What’s one of the most expensive days to buy flowers? Mother’s Day, of course–when everybody is buying flowers.
So, what’s the most expensive (and therefore least profitable) time to buy real estate? Answer: When everybody else is.
At McCarthy Group, one of the most difficult things to get across to those just starting out on their property portfolio building journey, is how to avoid the herd mentality – doing what everybody else is doing at the same time as everybody else is doing it.
I like this quote from Warren Buffet: “Be brave when others are fearful, and be afraid when others are brave.” With this philosophy, and his “invest for the long term” approach, Mr. Buffett became one of the richest (and arguably the best) investors in the world.
The Property Cycle
And you know what, when it comes to real estate investment, it’s really not that difficult. The signs are there if you know what to look for. Auction clearances, tradesmen availability, rental returns – they’re just some of the indicators that I help my clients to learn to read. The key message I want you to understand is that you need to break the cycle down into its different phases. In fact, as you can see in the illustration, the cycle can be really quite predictable – it’s learning what to do and having an investment strategy for each phase of the cycle that can be the difference in building a profitable property portfolio…or a not so profitable portfolio. I want to make sure it’s not the latter for you.
Find out how you can benefit from knowing more about the Property Cycle, get in contact today!