Potential property investors should always buy when the market is soft, one economist has claimed.
Speaking at the 2011 Aussie Sales Conference in Melbourne yesterday, BT Financial chief economist Chris Caton said investors always enjoy greater returns on their properties when the market is soft.
“Data shows that the best time to invest in property is when prices are softening, which is right now,” he said.
“If you invest in the property market during a downturn, research shows investors will make 11.4 per cent every year on top of their property price.
“However, the story is quite different during a market upswing. Investors that buy property when the market is running hot, only see 2.8 per cent gain per year.”
According to Mr Caton, while prices have undeniably softened over the past few months, the Australian property market was still easily outperforming its foreign counterparts.
“Australia’s economy is, by all accounts, performing very well. And, I believe we will continue to perform well into the future.”
“There is still plenty to be positive about.”