I look at hundreds of portfolios each year, and when people strike trouble it's because they have lost sight of their own requirements. By the way . . this includes people who sit on the sidelines waiting for 'the market' to dip / improve / tighten / heat up.
Many buyers become side-tracked by 'monitoring the market' . . . but how are they doing this?
They're using sales data and suburb performance information . . which, as we have discussed earlier . . is a useless indicator for predicting where the market is heading.
There's a much better and more reliable source of information you can use as a decision making tool. It's more easily accessible and easier to understand – start with reviewing your personal situation.
Firstly plan out what you want to achieve, then take action to achieve your targets.
Consider the time you have available, your skill set, interests and targets. This will help you decide why you're buying, and how much effort and funds you're comfortable and able to commit to any purchase.
If you have equity or savings to cover your target purchases and have a stable income (if you want to utilise a loan), use this information to decide when to buy.
Your decisions about effort, budget and targets should now inform what you should buy, and where you should buy.
After you have used your personal situation to narrow down the why, when, what, where of your purchase/s you can utilise relevant information to identify which property to buy.
Ironically, when buyers make unsuccessful purchases they will often blame the market. You don't need to be one of these buyers. You're in charge of your financial future and can take control by using your personal situation to determine when to make any purchases.
Following 'the market' will lead you to make the wrong decisions. People who take this approach end up either waiting on the sidelines, and then jumping in when the market is hot . . .or sitting outside of the market and losing money. They're not following the market, they're being driven by it.
By using your personal situation to make decisions – particularly when to buy – will enable you to take a much more straightforward pathway to achieving your goals, and make the choices that will ensure your financial success.