Timing the Property Market: Myth or Reality?

In this episode of Talk Property To Me, Brad East chats with Aaron Downie, a seasoned expert from Mackenzie Buyer's Agency, sharing valuable insights on property investment and the ideal timing for purchasing property. Aaron's extensive experience in navigating the property market and his practical approach make him a relevant and credible voice on the podcast. The conversation covers the urgency of taking action in the property market, debunking the myth of trying to out-save market growth, and emphasizing the importance of seizing opportunities aligned with long-term goals. Aaron's personal anecdotes and practical advice provide a refreshing perspective, offering listeners valuable insights into the complexities of property investment and the significance of informed decision-making. The episode not only challenges common misconceptions but also lays the groundwork for future discussions on specialized property investment topics, making it a must-listen for potential property buyers looking to make strategic and confident investment decisions.

Timestamped summary of this episode:

00:00:24 - The Best Time to Buy an Investment Property

Brad and Aaron discuss the common question of when is the best time to buy an investment property. They emphasize that interest rates are just one factor and share examples of successful market timing.

00:03:16 - Taking Advantage of Market Conditions

Brad shares his personal experience of purchasing property during a time of market uncertainty and seeing significant growth in a short period. Aaron highlights the importance of understanding supply and demand dynamics in a market, rather than solely relying on interest rates.

00:06:40 - The Long-Term Perspective on Property Investment

The conversation delves into the long-term nature of property investment, emphasizing that property should be viewed as a long-term asset. They discuss the pitfalls of tracking property prices daily and the transactional costs of selling property.

00:09:28 - Influence of External Factors on Property Decisions

Brad and Aaron touch on the influence of external factors, such as parental advice and media narratives, on property decisions. They caution against taking advice from individuals who may not be where you want to be in terms of property ownership.

00:12:06 - Impact of Procrastination on Property Purchases

The discussion addresses the consequences of procrastination in property purchases, particularly when individuals have pre-approval but delay buying, only to find themselves priced out of the market. They highlight the compound loss over time due to delaying property purchase decisions.

00:13:43 - Urgency of Taking Action

Aaron emphasizes the importance of taking action in the property market without waiting. He highlights how borrowing capacities have decreased for some, stressing the need to align expectations and not try to out-save the market.

00:15:24 - Best Time to Buy

Brad and Aaron discuss the best time to buy a property, focusing on the importance of establishing short and long-term goals, regardless of whether it's for owner-occupiers or investors. They emphasize the need to buy as soon as one is able to.

00:17:16 - Rent Vesting Strategy

The conversation shifts to the rent vesting strategy, which has become popular in expensive markets like Sydney and Newcastle. They highlight the challenges of affordability and the impact of various financial factors on purchasing decisions.

00:18:22 - Overcoming Barriers to Purchase

Brad and Aaron discuss the willingness to buy property using lenders mortgage insurance and the opportunity cost of waiting to avoid such costs. They stress the importance of considering it as a cost of purchase and not delaying the buying process.

00:19:52 - Future Topics and Engagement

Brad and Aaron preview upcoming podcast topics, including an in-depth look at the Perth market, strata titled and titled properties, units versus houses, and new versus old properties. They encourage audience engagement for suggestions on future topics.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

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