The best time to buy property was 20 years ago. The next best time is NOW.
Nice little sound bite used by everyone who sells property and is quite easily dismissed by some without a second thought as a result. But is there a grain of truth?
Statistics don’t lie, over the past 30 years, the national average growth rate has been around 8% per annum. This translates to a doubling of property prices every 8-12 years on average. Some have done far better and some have done worse.
What this means is that if you are committed to investing in the long term, 10+years, then provided that you have chosen the right type of property in the right location, then that property will see good growth if history is anything to go by.
That is why it is important to take action NOW. Some of our clients come to us and are a little bit disappointed that they cannot purchase a 3 bedroom townhouse that is within 5km of the CBD for their intended budget of $450,000, but instead, can afford one in a growth corridor out in the Greater Western area. Many then immediately default to the position that they must save more before purchasing in the belief that they will catch up.
They won’t. The market is appreciating faster than inflation and unless they are able to save at a rate that is much higher than what they are currently capable of, every dollar that they save is worth less outside of the property market than had they put the original amount into the property market at price point that they could comfortably afford.