Many home buyers and investors are being swept up in a frenzy of fear and greed as property markets hot up. These buyers are setting themselves up for problems in the future.Traditionally when we come out of the slowdown phase of the property cycle and enter a more buoyant market, buyers who were hesitant to make a move start to emerge and in turn, activity increases.However, now many investors, who feel they missed out over the last year as they watched others make good money in property are snapping up properties the day they come on the market, sometimes at thousands above the asking price.
Many of these “green” investors are making poor judgement calls, buying properties without doing their due diligence and paying the same high price for their mistakes as others have before them.
The take home message is that now, more than ever, you need to avoid getting swept up in the housing market hype and keep a level head when it comes to purchasing property, whether you’re a homeowner or investor.
With the market being selective as to which properties are increasing in value, it is critical that you do your homework and remember that you can’t just buy any property and become a successful property investor. You need to look for the type of property that will out perform the averages in the long term, regardless of cyclical highs and lows.
No comments:
Post a Comment