Off plan is a fabulous strategy if you know when you get into it and when to get out. As with most things relating to picking exact dates you cannot! So you need to track trends rather than dates.
Having an understanding of the off plan process and the Property Trend Cycle will allow you to pick when not to invest, this video explains this.
Hey, guys. Property Search… Think Gladfish. So when is the best time to do off-plan property?
Hi, guys. I'm Brett Allegre-Wood, and this is Property Rant.
So the best time to do property is actually when nobody else is talking about it necessarily. So off-plan is one of these unique strategies, not something that you want to do the entire time that you're investing, because there are certain times, certainly when prices are dropping in free fall like that, that's when you probably want to be out of it. And ideally, you don't want to do it as it starts to reach the peak, because it could drop, and then you end up, rather than you buy at this price, complete at that price, and then you have all problems with mortgages and things like that. So that's one of the risks. But this is about what is the best time.
The best time to get into property…and what I say is three to five years before somewhere is a hotspot. Now why do I say three to five years? Because it's all good to say, “No, no, no, I don't want to wait three to five years.” Look, there are strategies where you can get in at the right time, perfect time, right before and ride it up and double your money like that. And you know what? We've got clients that do that, and we've got clients that have done that on a regular basis over the last five years.
But you know what? As you start to look through 10 years and 15 years and 20 years and 25 years that I've been around this, you can't always do that, unless you're prepared to be really mobile. And I'm talking now, mobile means you have to up and go into a different country and a different area and different areas within those countries. And that means a lot of research. That means, for most people, that's not practical. Realistically, the UK market – and let's just deal with the UK market – the UK market is…actually, they're a sole or core strategy, as you like.
So when is the best time to get in? Three to five years before something is a hotspot, before you start seeing articles in the newspaper talking about how regeneration has caused house prices to go up 30%, how the market is galloping up. When that happens, yes, you can make money, and that's a great time to get in.
No problems with that, depending on your strategy, because it may have already gone. You know, if somebody's gone up 30% one year, 30% the next year, that's 60%, let's say. That 60% isn't likely to go up another 30% in the next year, or is it potentially going to top out? And that would be my concern. Most people make the mistake of thinking, “30% this year, 30% this year, I'll jump in now.” No. I want to get in before that happens. I want to be buying in there as the fundamentals start to hit at rock bottom prices, and then as the fundamentals change and the market changes and the demand changes, I ride that wave all the way up, and that is the key, not just to off-plan, but any property.
Now my strategy is to buy and hold for the long term, so it's not just about getting in, it's about holding it. So it's not just getting in and getting out, getting in and getting out, getting in. That's not the strategy I would… Buy and hold. And hold for the long term. And we're talking… I've sold two properties in the past 15 years. So when we talk about buy and hold, I'm walking the talk. Now, could I get in and out? Yeah, I could, absolutely. But you know what? I much prefer to watch the property trend cycle where it is. I use the ripple effect pentagon, and if you're not sure of what those things are, jump on our website, type it into Google, and get educated about that, because that will help you pick the best times to jump in, and therefore, the best times to do off-plan.
Otherwise, chat with the team. They're skilled up tremendously on this, and yeah, fantastic.
Guys, have a great day. Live with passion.