market clock house cycle investment timing watch growth

The important part of that statement is that they always buy “investment grade” properties because this type of real estate is proven to do well in all market conditions compared to other properties.


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