A Roller Coaster: What I've Learned Over My 7 Years in Property

Scott Dixon

In the world of property investment, it's easy to feel like you're riding a roller coaster. The market's ups and downs can be dizzying, and the constant debate about the best time to buy can leave you feeling uncertain. But over my seven years in the property game, I've come to appreciate a simple yet profound truth: it's not about timing the market but more about time in the market.

Investors often find themselves caught in the trap of waiting for the perfect moment to make their move. They watch market trends, read predictions, and listen to the advice of well-meaning friends and family. However, this approach can lead to analysis paralysis and missed opportunities. The investor who procrastinates and doesn't take action typically becomes the investor who never invests and ends up being left behind in the market.

So, what's the alternative? Focus on time in the market. By starting your investment journey sooner rather than later, you give yourself the opportunity to learn, grow, and adapt. Property investment is a long-term game, and building a portfolio over time can be more rewarding than attempting to time the market perfectly.

However, before you dive headfirst into the property market, it's fundamentally important to get four main factors straight: strategy, finance, tax, and buying the right property in the right location.

• Strategy: Your investment strategy should align with your goals and risk tolerance. Are you looking for steady rental income, long-term capital appreciation, or a mix of both? Understand your strategy, and it will serve as your North Star in the world of property.
• Finance: Adequate financing is the lifeblood of property investment. Ensure your financial house is in order before you start. This means having a clear budget, understanding your borrowing capacity, and exploring various financing options.
• Tax: The tax implications of property investment can be significant. Consult with a tax expert to maximise deductions and minimise liabilities. A well-thought-out tax strategy can boost your returns in the long run.
• Location and Property Selection: Location matters—a lot. Research areas with strong growth potential, good rental yields, and a stable economy. When choosing properties, look for value-add opportunities and consider the needs of your target market.

While these four factors are essential, having the right backing of a consultant or a team guiding you through the minefield of where and what to buy is equally vital. The property market is ever-changing, and staying ahead of the curve requires industry expertise.

A knowledgeable consultant can help you navigate market fluctuations, identify emerging trends, and spot opportunities that might not be apparent to the average investor. They can also provide insights on the best areas to invest in, helping you make informed decisions.

In conclusion, the property market may seem like a roller coaster, and the quest for perfect timing can be elusive. However, by focusing on time in the market rather than timing the market, and by ensuring your strategy, finance, tax, and property selection are on point, you can set yourself up for success. And with the right consultant by your side, you'll be well-prepared to tackle the twists and turns of the property investment journey with confidence. Remember, in property, it's not just about the destination; it's about the journey, and the journey can be immensely rewarding.

If you're ready to start your journey, feel free to set up a call with me.