The question of whether to purchase property still goes back to the fundamentals, which is firstly to determine what is the purpose of the purchase. This is still the key question.
We as investors or buyer need to be clear on these 3 matters;
1 What is the purpose of the purchase
2 Investment / purchasing criteria
3 How they intend to finance the purchase
Different properties would suit the different purpose and criteria of prchasers.
In view of job instability and constant talks of "pay adjustments", many may choose to cash out on their investments at a "compromised profit" to ensure that they tie through this period without incurring too heavy commitments on mortgages, etc. Property investors could pick up these properties that would normally go on high market prices at these "compromised profit" prices.
Those who are able to hold on their property investments with a buffer to service the mortgage for a period of, say 1-2 years, even in the absence of rental. These investors are on a safe path to sail through this global economic crisis.
The important thing to note is to NOT jump in and purchase any property that is perceived to be below market price. We need to do our SWOT analysis and do the necessary research and preparations that should accompany substancial investment such as property. We should view our investment strategy as a life time's occupation, based on savings and hard work, not a 12 month rush to become an overnight millionaire, which will be the road to ruin for many.
Remember that unlike shares and savings, there is no quick way to get your money out when investing in property. Investments in property can go down as well as up in the value depending on its location, and property can sometimes take a long time to dispose of. Never invest money in property which you may need in the short term. You may have to wait sometime if you need to sell and get your money back. Invest with long term perspective and get trustworthy professional advice.
No comments:
Post a Comment