Last week, I explained the property clock and the peak or 12 o’clock on the property clock. Let’s look now at the downswing or declining market on the property clock. Some property analysts also refer to this as 3 o’clock on the property clock.
But what does this mean? A downswing is just that – property prices and sales are falling, building projects are being abandoned and rental yields are not competitive. Is this a great time to buy? Maybe not. If the property market is in a downswing, then it needs to complete the cycle and bottom out before it moves upwards again.
One key to investing is to identify when a property market is falling and stake it out until you feel that the time is right to buy. The downswing and bottom of the market is the time when bargains are easier to come by.
However, I do need to add a little warning here! I cannot emphasise enough the importance of having a property investment strategy and knowing what your goals are and the timeframes to achieve them. Just because the market says the time is right to buy, doesn’t necessarily mean it is the right time for you! Successful property investment is more about good decisions & management and sticking to your strategy.
But it does help to be able to read the time!!!