The answer to this question roughly depends on five things that differ per situation/person:
- Indirect return object: When you only anticipate an indirect return (value development) when purchasing an investment property and therefore make little or no return from the rental income. Then the only way to make a return is to choose the right purchase time. Note that this return is purely accounting.
- Immediate Return: In many cases, investors buy real estate in order (contrary to what is stated above) to generate an immediate monthly return from rental income. If it turns out that you have bought at the peak of the market, this often has no consequences for your direct return and therefore monthly income.
- Financing: Do you wish to use financing when purchasing an investment property? Then it may be wise to make use of the current financing climate. In a good market, financing is simpler and cheaper (low interest).
- Horizon: Are you investing with a horizon of less than 10-15 years and are you therefore taking into account a sale of the property in the ‘short’ term? Then the entry moment is extra important. Your total return is largely determined by the difference between purchase and sale value. The moment of sale is also the moment when you ‘take’ the profit or the loss.
- Alternatives: The last consideration that should play a role in whether or not to buy real estate is whether you have alternatives to make your money better in the long run than in real estate.
In view of the above, we are happy to schedule a personal meeting to discuss your wishes and the possibilities.
