So, the burning question on a lot of investors lips, is which market do I buy in, and at what time in that cycle, right. Now I wanted to show you today the Property Clock and how it works.
Very easy to draw and understand, but very hard to predict. Okay, so twelve o’clock traditionally is hot or boom phase of the market, followed by some sort of readjustment where there’s a little bit of oversupply etc., into a flat phase, now this could last for a number of years, then into some sort of recovery where vacancy rates and the demand is increased somewhat. We see six o’clock at opportunity. Opportunity to buy in at a market that’s starting to trend upwards. That brings us into a growth phase, nine o’clock through to that hot phase where everyone knows that market is moving forward with hot growth, okay. So as an Investor, or anyone that wants to create wealth, we want to be able to buy in somewhere around that five to seven o’clock mark, now we can’t predict it every time but with thorough research we can get pretty close. We then want to write that cycle of growth to the phase where everyone’s buying and we want to buy in here when everyone’s not, up here everyone’s buying, that’s the time where we can release some equity out of our portfolio back into a new property market. Does that make sense?
So, if we’re doing that consistently, it gives us a better chance than most, of getting a really good result of growth going forward. Now, if you’re an owner occupier, you still want to be monitoring the markets to understand where you want to buy because that can also mean that you can release some equity after some growth to then start your investing journey. I hope that makes sense.