I’m going to wait and buy for less.
This is the same story I have been hearing for the last 20 years. Everyone tries to second guess and predict the market. This can be a very dangerous game and is one that you are unlikely to ever win. Not even the experts can predict what the market is going to do so what hope have mere mortals got when it comes to the biggest assets we own.
It’s important to first decide why you want to buy and what the reason is for you to be thinking about that particular journey. There can be many reasons from buying a home to live in, or an investment vehicle to give you a return on your money. Either way, you must have a long term view and not think about short term returns or market movements.
If you look at the UK housing market over the last 20 years there has been an increase of over 400%. During this time there have been blips and recessions including the great financial meltdown of 2008 however, the market has always recovered. As with any asset class, there is always going to be a risk attached as well as having the opportunity of an upside return.
The important thing to remember with property is that it is not and should not be considered a short term investment. You have to think in at least 10 year cycles as you need to allow the market to run its course and also the financial expenditure during the purchase and sale process must be factored in to the overall equation.
Over a 10 year period you will always find that you have performed well and that property is a fairly stable asset class that has less volatility than equities or index funds. The biggest plus point is that if you will at least have a home to live in during the highs and lows if you are an occupier and if you are an investor you will still have the cash flow during the lettings process.
If you want to invest for a short term gain and are only looking to be in the market sub 10 years, then this is probably not the right investment vehicle for you. I am a huge fan of property as an asset class and have a large portfolio of my own which has been a stable and high return vehicle for the last 20 years and this is only because I have not been focused on short term results. I still consider the investments as a retirement fund and I am playing the long game.
So, if you are thinking about property as an investment or your next home and have any questions or need advice then feel free to ask me questions in the comments or DM me and I would be happy to help.