The most successful property investors know where properties sit on the property cycle and which occurrences have the biggest effect on the cycle. They use the property clock to research and understand broad market dynamics. The property clock points out the perfect times to invest during the property cycle. If you plan to start investing in property, you must comprehend how the property clock works. It will help you to know how the market is developing. Here are the best ways to leverage the property clock.

Know When to Buy

The property clock tells investors when to buy, hold, and sell property. It has two major time segments.

12:00 – The property cycle reaches its peak. Supply is low and prices escalate.

6:00 – The cycle hits its lowest point. Supply exceeds demand and prices dwindle.

Between 12 o’clock and 6 o’clock, the market could be thriving, stagnating, or declining. When the cycle is at its peak property investors are very optimistic. Economic basics such as job security, low unemployment rates, and an atmosphere of prosperity give people the motivation they need to buy property.

At 6 o’clock, the market is very subdued and doesn’t generate a lot of interest. Surprisingly, this is when most developers and property educators encourage investors to buy properties. The problem with buying at this time is that the property market could take long to pick up.

The best time to invest in property is 7 o’clock as the market begins to bounce back. This is when perceptive investors buy. Property prices may be high at this point, but you won’t have to wait long to see growth.

Avoid Timing the Market, Spend Time in the Market

Many investors believe that timing the market is more important than time in the market. This is a misleading notion. You have a better chance of succeeding if you hold onto property rather than selling after a short period. When it comes to property investing, time in the market is everything. Timing is important for speculative investors who like to take big risks – and risk big losses. Additionally, very few investors can time the market with accuracy.

Time in the market helps you to build passive wealth – you buy at the right time and sell at the right time. The more time you spend in the market, the better. For instance, if you hold onto your investment property for 10 years, you do away with the market ups and downs. What’s more, research shows that Australian properties double in value every 10 years.

Seek Expert Advice

Buying an investment property involves a lot of decision-making. It is imperative to choose a mortgage broker to help you navigate the process. They will tell you when the market slows down, when lenders tighten their lending criteria, and when events occur in the market. They will give you all the information you need to succeed in the property market.

If you want to build a good property portfolio, you must buy strategically and have the right mix of capital growth and cash flow assets. This helps you to weather the cyclical lows of property investing. Leverage the property clock and become the wealthy investor you’ve always wanted to be.