When is the best time to invest in property? … Now.

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Someone asked me a question the other day – “when the best time is to buy a property?”

It’s an interesting question that unfortunately not a lot of people think about when they are thinking about investment. If you’re thinking this very thing at the moment, ask yourself this:

1. When the supermarkets have a price war on bread, and it’s all reduced to $1 a loaf at Woolies and Coles, do you go and purchase many loaves and freeze them, because they are cheap and you know the same loaf will cost you more to buy in the future when prices return to normal?

2. When you’re going shopping over the Christmas period, if you see something you like that is for yourself and not a Christmas gift, would you purchase it at its retail price knowing that in a few days time its going to be half price in the Boxing Day sales?


The general thought pattern we have with most things we are looking at purchasing is that we want to buy when the price is low, at the times we can get a bargain, rather than at the times when prices are high. 

The same should always be for real estate, yet for some reason we tend to forget about this and buy using a sheep mentality – that is, waiting until the market booms and everyone else buys, then we jump in and purchase.  The problem with this is that a lot of the price growth has already taken place and you can risk buying at the top of the market.


Cigna Financial - When is the best time to buy real estate property investment

Right now, market conditions are the absolute best we have seen them in over a decade to be buying real estate.

Many capital and regional property markets are at the bottom of their cycle, or entering into a recovery phase, meaning growth will be on the up.  Mortgage interest rates are the lowest that most of you have ever seen.  When was the last time you can remember getting sub 5% finance on your home?  We secured a fixed rate of 4.89% for a client just last week.  The economy is looking good – unemployment nationally is still a very low 5.4%, meaning that out of 100 people, 95 of them have secure jobs.


The market is turning. There is no doubt about that. Westpac has been the first to raise their fixed mortgage rates last week in a sure sign that they believe the next move from the RBA will be to lift rates, instead of lower them.  In case you missed that, yes WESTPAC RAISED THEIR MORTGAGE RATES. They’re the first bank to do so.


I would urge you to absolutely get in contact with us sooner rather than later, to talk through your investing options, and to discuss fixing your mortgage rates now before the other banks follow suit and also raise rates. Don’t put this off.  These are absolutely the best conditions NOW to buy investment property.  Make sure you don’t miss the coming growth!


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This article was written by Kent Leicester

Kent has over 12 years experience in business management focusing on investment strategies. After graduating from Waikato University (NZ) with a first-class honours degree in business, Kent worked in professional services for a Big 4 accountancy firm, before consulting to several global investment banking teams. Kent went on to become a full-time research analyst and investor at age 27. Kent’s specialist research and negotiating skills constantly secure favourable, high-quality investments for Cigna’s clients, that consistently outperform the market. He has extensive experience in both New Zealand and Australia and a reputation as a reliable, trustworthy investor and advisor. Kent is married to Clare and has two young boys. He is a keen triathlete and enjoys all board and water sports. Kent lives in Queensland and manages the Australian operations for Cigna Financial.