Property is always being suggested as one of the best investments. But, you might be surprised to hear that it is not always the best idea.
Like any investment, it needs to be done right, timed well, and generally approached with caution and care. To help you do just that, I’ve put together some of the signs when investing in property might not be a good idea.
When it’s a seller’s market
First of all, you should take care to pay attention to the market before you buy a property. This is not about timing the market, as such, because nobody can really do that effectively on their own.
It’s more about noticing when it might not be a good market, which essentially means that it is a seller’s market.
That refers to when you would rather be a seller than a buyer. In other words, the market is currently such that you are expecting property prices to be higher.
You obviously want a buyer’s market, so make sure that it is something you are watching out for.
Your advisor says no
It’s definitely a good idea to have an advisor on your side too. They are always going to be able to help you to figure out when it’s a good time to invest and when it might not be.
In fact, a much better thing than just having one investor is to be part of a property investment group, such as the BuyAssociation Group.
That is essentially like having access to so much more information, data and wisdom across the board. This should help you to make much more sensible decisions on the whole.
When you have debt
In general, you should not try to invest if you have a lot of debt outstanding. If you think about it, this makes perfect sense.
Having a lot of debt means that you are paying a lot in interest. Unless you can hope to make more of a return than that on your investment, it’s simply much more important to pay the debt off first.
Plus, if you are trying to get a mortgage, you are going to find that is much easier to do if you have no debt at all in place. So if you have any debt, consider strongly paying it off in its entirety first. Before you even think about trying to invest in property.
If you have personal commitments
Buying or investing in any type of property can be very stressful. So if you have any personal commitments, like you are planning to have a baby or care for an elderly or sick relative, it might be a good idea to hold off investing until you have the head space to deal with it.
Some may argue that there is never really a ‘good’ or ‘bad’ time to invest in property. That being said, you can time an investment right and to your advantage. If you manage to do that, then your property investment is going to be much more successful.
Save for later…
This is a collaborative post