Investing in property, the time is now!

Why there might never be a better time to buy

Property

One of the biggest investments of most people lives.

It’s also a long term investment opportunity. I don’t know if prices have ever recovered from the 2008 crash.

What I do know is that prices are heading downwards and fast right now. People are looking to turn assets into cash.

Their second properties are hitting the market and they are cheap.

As entrepreneurs and investors, this is an opportunity. Partly because the buy-in is cheap. But also because the rental market is as busy as ever.

I got out of the property market a few years ago. In my area prices were at all-time highs and it felt like time to cash out.

Since then I have always kept an eye on the market wherever I am. Over the last few months, in many areas, it has imploded.

Properties are up with 30% plus discounts.

It seems like an opportunity t get back in. One of the reasons is the low buy-in.

A 2-bed property that’s $50k only needs a $5k buy-in and low fees. The mortgage rate even over 3 years is less than $1000 on a fixed rate.

Rental around $800 per month is a decent rate of return. Take a 6 or 7-year mortgage and it’s paying the bill for the property every month plus $3k or so in pre-tax profit each year.

I like a shorter mortgage so that I own the property quicker. But that’s a personal choice, not sound financial advice.

Those opportunities are out there if you have the cash to make the down payments. Plus the steady income to cover the mortgage payment in months with no rent. Then it looks like a property is a valid investment once again.

Like any investment decision. You should seek some independent financial advice before you commit. The information here is my point of view and opinion on the subject.

That said there are some other pointers you should look at such as:

Are there taxes or fees to due on top of the property price? What will those be and do you have the cash to cover them. What do they do to the payback time.

What’s the area like? What do rental incomes look like there?

What is the tax rate you will pay on rental income and what can you write off each year?

What will this investment do for you? Its recurring income so it’s always good to have an idea of what the plan will be for that. Before you commit to spending cash and taking on debt. Which is what a mortgage is. Albeit we are betting that the value of the property is always more than the debt.

If you have been looking at property as a potential investment. Now is a good time to take a closer look.

The trifecta of low prices, low-interest rates, and a strong rental market. Could make property investment more affordable than ever before.

As an income stream in a portfolio of investments and businesses. Property can be hard to beat.

Buy, hold, sell — wealth creation and investment in these strange times.

It’s a big question right now, with some commodities and the majority of share prices at all times low what done do for the best.

Well alot of people are saying keep your power dry and continue to hold cash, I dont think that’s bad advice at all actually and it’s also advice I’m sticking to for the time being.

Obviously any investment decision anyone makes is deeply personal and I’m in no way qualified to help anyone with their investments or finances but I do think there are a number if interesting things going on in the market right now that are worth us knowing about, even if it’s just for fun and to pass the time.

If you want to then explore those further then that’s up to you as an individual.

Energy shares and particularly oil and gas related shares, have as demand for oil and gas has fallen through the floor just crashed. Many of the stocks have lost 70 percent plus of their values since January. Typically these shares come back as the commodity price comes back and the market settles out, which with everyone across the world in some form of lockdown will still take some time.

Now could be a good time to take advantage of the low buy in, invest in these stocks for the upside as the markets rebalance or hold onto them for the dividends they regularly pay. As energy stocks are generally seen as dirty or tainted today by environmentalists these companies will keep paying premium dividends to offset that outlook and keep the big institutional investors interested.

But what about assets, well depending on what those assets are and where they are in the cycle it could be time to buy, continue to hold or to sell.

As an avid watch collector I’ve seen values of some watches hold pretty steady and others soar, big impact brands like rolex, panerai and patek to name just 3 are either not on production or are operating at a limited manufacturing capacity. This could therefore be a good time to sell, certainly some of those watches are going up in value right now so it’s worth keeping an eye on.

Classic and or collectable cars is also a market worth looking at right now I think based on some of what I’ve seen. While the bubble burst sometime ago back in 2019 we still hadn’t really witnessed a huge rebalance of the market although I think we are staring to see that now, which is great of your buying, although obviously terrible if your selling.

What’s interesting about this market is parts and accessories. So many of us are at home right now and those interested in cars and bikes, are digging out old projects, this is starting to take a grip on parts and accessories values and so those are actually going up. A good time to see what you have stuffed in the garage or shed and get it online perhaps.

The point is that in these uncertain times, it pays to look at the various markets and outlets, some of us will continue to hold our cash, some will look at opportunities and see investment potential and yet others will find they have riches long ago buried that are worth alot more than they paid for them…

Even if you just take a passive interest right now like myself, spend a couple of hours digging around, it’s a fun use of your time and I guarantee you will be surprised at what’s going on right now.