Property investors are being advised the perfect time to buy property does not exist, with investors encouraged to use smart property strategies instead of waiting.
In a recent discussion on the latest podcast on the Smart Property Investment Network, The Reason, Cohen Handler director and co-founder Simon Cohen explained the challenges for investors trying to get into the market.
“The reality for me is there is never a right or wrong time to buy. You can’t pick the top, you can’t pick the bottom,” Mr Handler said.
“If you could bill, I’d be drinking champagne on an island in the Maldives right now, but I’m not. The reality is, I think there’s going to be plenty of opportunity and I think you make money when you buy and if you hold it, if you renovate it, whatever you do.”
Instead of trying to find the perfect time to buy, investors should be looking to make their money on the deal, as the property adage of “you make your money when you buy” holds true.
“For me, it is the price you pay when you buy your home. If you buy it well or if you buy with opportunity, it’s always going to go up. If you overpay at the beginning, it’s going to take many, many more years longer to catch up to fair market value and then many years longer to actually increase in value. If you can buy it at the right price in the beginning, you’re going to be ahead of the game from day one,” Mr Handler continued.
The property investor explained the importance of doing research instead of trying to time a market, otherwise risking becoming a schmuck.
“A schmuck is just someone who thinks they’ve got the upper hand without the competitive advantage. I’m the schmuck who’s going to go to auction and just pay more than anyone else to win it, to get it,” he said.
“I think if you don’t understand what things are valued at, if you don’t have a competitive advantage, you don’t have a competitive edge, then you’re just another schmuck.”