Expert Advice by Paul Wilson
16/04/2013
I tend to be one of the mind of Warren Buffet who said, ““be greedy when others are wary and wary when others are greedy.” In saying this, Buffet was warning against following trends for the sake of simply doing what everyone else is doing. Rather, watch for trends, but keep to your investment strategy through weak markets or strong. So setting all other considerations aside for a moment, what do the market trends indicate? Is 2013 a good time to invest in property?
To find out, let's visit some recent headlines from websites and news papers worldwide.
“Rankings put Miami as one of the most searched for property destinations in the world”
“Living green residential tower could be built in Dubai”
“Economic progress in Africa increases demand for good quality projects in major cities”
“Beachside property project tipped as potential hot spot”
“Housing affordability surges in Australia”
In the case of Miami, the beach front properties are experiencing a boom as foreign investors continue to seek high-end luxury apartments. Even Las Vegas is said to be experiencing a housing shortage. When we read about the French Alps, we are at once reminded of the very wealthy who are purchasing summer homes in the Alps, near to the casinos. And naturally we would expect Dubai, one of the wealthiest nations in the world to be building yet another unusual high-end apartment complex.
But we also see stronger housing markets in Africa, South America, and even here is Australia. For a certainty, the global housing bust seems to have completely abated for now. Still, Warren Buffet's warning is ringing in my ear. Is this a real trend to pay attention to or should we hold back from investing?
Keep in mind the goal of your investing. If your goal is to only buy positive cash flow properties, there are plenty to find. If your goal is to only buy capital gains properties, then now is a great time to buy. And if your goal is to grow your wealth? Now still seems good. It seems that no matter which direction this is turned, 2013 is shaping up to the a great year for property investors.
Of course, this trend is not going to continue forever and certainly any wise property investor will watch the markets closely, especially if they do not intend on keeping the property long-term. In other words, if the goal is to buy low and get out when the property has increased in value enough to be worth the purchase costs, then watch the market close. It seems strong for now by all indications, but as we have seen from the past, that can change rather quickly.
As with any trend, I remain in Buffet's camp. If the property fits into my strategy and I can make positive cash flow, I buy because the property will place me closer to my goal. If the property fits into my strategy and will result in capital gains, I buy for the same reason. If the property does not fit into my property investment strategy yet still seems a great purchase, I investigate further.
The point is, I do watch trends but my investment strategy is not contingent on trends. I believe that any time is a great time to buy a property if making the purchase either fits into my investment strategy or makes sense. So yes, 2013 is going to be a great time to buy.
Paul Wilson is an Independent Property Investing Expert and the founder of We Find Houses, Educating Property Investors & We Find Finance. Paul has been educating and coaching investors since 2001. Paul provides valuable, independent guidance and support by teaching strategies on how you can invest successfully while protecting yourself from commission hungry sales agents and property spruikers. Protect yourself with knowledge, contact Paul today for a complimentary consultation on 1800 600 890 or email paul@wefindhouses.com.au
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
