‘Time In’ as Important as ‘Timing’

Posted by Daniel Joseph

The research that drives Blue Wealth’s recommendations is based on two important factors:

Economic fundamentals: Identifying those regions that possess the economic fundamentals that are most conducive to growth in property values.
Market timing: Identifying those property markets that are at the bottom of the cycle and therefore offer the greatest value to investors.

Another important facet of property investing, however, is ‘TIME IN’ that is, the time you hold your investment. Research by RP Data indicates that on a capital accumulation measure, the property market has outperformed the capital market over the last 10, 5 and 3 years. The magnitude of outperformance is an increasing function of time, meaning that property offers the most to those with a long term investment philosophy.

In addition, RP Data found that of the 63,390 home sales in the June quarter nationally, 88 per cent of sellers made a profit, with more than 30 per cent of all resales changing hands for at least double the purchase price. Residential resale profits increased 26 per cent in the June quarter to $12.1 billion. Of those homes that doubled in value, more than 80 per cent had been held by their owners for 10 years or more. In property investment, patience is clearly the key.

Selecting the right property at the right time and holding it for the long term increases an investor’s chances of reaping the rewards of the property market. Blue Wealth provides its clients the opportunity to acquire premium residential stock at the right time on the property clock. Making the most of that opportunity, however, depends to a large degree on your ‘TIME IN’ the market.

Posted by Daniel Joseph, on 21st Feb 2014